Bad Faith Insurance Claims

Bad Faith Insurance Claims

The recent and devastating Colorado fires highlight some potential legal issues that arise between homeowners and homeowners insurance companies. Most private resident homes in the U.S carry homeowners insurance policies since most mortgage companies require homeowners to maintain minimum levels of the homeowners insurance.

Even if a house if paid off, it is a very good idea to have homeowners insurance. Homeowners insurance protects against significant damage to your home or within home. A large number of damage causing events are covered by homeowners insurance, but not all. Sometimes, an insurance company will deny a claim or part of a claim based on the cause or type of accident or damage. In some cases, this is strictly noted in the agreement, such as homeowner negligence. In other cases, the insurance company wrongly denies a claim and the coverage that the homeowner has been paying for every month is not honored. In legal terms this is called "bad faith".

Insurance companies frequently deny claims. Sometimes when an insurance company acknowledges that a claim or lawsuit is covered by the policy, they underpay the claim. Courts try to prove whether or not an insurer is acting in bad faith by determining if their conduct is reasonable.

Insurance companies have a duty to be as fair as they can be to the insured. All contracts have promises that they will not act in bad faith towards their clients. However, there are instances where a homeowner’s insurance claim made by a policyholder is valid but an insurance company denies the claim. Insurance companies could:

In bad faith insurance issues, time and money are of the essence. A Bad Faith Insurance Lawyer can help you proceed with a bad faith claim. Bad faith insurance lawyers can handle these issues with your insurance company and may get you the compensation you are entitled too, along with possible punitive damages.

If you are having bad faith issues with your insurance company, Attorney Search Network can refer you to a bad faith lawyer. Contact Attorney Search Network today for help with your bad faith insurance claim.

If you have any questions about the information provided above, please contact Attorney Search Network.

Contact Attorney Search Network for a Lawyer Referral to an attorney with Bad Faith Insurance Claims experience.

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