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Today’s topic is relevant for any homeowner who is dealing with an insurance claim: bad faith practices by insurance companies. What is bad faith, how can you spot it, and most importantly, how can you protect yourself? Stick around because by the end, you’ll have the tools you need to stand up to bad faith tactics and get what you deserve.
Let’s start with the basics. When you buy an insurance policy, you enter into a contract with your insurance company. In return for your premiums, they agree to handle claims fairly and promptly. Bad faith occurs when an insurance company acts dishonestly, delaying claims, or refusing to pay without a valid reason. This isn’t just unfair – it’s against the law. While most people aren’t aware of what to look out for to identify bad faith, myself and the attorneys at my firm have been fighting bad faith practices for years.
To make this even clearer, bad faith practices can take many forms. Let’s explore the most common red flags that you need to watch out for.
One of the biggest red flags of bad faith is unnecessary delays in processing your claim. If you’ve provided all the required information and the insurance company keeps asking for more or dragging their feet without explanation, this could be a bad faith tactic. They’re hoping you’ll get frustrated and give up or give in. Here’s a pro tip: always keep records of your communications, including dates and the names of people you speak with.
If weeks or even months go by without progress, it’s time to take action. Document the delays and consider consulting a lawyer to hold the insurance company accountable.
Another common tactic is offering a settlement that’s far below the actual value of your claim. For example, let’s say your roof was severely damaged in a hurricane, and the insurance company offers you just a fraction of what it will cost to repair it. This is a classic move to save money at your expense in hopes that you’ll accept it for the sake of saving time.
Don’t accept the first offer without consulting a professional, like our firm, who can help you assess whether it’s fair.
A common response from carriers is: ‘Your policy doesn’t cover this’ – even when it clearly does. An outright denial of a valid claim is one of the most blatant examples of bad faith. If you receive a denial, request a written explanation and compare it to your policy.
If the denial still doesn’t make sense, you have options. Our firm helps property owners combat denials to seek payment for covered damages.
Insurance policies can be confusing, and some companies take advantage of that. Misrepresenting what’s covered, using vague language, or selectively quoting parts of your policy to deny a claim are all signs of bad faith.
Remember, insurance companies have teams of lawyers – and so can you! If something doesn’t add up, it’s time to get help. You can contact our firm for assistance handling your claim.
If your emails go unanswered, your calls aren’t returned, or you’re constantly told the adjuster is ‘unavailable,’ this could be a deliberate strategy to wear you down. Many insurance companies respond a lot faster when they realize you mean business and are seeking professional help.
Now that you know the signs, let’s talk about how to protect yourself. First, always document everything. Keep copies of emails, letters, and even notes from phone calls. Things like the time, date, and name of the person you spoke with can be highly beneficial to your case.
Second, know your rights. Most states, including Florida, have laws that protect policyholders from bad faith practices.
Finally, don’t hesitate to get professional help. At Premier Property Law, we specialize in holding insurance companies accountable. We’ve seen it all, and we know how to fight for policyholders like you.
If you suspect your insurance company is acting in bad faith, don’t wait. Contact us at Premier Property Law for a no-cost consultation. We’ll review your claim, explain your options, and help you get the outcome you deserve. Our contact information is in the description below to schedule your consultation today.
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