Property Insurance is meant to protect us from bearing the high costs of unforeseen events and provide financial security when we need it most. However, sometimes insurance companies act in bad faith, which can leave policyholders feeling frustrated, confused, and even angry. If you believe your insurance company is acting in bad faith, there are several steps you can take to protect yourself.
What is Bad Faith?
Bad faith refers to an insurance company’s failure to honor its obligations to policyholders. This can include denying a claim without a valid reason, delaying payment of a valid claim, or refusing to negotiate a settlement in good faith. Insurance companies have a legal and ethical obligation to act in good faith and treat policyholders fairly and honestly. When they fail to do so, they may be liable for damages.
What To Do If You Suspect Bad Faith
Understand your policy.
The first step is to review your insurance policy carefully. Familiarize yourself with the coverage, deductibles, and exclusions. This will help you determine if the insurance company is acting in bad faith or if they have a legitimate reason for denying or delaying your claim.
Keep a record of everything.
Document everything related to your claim, including the date and time of all communications with the insurance company. Write down the names of people you speak to, including their job title and company name, and dates and times you spoke to them. Keep copies of all correspondence, including emails, letters, and faxes. This will help you build a strong case if you need to take legal action against your insurance company.
Hire Insurance Litigation Group (“ILG”).
If you suspect bad faith, it is important to seek legal advice from an expert. The experienced Property Claim Attorneys at ILG can review your case and help you determine if you have a valid claim against the insurance company.
If you believe that you are being treated unfairly by your insurance company & think that your insurance company has committed bad faith by mishandling your claim or wrongfully underpaying or denying your claim, then you may be able to pursue other avenues, such as filing a Civil Remedy Notice outlining the insurance company’s bad faith, and ultimately litigating, to seek compensation for the damages you were entitled to, as well as possible additional damages.
The attorneys at Insurance Litigation Group understand that you can’t afford to wait around while the insurance company engages in bad faith tactics. Our Property Claim Attorneys have extensive experience handling insurance dispute cases and are well-equipped to handle the tactics used by insurance companies to avoid honoring valid property insurance claims. Contact us today!