When you purchase a homeowner’s insurance policy, you invest in peace of mind. If you suddenly need to file a claim, you might expect the insurance company to treat you fairly and help you cover unexpected expenses.
Unfortunately, many policyholders learn the hard way that the insurance company does not have their best interests at heart. You may encounter bad faith insurance practices intended to deny you the support you have already paid for, all to help the company save a little money.
What conduct constitutes bad faith insurance practices?
There are many types of bad faith insurance practices
Both state and federal laws require that insurance companies uphold their policies as written in good faith. Any attempts to avoid upholding a policy as written could potentially constitute bad faith insurance practices.
Unreasonably denying claims, possibly by lying to policyholders about their coverage, is common. Attempts to impose more expenses on policyholders could also constitute bad faith insurance practices.
If you experience an unreasonably lengthy claims timeline because the company doesn’t respond to your phone calls or submitted paperwork, that could also constitute bad faith insurance practices. Additionally, efforts to trick you into accepting a settlement far less than is appropriate could constitute bad faith insurance practices.
When your insurance company doesn’t uphold the policy that you purchased, you may have the right to pursue a civil lawsuit. Litigation can help frustrated policyholders obtain the coverage that they require.
Reviewing how your insurance company has handled a claim and the terms of your policy with a skilled legal team could help you evaluate your position. Filing a bad faith insurance lawsuit successfully can lead to claim approval or increased compensation after an unfair claim outcome.