What is bad faith?
Insurance companies are bound by the “covenant of good faith and fair dealing” in dealing with their insured in a property damage claim. This means that insurances companies are not allowed to operate with their own interests in profit ahead of your justifiable needs for payment. Insurance companies can partake in bad faith practices in numerous ways, but most commonly bad faith actions include unreasonably long delays in making necessary payments, improper handling of your claim, or outright deception regarding policy guidelines.
When insurance companies act in bad faith they are usually hoping that you will drop your claim and give up or go away. In discouraging legitimate claims, a shady insurer is able to grow their bottom line. For this reason it is important to contact an attorney if you feel that the insurance company or their third party adjusters are acting in bad faith. These companies need to be held in check at every possible point in order to ensure that any illegal practices do not become standards.
Bad faith laws also greatly differ from state to state. If you have any further questions give us a call or email to find out how we can help you today.
What actions are illegal for the insurance company dealing with property damage?
Insurance companies do not make their money from paying out claims. Even if your claim appears to be legitimate and fair, the insurance company may make receiving your owed payments difficult. For this reason, it is illegal for an insurance company to use certain practices that are meant to delay or decrease potential payments. These illegal actions include withholding payments for reasonable claims, requesting excessive interviews and documentation in order to delay, seeking unfair settlements for owed payments, and other actions meant to delay or decrease payouts.
If you feel the insurance company has been excessively difficult to deal with in handling your legitimate claim, do not hesitate to contact a qualified attorney. At Doyle Dennis LLP Trial Lawyers we can aide you in dealing with difficult insurance companies.
Is there a time limit/statute of limitations for a claim against insurance companies?
The most likely answer to this is yes, but it differs from state to state and depending on the nature of your claim. The best way to find out the answer to this question is to contact an attorney. Each case is unique and differently laws may apply.