You purchase insurance to make your life easier and less stressful when a disaster, accident or another issue occurs. Unfortunately, not all insurance companies adhere to their end of the deal.
In these cases, you may be dealing with insurance bad faith. However, knowing for sure if this is the case is important.
Denying your legitimate claim
Insurance companies have the right to deny any claim made. However, if a claim is denied because it doesn’t make sense or seems “odd,” it could be a sign of bad faith. Legitimate reasons for denying a claim include mistakes, fraudulent information or trying to claim something that wasn’t covered by the policy (to name a few).
If you believe your claim is legitimate, you can appeal the denial, and if the insurance company still denies your claim, it may be time to investigate your legal options.
Not investigating the situation properly
When you make a claim with your insurance provider, it’s their job to investigate what happened. If the company fails to do this, it’s another sign of bad faith. Sometimes the company will appear to investigate the claim without doing much, or they won’t investigate at all. In either case, it can be considered bad faith.
Delaying your payment
If an insurance company has agreed to pay your claim but is delaying payment, it’s also considered bad faith in some cases. The longer the insurance company holds money, the more interest it earns, which helps the company’s bottom line. However, this may also mean you are waiting much longer than you should for your funds.
Explore your legal options in bad faith insurance situations
Unfortunately, insurance bad faith happens all the time. If you believe this is happening to you, it’s best to find out what legal options you have to get the funds paid on your claim.