When you purchased your insurance policy, be it for fire, hurricane, storm and so on, you expected you would be covered without difficulties when the time comes. But this may not be the case; your claim may take forever. And while there may be a rational explanation for this, your insurer may delay your claim intentionally.
Here are two common reasons for this:
To get you to accept the first settlement
When you file an insurance claim, your insurance company will give you an offer, which, in most cases, is usually not a fair one. If you refuse the first offer, they may delay the process to make you tired of waiting and eventually accept the initial settlement.
To make more money in interest
Insurance companies typically invest some of the money paid in premiums in investment accounts. That way, they make money from interest. Thus, your insurer may delay covering your claim to keep the money in the accounts longer to secure as much interest revenue as possible.
It may seem like a small amount, but if they delay paying out several customers, they can make more money from interest growth.
Can you speed up the process?
It can be tricky to speed up a process that’s being delayed deliberately. However, your insurer may use logical excuses to cover up their tactics. For example, they may state you have not submitted all the needed documents, or they can’t reach out to you.
Thus, ensure you gather all documents and submit them on time. You should also respond to calls or text messages immediately. That way, you make it difficult for them to cover bad faith insurance.
If your insurance company is delaying your claim, obtain adequate information to know the steps to take to protect your rights.