What is a Bad-Faith Claim and How Can it be Avoided?
Unfortunately, bad faith claims can happen to anyone at any time. In the United States, insurance companies are required under law to operate in good faith and fairness when dealing with their customers due to the type of contract that is created in the insurance coverage relationship. As insurance customers, we always expect and hope that the companies that insure our homes, cars, and other property are working in our best interest and doing their due diligence to get to the true cause of our claims. However, this is not always the case. At Alexander Law Group, PLC, we are here for you when your insurance company lets you down. If you are certain they did not act in an ethical or truthful manner, we are here to help you get the benefits you deserve.
What’s a Bad-Faith Claim?
In a bad faith claim, insurance companies make a finding on a claim that is unreasonable and/or downright wrong due to the facts of the case. According to FindLaw, bad-faith claims generally require the policyholder to prove two things: claims due under the policy were denied and the reason for denying benefits was unreasonable. Your insurance company can break the good faith that they are contractually obligated to keep with you if they do either of these. Bad faith can be found in both the investigation and claims-denial process. The thing about bad faith claims is that it is never just black and white. The determination in bad-faith claims are set in legal precedent. This is why it may be difficult for you to help yourself in these situations without legal counsel. A seasoned attorney can help you determine if this is first or third party bad faith. With legal help, they can investigate whether or not a full investigation has been completed on your behalf.
How can bad-faith be avoided?
Making sure your insurance company does not act in bad faith when handling a claim against you can be difficult. One thing that we suggest during your claims process is to keep your own documentation and records of events. You should work closely with your adjuster, but be vigilant if they do not follow through on the investigation in a timely and thorough manner. Another way to know if your insurance company did not follow through on their contractual obligation is to make sure you are familiar with all of the information in your contract. Read over the fine print and clauses to see what you and the company are both legally obligated to do.
Get Help Today
If you believe you have been the victim of bad-faith claim handling by your insurance company, you need to seek legal help immediately. Alexander Law Group, PLC is familiar with fighting for the rights of our clients with insurance claim errors. Don’t leave your insurance claim up to chance. You have rights as an insurance customer. Give us a call today at (804) 271-1969 to start the investigation into your possible bad-faith claim. You can also complete our online contact form to have someone reach out to you as soon as possible.