bad faith insurance

5 Warning Signs of Bad Faith Insurance

When you sign up for insurance, whether it’s for your car, home, or another type, you expect the insurance company to help when you need to use your policy. Legally, insurance companies are required to act in good faith with their customers, meaning they must treat their clients fairly and honestly. However, some insurance companies act in bad faith to protect their profits instead of their clients, meaning they are not following the laws of the state nor are they treating their clients fairly. To determine if your insurance company is acting in bad faith, you should know about some of the tactics they might use. Here are 5 warning signs of bad faith insurance:

1. Denying a Claim Without a Legitimate Reason

deniedAlthough insurance companies can legally deny insurance claims, they aren’t always denying them for a legitimate reason. Some insurance companies may deny your claim and hope that you won’t continue to pursue the claim. If your insurance company denies your claim without providing a proper reason why the claim was denied, it could be a warning sign of bad faith.

2. Not Conducting an Adequate Investigation

Another sign of bad faith insurance is when the insurance company does not conduct a thorough investigation. This could include not conducting the assessment in a timely manner, delaying the investigation, not analyzing specific issues, or not communicating with relevant parties. Also, the insurance company may start investigating, but they may not complete the process, which is also considered bad faith.

3. Unreasonable Demands for Documentation

lawyer speaking with a clientWhen you file a claim, your insurance company will require that you file certain documentation that’s related to your case. If the insurer starts asking you for documents you don’t think are relevant to your case, they may be trying to complicate the case in hopes you will give up. Plus, if they make other unreasonable demands, they may be acting in bad faith.

4. Poor Communication

Poor communication is another warning sign of bad faith insurance. If you are having a hard time getting in touch with anyone at your insurance company, they might be trying to give you the runaround. You should be able to reach out to your insurance company and have them respond to you in a timely manner, but if they aren’t responding to your calls, emails, or other forms of communication, it could be a warning sign.

5. Delaying Payment on a Valid Claim

people negotiating on a claim

Delays in payment are a common tactic of bad faith insurance. If there are no valid reasons for the delays, the insurance company could be hoping you give up on your claim or accept a lowball offer because you need a payout. If you have come to an agreement on how much your compensation is and the insurance company still doesn’t pay or flat out refuses to pay, you should contact an attorney.

These are just some of the warning signs of bad faith insurance. If you believe you are a victim of bad faith tactics, contact one of our experienced attorneys today to discuss your options.

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