What Constitutes a Bad Faith Insurance Claim?
When you file an insurance claim, you expect your insurance company to act in good faith, meaning they should handle your claim fairly and promptly. While this is often the case, there are times when an insurance company may engage in bad faith practices.
If you believe your insurance company is acting in bad faith, consulting with a Boca Raton personal injury lawyer is essential. Attorneys can help you gather evidence, negotiate with the insurer, and pursue legal action if necessary.
Delays, Underpayments, and More
A bad faith insurance claim occurs when an insurance company fails to uphold its contractual obligations to its policyholders. This means the insurer is not acting in a manner that a reasonable person would expect, given the terms of the policy.
- Unreasonable denial of a claim. If your insurance company denies a legitimate claim without a valid reason or fails to provide a clear explanation, it may be acting in bad faith.
- Unjustified delays. Insurance companies are expected to process claims in a timely manner. If there are excessive or unreasonable delays in handling your claim or making a decision, this may constitute bad faith as such delays can severely impact your financial stability and well-being.
- Underpayment of a claim. Offering a settlement that is significantly lower than what you are entitled to under your policy is another example of bad faith. Insurers might attempt to undervalue your claim to minimize their payout, even if your losses are much greater.
- Failure to investigate. Insurers have a duty to thoroughly investigate claims before making a decision. If an insurance company fails to conduct a proper investigation or disregards crucial evidence, it may be acting in bad faith.
- Misrepresentation or deception. Providing false or misleading information about your coverage or the claims process is problematic, such as misrepresenting the terms of the policy or failing to disclose pertinent information.
- Refusal to communicate. When an insurer fails to respond to your inquiries or provide necessary information regarding the status of your claim, this can be a form of bad faith. Effective communication is essential for resolving claims fairly and promptly.
Essentially, a bad faith insurance claim occurs when an insurer fails to meet its obligations.
Assessing the Details of Your Situation
As soon as you begin working with a Boca Raton personal injury lawyer, they will evaluate the specifics of your case to determine if the insurer’s actions meet the criteria for bad faith. They will review your policy, communicate with the insurer, and provide a clear assessment. Next, your attorney will gather necessary documentation and negotiate on your behalf. If negotiations fail, a lawsuit against the insurance company could be an option.
Are you struggling to secure fair compensation and believe an insurance company is negotiating in bad faith? By understanding your rights and hiring the lawyers at Leifer & Ramirez, you can obtain the compensation and justice you deserve after a Delray Beach or Deerfield Beach accident. To have a conversation with a talented legal professional, call 561-660-9421.
