There is nothing more demeaning than paying an insurance company in good faith, thinking they will have your back when you need it the most, and they tell you “DENIED.” Insurance companies are supposed to refurbish whatever is lost due to damage. Some damages are not paid for, which case is noted within the fine print, so be careful when reading the contract and signing it. When you sign an agreement to pay the premiums and pay them faithfully, the insurance company must uphold the contract they signed with their client. The problem is the wording and how things are put on paper. This is where you need an insurance bad faith attorney to step up to bat down the insurance company that is denying your claim. We find this in three types of cases: health insurance, auto insurance, and property insurance.
Explaining Bad Faith with Insurance Companies
Dealing with an insurance company can be very frustrating, especially when you have been paying them for years, only to be denied coverage when you need it the most. If this has happened to you, you may be a victim of insurance bad faith.
In legal terms, insurance bad faith is defined as “a breach of the duty of good faith and fair dealing that an insurance company owes to its policyholders.” This means that the insurance company has not acted in good faith towards their policyholder and has not dealt fairly with them.
There are many different ways an insurance company can act in bad faith towards its policyholders. Some common examples include:
- Delaying or denying claims
- Failing to investigate claims properly
- Offering lowball settlements
- Refusing to pay benefits owed
- Wrongfully terminating policies
Bad Faith in Health Insurance
Health insurance is one of the most common areas where bad faith can occur. There are many different ways that an insurance company can act in bad faith towards their policyholders, and some of the most common include:
- Delaying or denying claims
- Failing to investigate claims properly
- Offering lowball settlements
- Refusing to pay benefits owed
- Wrongfully terminating policies
If you have been a victim of insurance bad faith in the area of health insurance, you may be able to sue the insurance company. It is important to note that not every case of insurance in bad faith will result in a lawsuit, but there are several things that you can do to help prove that the insurance company was acting in bad faith. The attorney will know how to handle them.
Bad Faith in Auto Insurance
Bad faith is a legal term that generally refers to situations where an insurance company unfairly denies a claim or fails to act in good faith to handle a claim. An insurer commits bad faith when it acts in any way that prejudices the policyholder, including denying a claim without a reasonable basis, misrepresenting the coverage available under a policy, and delaying or refusing to pay an auto claim.
If you feel that your auto insurance company has been acting in bad faith, you may be able to sue for damages. However, not every situation will give a valid bad faith claim. You will need to show that the insurer acted unreasonably and caused you harm to win your case. Some factors that may be considered include the insurer’s history of bad faith claims, the severity of your injuries, and the amount of money at stake.
Bad Faith in Property or Homeowner’s Insurance Claims
When an insurance company wrongfully denies a property or homeowner’s insurance claim, the policyholder may have a legal case for bad faith. This occurs when the insurance company unreasonably denies or delays payment of a valid claim. The policyholder may be able to sue the insurance company for damages.
Courts use several factors to determine whether an insurance company acted in bad faith. These factors include:
- The extent of the insurer’s knowledge of the facts of the case
- The reasonableness of the insurer’s investigation into the claim
- The good faith and reasonableness of the insurer’s settlement offer
- Evidence of any misconduct by the insurer
If an insurance company has acted in bad faith, the policyholder may recover damages. These damages can include the entire insurance claim, plus interest and legal fees. The policyholder may also recover punitive damages, which are designed to punish the insurance company for its bad faith actions.
If you have been denied a property or homeowner’s insurance claim, you should speak with an experienced attorney to learn more about your legal rights. An attorney can help you understand whether you have a case for bad faith and can assist you in taking legal action against the insurance company.
What Can an Insurance Bad Faith Attorney Do For You?
An experienced insurance bad faith attorney can help you in several ways, from consultation to settlement. First, the attorney can review your case and determine whether you have a valid claim. The attorney can also negotiate with the insurance company on your behalf and get you the full amount of your claim.
In addition, an attorney can file a lawsuit against the insurance company if necessary. If your case goes to trial, the attorney will represent you in court and fight for your rights.
Final Thoughts
An experienced insurance bad faith attorney can make all the difference in your case. If you have been denied a property or homeowner’s insurance claim, contact an attorney to learn more about your legal options. There is no reason you should go after the insurance companies or settle for a “NO” from them when you signed up for the service and pay for the policy premiums.
