Pursuing a Bad Faith Insurance Claim


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When an insurance company has denied coverage, is unwilling to provide a settlement and similar matters, an insurance company may be involved in bad faith claims. This means the carrier is attempting to get out of providing entitled monetary compensation for a policy that has coverage of the damage caused by the incident.

If a home has been flooded, and flood coverage exists with the policy, then the company should supply compensation to repair the damage. However, some insurance companies deal with these situations by denying the settlement, not being available for communication and being so difficult the policy holder may cease contact.

For the victims of insurance companies that practice bad faith, these situations are worse than the damage itself. The persons attempt to contact time and again with little to no results. They are unable to get a straight answer other than a denial. These individuals cannot get the settlements they need through the insurance company. This means that additional help is necessary. A lawyer well versed in insurance companies that practice bad faith claims is necessary and crucial in ensuring that a monetary settlement is provided when the victim is entitled to the compensation. If, however, the claim is invalid, then it is better to know why.

Bad Faith Practices

When an insurance company does not want to pay or decides to attempt to keep settlements from persons entitled to monetary compensation, they engage in bad faith practices. These may be observed through phone calls that never reach a person, communication inquiries that do not provide the needed information, denials for legitimate claims, denials with no reason given even when someone has been talked to and similar paths. When the carrier behaves in one of these manners, it is difficult to get through to someone that may assist with the coverage issue and damage. This means that a lawyer may need to be contacted for support.

Communication with an adjuster usually provides little insight into whether a settlement may be offered. Additionally, if an offer is made, it may be far less than is reasonable or fair. This may be to appease a policyholder so that something is accepted even if it is not enough to repair the damage. However, when these companies engage in these bad faith practices, it may not be enough to keep a person on insurance from seeking legal assistance. It is imperative that a lawyer is contacted so that even if the insurance company is engaging in bad faith practices, legal representation may increase the chances of obtaining a reasonable settlement exponentially.

Pursuing a Claim

In order to pursue a claim due to bad faith practices, it must be determined that there is no legitimate or valid claim or that the company is denying or refusing to communicate so that it may get out of a settlement. If the claim is not valid, pursuing action becomes meaningless. This then leads to a cessation of action on behalf of the policyholder. However, if the claim for compensation due to the insurance coverage damage is valid, it is crucial to use all means necessary to obtain a reasonable and fair settlement. If no contact can be accomplished with the insurance agency by the policyholder, it may be time to hire a lawyer to speak to the employees or managers for him or her.

Once contact has been established, the policyholder must ensure all evidence that the claim is valid is available for presentation. Then, an offer should be provided by the company. If the offer is not enough to cover the damage or not as specified in the policy, it is possible the carrier is trying to only give enough to stop contact and avoid from a lawsuit. It is after no further negotiations can be accomplished that a lawyer versed in insurance claims should be hired to assist with the rest of these situations. This legal professional may be enough pressure to cause the offer to increase. If he or she is not intimidating enough, a claim through the courts with litigation may be the next necessary step.

Pursuing Bad Faith Insurance Claims with a Lawyer

The lawyer hired may determine that bad faith practices have been plaguing the victim of the damage throughout the situation. He or she then will compound the evidence and, if necessary, acquire witness statements. A letter is often drafted to the insurance agency then, and either an offer is made or the mater goes to the courts.


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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.

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