What is “Bad Faith Insurance”?

Have you submitted a legitimate claim to your insurance company, only to have it denied?  Are you left scratching your head, frustrated, wondering why they denied your legitimate claim and what you should do next? If so, you may have been the victim of bad faith insurance.  When you submit an insurance claim to your insurance company, they have a duty and obligation to act “in good faith.”  Bad faith insurance is when an insurance company denies a legitimate claim without a valid reason for doing so.  Victims of bad faith insurance may have the grounds necessary for a bad faith insurance case that can recoup not only the value of the original claim, but possibly more depending on the case and state in which the case is submitted.

A bad faith insurance case may be the result of a number of things: the insurance company wanted to save money at the expense of your claim, insurance adjuster error, failure to conduct a reasonable investigation into the insurance claim, insurance adjuster oversight, lack of understanding of policy language, and more.  Whatever the reason, if you think you have been the victim of bad faith insurance, it is important to speak to an experienced attorney who can help you navigate the difficult and often confusing process of a bad faith insurance lawsuit.  Negotiating a bad faith insurance case can take weeks, months and even years, depending on the case.

To give your lawsuit the best chance of success, it is important to document all interactions and communications with the insurance company.  Keep copies of everything, along with dates and times, to thoroughly document their bad faith actions.  If you speak with the insurance company over the phone, write down the date and time as well as a summary of the conversation and how the adjuster acted in bad faith.  Further, anytime an adjuster makes a decision, denies a claim, or takes any other action against your claim, ask for written documentation of the action and the reason for action.  Consult an experienced lawyer as soon as possible so that they can help you begin to take action against the insurance company.  Sometimes, something as simple as a letter from your attorney, along with documentation of bad faith practices from your detailed notes will be all it takes from the insurance company to see that you are not going to be pushed around.  Other times, litigation may be necessary.  Fortunately, every state has an insurance board to protect against bad faith our team at Alcock Law is knowledgeable and experienced in bad faith insurance claims.  We only take claims on a contingency basis – meaning you only pay us if we win your claim.  If you have been the victim of bad faith insurance, please call us as soon as possible to get the process started on your bad faith insurance claim.