4 Things You Should Understand About Insurance Bad Faith
Whether you own a home, run a business, or are paying off a new car, you are probably required to maintain some kind of insurance. Medical insurance, car insurance, and homeowner’s insurance are just some of the types of insurance coverage we deal with often. On our end, we have to maintain a part of the ‘deal? to keep the coverage ? like pay a premium by a certain date. For paying that premium, the insurance offers financial coverage when certain events happen. For us to obtain the coverage, the event has to be specifically covered under the insurance ? and must meet the requirements of the coverage.
?Bad faith? is a term used to describe an insurance company acting unfair to policyholders. Just because an insurance company denies a claim does not mean they are acting in bad faith. Some conditions that would represent bad faith would be when an insurance company:
Denies coverage without a valid reason
Fails to perform the rightful investigations
Delays payment without just cause
Uses deception or misrepresentation of coverage to avoid paying a claim
Offers a lower settlement without reasonable cause
Wrongfully cancels a policy
If you suspect that your insurance company is acting in bad faith, it is best to consult with an insurance bad faith attorney immediately. You are going to have to provide evidence that you have done everything within your power to communicate and work with the insurance company. Be sure to reach out to the insurance company, ask questions, try to get any issues resolved before you file a claim.
Documentation is going to help your lawsuit if you need to file one. Be sure to thoroughly review your contract to be sure of exactly what is covered and what you should be entitled to under the coverage. Keep track of all communication with the insurance company. Include dates and names and notes from the conversations. Follow up each phone call with an email so that you have a paper trail of all conversation. Before you file a claim, file an appeal with the company to get any errors or mistakes resolved. If nothing happens, send a demand letter that strongly explains to the insurance company that you are not going to accept less than what you are entitled to and that you plan to take legal action.