Bad Faith Insurance Claims

Chandler, Arizona

When you purchase insurance, you trust that a company will deal fairly with you and honor your claims. Under the law, insurance companies are required to honor your policy. However, sometimes insurance companies handle claims poorly. They may fail to pay your claim in a timely manner. In other cases, insurance companies fail to properly investigate claims. Many insurance adjusters now use computer models to estimate a claim, and these models often put the insurance company’s bottom line above serving the consumer. The best way to protect yourself is to know your policy; know the value of your damages, and understand insurance bad faith practices.

Here are some common forms of insurance claims bad faith:

• Insurance claim delays. Accepting an insurance’s low initial offer can result in prompt payment, but this comes at a cost. Some consumers who fight their insurance company’s initial offer may find themselves facing delays. For consumers who need repairs on their homes or cars, delaying payment is a tactic that some insurance companies may use to strong-arm consumers into accepting a smaller, but faster payment. A qualified insurance claim lawyer can assist you if you feel that your claim is being delayed unreasonably or is being delayed because you have chosen to fight back. Insurance companies also understand that poorer families cannot afford to wait if their house has burned down or if their only mode of transportation is totaled. Insurers may use this knowledge to try to pay less. However, your ability to fight back will depend on the state in which you live. In some states, insurance companies are permitted to put off settling claims indefinitely. Even so, an insurance claims lawyer may be able to take the insurers to court if they fail to honor their obligations to you.

• Poor investigations. Some insurance companies also fail to perform proper investigations or assessments of damages. They may rely on the fact that the average person doesn’t know the value of certain types of damages or their rights under the law.

• Low-ball settlements. If an insurance adjuster offers you a settlement that is much lower than what you feel you deserve; the adjuster must provide clear documentation outlining his or her reasoning. The insurance company must explain to you how they came to the amount. In some cases, they base this amount on incorrect, or wrong information. If they fail to take into account your corrections, you may have a bad faith insurance claim on your hands.

According to Investopedia, insurance bad faith occurs when an insurance company fails to pay your claim at all or fails to settle in a reasonable time frame. It can also occur if an adjuster lies about your policy’s contract.

If you are having difficulty making an insurance claim or are having trouble getting the recovery you believe you deserve, you have important rights under the law. The lawyers at the Attorneys For Freedom law firm have decades of experience representing people in Bad Faith Insurance Claims. To schedule a Strategy Session to discuss your Bad Faith Insurance Claim, contact our law firm 24/7/365 by calling 480-755-7110 in Arizona and 808-647-2423 in Hawai’i.