When an insurer violates its own obligations

| Oct 10, 2018 | Bad Faith Insurance Claims

Florida homeowners facing damage from Hurricane Irma may also be struggling with their insurance companies. Unfortunately, some insurers might delay or deny payment for a legitimate claim. In some cases, this denial violates the terms in the company’s own insurance policy. When an insurance company fails to act in a reasonable manner during the processing, investigation or payment of a valid claim on a policy, the homeowner may have the right to pursue a claim for bad faith against the insurance company.

Given the position of trust that insurers hold, they have an obligation to act in good faith and deal fairly with insurance customers. Many customers have suffered significant losses to their family homes due to the devastation of hurricanes like Irma. In Florida, insurance companies are required by statute to deal fairly and honestly with those they insure. When they deny benefits that were supposed to be covered under an insurance policy, the policyholder may be able to file suit against the company for dealing in bad faith.

When a homeowner is struggling with their own insurance company, they should document how benefits were denied or unreasonably delayed. If an insurer fails to act to settle the claim promptly despite the submission of proper documentation, it may be violating its obligations under state law.

After a severe situation like Hurricane Irma, many homeowners may struggle to return to normalcy. An insurance company’s bad faith may add insult to injury, but homeowners don’t have to accept these types of violations. An insurance lawyer can help a client pursue bad faith insurance claims against an unfair insurer.