Insurance Bad Faith

Posted by on Jun 20, 2015 in Insurance | 0 comments

Often times, when we experience a natural disaster or an accident, our concern is not with material objects, but with the safety of ourselves and our loved ones. We expect the objects that were damaged to be taken care of, because they are insured. Unfortunately, during these trying times, insurance companies fail to live up to their obligations to provide coverage that alleviates this burden and allows victims lives to return to their normal routines as soon as possible. When this occurs, it is called Insurance Bad Faith.

Some examples of insurance bad faith are: unnecessarily delaying a claim, failing to properly investigate a claim, not providing full coverage, and improper valuation of damaged property.

An insurance company can unnecessarily delay a claim if the claim takes an unreasonable about of time to be processed and fulfilled. All insurance claims take time to be processed, however at times the duration of this period where a claim is delayed can become excessive, making it difficult for the victim to continue with their lives. If an insurance company cannot provide sufficient reasoning for delaying a claim, they are delaying it unnecessarily and in bad faith.

If an insurer fails to properly investigate a claim, the claim could subsequently be delayed or denied when it should have been immediately covered. If a claim is denied that should have been fulfilled, the victim then has to cope with additional expenses that they were relying on their insurance to cover. This financial burden is unnecessary and should be rectified.

When insurance bed faith occurs, it can add additional stress and trauma to an already terrible situation. Those who experience this are entitled to seek legal counsel to get the coverage they need.

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