What is Insurance Bad Faith?
Insurance companies like to promote that they are there to serve you, but unfortunately, these large corporations are often just there to serve themselves. You give your hard-earned money to these companies in the form of insurance premiums, and in return you deserve protection and honesty. Insurance bad faith can occur when your insurance company fails to fulfill its obligation to you, the client.Insurance policies, whether for auto or homeowners, can be confusing. Policies are also extensive and use jargon the average person doesn’t see everyday. You will not see “insurance bad faith” defined in any insurance policy. Bad faith arises when an insurance company breaches its implied duty to act in good faith and fair dealing with you. A legitimate denial of coverage under a policy is not necessarily bad faith.
Classic Examples of Insurance Bad Faith:
- Denying payment for something covered by your policy. Let’s say the roof on your home was seriously damaged in a storm. You reported the property damage to your insurance agent, but the company refuses to cover the cost of repairing the roof for no good reason.
- Unreasonably withholding or delaying claim payment or “low balling” the amount of payment. Insurance companies may exhibit delay tactics like unresponsiveness or continuous, arbitrary requests for proof of loss/damage/etc.
- Refusing to thoroughly investigate claims against you and protect you from liability for harm to another person or for property damage. The insurance company may refuse to pay a legitimate claim against you within your policy limit and thereby expose your personal assets to a judgment.
What do I do if I think I’m a victim of insurance bad faith?
Above are just some examples of what may be considered bad faith on the part of your insurance company. If you suspect your insurance company is not dealing with you in fairness and in good faith, you may have the right to take legal action against them and recover the damages they caused you.To find out more, you should get a copy of your insurance policy and call an experienced insurance bad faith attorney. An attorney will be able to evaluate your claim and advise you of your rights.To discuss your potential case with our skilled team at Scartelli Olszewski, call or message us now.