Bad Faith Lawsuits: When Action is Required to Get Rightful Compensation

Insurance companies are required by law, in every state, to act in good faith when you submit a claim. They cannot disregard their responsibility to fairly investigate your claim, and they certainly cannot deny you rightful compensation. Regardless of the circumstances, insurance providers must do their best to help settle your claim in an accurate and timely manner. Acting in bad faith refers to an insurance company’s lack of honesty when dealing with your claim. Insurance companies act in bad faith when they fail to meet their obligations while handling your claim, and it is illegal. Bad faith claims range from disputing coverage to outright negligence when settling your claim. Here are some common reasons lawsuits are filed against bad faith claims:

Examples of Insurance Acting in Bad Faith

  • Denying you coverage without a valid reason
    • Example: your insurance company denies a reasonable claim of windstorm damage without any clear explanation
  • Failing to disclose limits to your policy
    • Example: withholding or selectively sharing information about your policy
  • Offering you a settlement that is lower than what is in your policy
    • Example: your policy covers up to $100,000 in personal property, but the insurance company only offers to pay $40,000.
  • Impeding policy payouts from being distributed in a timely manner
    • Example: an agreement has been made, but you are still waiting for the money after two months
  • Refusing to pay your valid claim
    • Example: the insurance company refuses to pay your claim of water damage after a tree fell on your home during a storm
  • Failing to properly investigate your claim
    • Example: an insurance representative visits your property and hastily concludes that the damages to your home were present before a natural disaster struck
  • Distorting the policy language or the law
    • Example: threatening to bring charges of insurance fraud against you for honest mistakes, such as misremembering a specific date, misspelling an address, or mixing up telephone numbers
  • Obstructing communication within a timely manner
    • Example: not returning phone calls, emails, or letters
  • Ignoring your demands for communication and documentation
    • Example: consistently “forgetting” to send documentation you have requested on multiple occasions
  • Delaying the process of making decisions on your claim
    • Example: making multiple excuses as to why your claim has still not been processed or will not be processed for some time

Homeowners affected by Hurricane Harvey and the aftereffects of flooding should be aware that they have support against unethical insurance practices. If you have experienced any of the examples above while making a claim with your insurance company, you may be entitled to file lawsuit.

Common Misconceptions

  1. Delayed payments or smaller settlements are better than not getting anything from your insurance provider.

This is not fair to you or your loved ones. The policy you purchased was an agreement between you and your provider, and you deserve to get the full amount that is owed to you.

  1. The insurance company rejected your claim because of a mistake you made when filing your claim.

After Hurricane Harvey hit our coast, insurance companies were inundated with thousands of claims. They are tempted to save money by lowering fair settlements or even ignoring your claims. Do not accept anything less than what they rightfully owe you.

  1. You do not need an attorney.

When acting in bad faith, large insurance companies will not hesitate to use all their resources in defending a lawsuit. Having an experienced attorney on your side, especially one who is familiar with fighting immoral business practices, can make a huge difference. We can help you return to a sense of ease as we take the battle off your hands and utilize our extensive resources to defend you from corporate abuse.

What We Need to Help You

  •      Photos and videos of any damage reported in your claim
  •      Any estimates provided to you by the insurance company or a third-party contractor
  •      The specific terms of your policy
  •      Receipts for temporary repairs, living expenses, and work done on the property

Lawsuits resulting from an insurance company’s negligence, such as making a bad faith claim, will result in a settlement, arbitration, or a verdict. It is important to note that every lawsuit has different factors, and the outcome of litigation is not predictable. That being said, Williams Hart has experience forcing insurance companies to honor their commitment to your policy.

Getting help early in the process of dealing with bad faith claims is important. You need a dedicated team with sufficient training, compassion, and knowledge of the subject. We are part of the Gulf community and on your side. Any Texan that has been wrongfully treated by their insurance company has a chance to make it right through us. Contact our team today and learn more about how we can help you in this troubling time. You can call us at (713) 352-0031, chat with us online, or send us an email.

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