As an insurance policyholder, it is a relief to know that we have insurance to cover losses related to accidents, wrongful acts, and other unforeseen events. However, what happens when your insurance company doesn't uphold its end of the deal? That's where the term "insurance bad faith" comes in.
Bad faith occurs when an insurance company fails to honor a valid claim or delays paying out benefits without a reasonable explanation. Insurance bad faith is unacceptable, and the companies that fail to uphold their side of the bargain must be held accountable for their deceitful and damaging actions.
In this blog, we'll discuss what insurance bad faith means, scenarios where it might occur, how policyholders can recognize the signs of insurance bad faith, and offer tips on how to handle a situation where a policyholder suspects insurance bad faith.
How Insurance Bad Faith Can Occur
There are several scenarios where insurance bad faith might take place. For example, if an insurance company denies a claim without providing a valid reason or delays payment for an unreasonable amount of time, it could be a sign of bad faith.
Insurance companies may also deny coverage for a claim despite the fact that the policyholder's loss is covered by their policy. In some cases, an insurance company may use deceptive tactics or dishonesty to avoid paying out benefits, such as misrepresenting claim facts or intentionally delaying the investigation process.
Warning Signs of Insurance Bad Faith
If you suspect that your insurance company is acting in bad faith, there are a few signs you should look out for. These include a lack of communication, unreasonable delays in processing your claim, and new adjusters being constantly assigned to your case. Additionally, if the insurance company offers a settlement that is significantly lower than what you believe you're entitled to, that can be a sign of bad faith.
If you ever find yourself in a situation where you suspect insurance in bad faith, it is important to take action right away. First, document everything – including conversations, emails, and letters – so that you have a record of communication with your insurance company.
You should also review your policy carefully to make sure you understand your rights and obligations as a policyholder. Depending on your state's laws and your policy, you may be able to file a complaint with your state's insurance commissioner or take legal action against the insurance company.
It's also important to seek legal advice from a qualified attorney who specializes in insurance bad faith claims. A lawyer from Berthold Law Firm, PLLC can review your policy and work with you to understand your legal options. They can also help you negotiate with the insurance company or represent you in court if necessary.
We Can Help Victims of Insurance Bad Faith
Insurance bad faith is a serious issue that can leave policyholders feeling helpless and frustrated. However, by understanding what it is, what scenarios it might occur in, and how to recognize the signs, policyholders can take proactive steps to protect themselves.
If you do suspect insurance bad faith, it is best to document everything, review your policy carefully, and seek legal advice from an experienced attorney. By doing so, you can increase the chances of a favorable outcome for your claim and ensure that you receive the benefits you're entitled to as a policyholder.
If you have been harmed by insurance bad faith and need help with your lawsuit, contact the skilled attorneys at Berthold Law Firm, PLLC with the details of your case by calling (304) 605-2040 or by filling out our online contact form.