Five Reasons You May Need to Sue Your Insurance Company for Bad Faith

insurance company

Due to the intangibility and general nature of insurance, you may not discover how unhappy you are with a ‘product line’ or insurance company until long after your grace period has expired (and in that case, you will probably still not get all your money back). In most cases, this is not like a retail item that you discover is a poor fit and decide to return for a refund at a customer service counter with few questions asked. Most of us purchase insurance because it is either required by the state we live in or it is highly recommended, meaning that if you don’t have it you could find yourself in a state of utter ruin.

The process of buying and owning insurance may be completely pleasant, and this could continue for years while you enjoy the basic give and take of paying premiums and dealing with customer service representatives; however, this positive perception of the insurer may come to a screeching halt once you file a claim, and this could be due to adjusters giving you a hard time, or even worse, paying you no attention at all. The term ‘bad faith’ may not be something you were even familiar with until being forced to recognize it via the reluctance of an insurer to pay a claim.

Here are five signs that you may need to sue due to bad faith:

  1. No action at all on the claim – while delays and denials can be disturbing, a complete lack of investigation can be most unsettling of all, especially in comparison to how quickly adjusters set to work when they are motivated to settle a case.
  2. Delays, delays, delays – the insurer may give you a variety of different excuses for delays, some of which seem unreasonable, and perhaps even insinuating that they are investigating you for fraud. This is one of the biggest red flags in bad faith insurance claim issues.
  3. Low-ball offers – this is extremely common as so many policyholders try to deal with the insurer on their own, without the help of an experienced attorney, and find themselves worrying if they don’t take the first offer extended, they may not receive anything at all.
  4. Excessive requests for documentation – this can actually be a form of intimidation by the insurer as they ask you to run around collecting so much paperwork (much of it which may be difficult and time-consuming to put your hands on) that you just give up on the case completely, without receiving any settlement, or by accepting a very low one.
  5. Unreasonable denials – at this point, you need legal help to defend your claim! The insurance company may choose any host of reasons to deny your claim, including misrepresenting the wording in your policy, asserting that there were changes which make the claim valid, and more.

If you need help reviewing your insurance policy, or if you suspect your insurance company may be denying your claim in bad faith, contact the attorneys at the Bolender Law Firm.  If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!

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