3 Mistakes to Avoid with a Bad Faith Insurance Claim

When hurricanes hit, many home and business owners are left with thousands of dollars’ worth of damages, yet their insurance companies can be unwilling to provide immediate assistance. As time passes, some of these property owners receive late payouts, undervalued compensation, or even no payment at all. According to the terms of a person’s insurance policy, this wrongful payment may count as insurance bad faith. However, taking legal action can be confusing, and it’s important for claimants to remember some crucial mistakes to avoid when handling their claims.

Common Insurance Claim Misconceptions

A property owner filing a bad faith claim should make sure to avoid the following misconceptions, which could damage his or her bad faith claim or prevent the person from receiving the kind of coverage he or she deserves.

  • Late payment is at least better than receiving no payment at all.

Insurance companies are responsible for providing policyholders with coverage along a reasonable timeline. If payment comes excessively late, there may have been additional expenses a policyholder faced due to not receiving his or her payout when necessary.

  • Denied claims are the fault of the policyholder.

In some cases, insurance companies may deny claims on a faulty basis. This increases the company’s profits, while leaving policyholders without the coverage they badly need. Not all denials are due to paperwork or documentation errors on the policyholder’s behalf, however, and these wronged individuals should consider holding their insurers accountable when their claims are wrongfully denied.

  • You don’t need a lawyer.

Insurance companies have impressive legal teams working to protect their interests in a bad faith case. Thus, a legal advisor working with a policyholder on a bad faith claim can not only allow the claimant to focus on rebuilding his or her property, but he or she can also provide crucial services to strengthen an argument against the insurer.

Contact Us

If your insurance company hasn’t provided you with the timely coverage you deserve according to your policy, you may be entitled to pursue a bad faith insurance claim against your insurer. For more information about the process involved in filing a bad faith claim and how we may be able to help, contact the attorneys of Williams Hart today at (713) 352-0031.

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