Your home is your castle. Not only do you have a tremendous amount of time, money and effort invested in your property, but you also feel comfortable there. Similarly, if you own a business, keeping it in good shape is essential for your livelihood. To protect both your home and your business, you have an insurance policy.
Your insurance policy is a binding contract between you and the insurer. In exchange for your regular premiums, your insurer agrees to cover certain damages. Unfortunately, because they have an eye on profits, insurers sometimes delay claims or deny them altogether. You should not, however, have to put up with an insurer that acts in bad faith. If you notice any of the following warning signs, you may have a valid claim against your insurance provider:
- Slow processing
Your insurance provider expects you to pay premiums on time. The company may not extend you the same courtesy, though. If your insurer delays processing or paying your claim, it may be acting in bad faith.
- Inadequate investigations
Before paying insurance claims, insurers typically investigate. Regrettably, investigations are not always complete. On the contrary, an insurer may deny a claim after conducting only a minimal investigation. Doing so, though, is likely evidence of bad faith.
- Claim denials
There are plenty of legitimate reasons for insurance adjusters to deny claims. For example, the damage your property sustains may fall outside your policy’s terms. Nonetheless, if your insurer uses an illegitimate reason to deny your claim or provides no reason at all, you likely need to investigate whether your insurer is replacing fair dealing with bad faith.
Discovering your insurer is acting in bad faith is likely to put a bad taste in your mouth. Fortunately, you may not have to be stuck in an untenable situation. By understanding what typically constitutes bad faith, you can better plan for recovering fair compensation from your insurer.