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To know if you have a bad faith insurance claim, you must demonstrate that the insurance company unreasonably denied or delayed your claim, did not provide an adequate investigation of the validity of your claim, presented an unfair lowball offer, or misrepresented their responsibility to pay out according to policy, coverage, and damages. You may also be able to file a claim if you can prove that they used abusive tactics.
There are several elements that play a role in determining if you have a bad faith claim. Here’s what is important to know.
Orange County Bad Faith Insurance Lawyers
An unreasonable delay occurs when the insurance company has had your claim for some time and does not act on it. State law dictates how long the insurance company has to settle the claim.
In California, for example, the insurance company must acknowledge the claim within 15 days, investigate and decide on whether or not to accept it within 40 days, and then issue payment within 30 days of accepting it, under the California Insurance Code.
Unreasonable denials occur when the insurance company has valid evidence of the loss and its responsibility for it, and then denies the claim.
Insurance companies must investigate the claim properly. If they fail to thoroughly and fairly investigate the claim’s validity and then deny the claim, that is also an example of bad faith. The insurance company must act reasonably in validating the claim.
Another type of bad faith act is misrepresentation. This may apply to misrepresenting what the policy covers or does not cover. It may include denying coverage of a person covered by the policy or access to benefits. It may also include situations in which the insurance company asserts exclusions that preclude payment, which may be inaccurate or not fairly presented.
You may be able to prove that the insurance company was engaging in abusive tactics for the way they acted, spoke to you, or treated you. This could include demonstrated threatening behavior or being outright dishonest. You may be able to prove this through messages, phone recordings, or written statements sent to you in emails or texts.
One of the most common types of tactics insurance companies use to minimize compensation claims is to present a lowball offer. That in itself is not a bad faith move unless you can demonstrate they were clearly deceitful in providing accurate compensation.
You can also seek claims like this if the insurance company refuses to pay for documented losses and instead offers a value that is far lower than the actual value of the claim.
In situations where you believe an insurance company acted in bad faith, work with a personal injury attorney to demonstrate it. That will allow you to clarify any limitations and requirements for seeking a bad faith claim.
You will need to have evidence to support your claims, and an insurance company has more resources and tools to work against you. By hiring an attorney, you level the playing field and make sure they pay attention to your claims.
Contact a bad-faith insurance claim attorney to discuss your case openly and with privacy. You will need to act quickly to protect your right to seek compensation.