Dealing with an insurance company can become incredibly frustrating, especially when you believe they’re not handling your claim fairly. Insurers sometimes act in bad faith, delaying, denying, or undervaluing valid claims without justification. When this happens, it may be time to seek legal help.
Attorneys handling bad-faith cases are skilled at recognizing the warning signs that your insurer isn’t playing by the rules, and they can help you fight back. In this post, we will traverse the key signs that indicate it’s time to hire a bad-faith lawyer.
Unreasonable Delays in Processing Your Claim
Insurance companies are mandated to process claims promptly. It may be a red flag if you’ve been waiting far too long for a response without any valid explanation. Repeated delays, requests for unnecessary documents, or avoiding communication are tactics some companies use to frustrate claimants into giving up or accepting a lower settlement.
When the delay starts feeling deliberate, it’s often a sign that legal action might be needed.
Denial of a Valid Claim Without Explanation
A sudden denial of a valid insurance claim without a clear reason or justification is a classic indicator of bad faith. Insurance companies must provide a legitimate explanation when denying a claim.
If your claim was rejected without an adequate reason or if the reason seems vague or unfounded, this could be a tactic to avoid paying what you’re owed. Legal intervention can help ensure that the insurer is held accountable.
Offering a Settlement That Seems Unusually Low
Receiving a settlement offer far below the actual value of your claim is another common sign of bad faith. Insurers may try to settle for less than your policy covers or undervalue the damages to save money. If the settlement offer doesn’t come close to covering your expenses, including medical bills, repairs, or lost wages, it’s time to consider legal assistance to fight for fair compensation.
Misrepresentation of Policy Terms
Some insurance companies may attempt to mislead policyholders about the terms and coverage outlined in their policy. This can include falsely claiming that certain damages aren’t covered or twisting the policy language to fit their narrative.
If you feel your insurance company is misrepresenting your policy terms to avoid paying, seeking legal help can safeguard your rights and ensure your policy is interpreted fairly.
Failing to Conduct a Proper Investigation
Insurance companies are obligated to conduct thorough investigations before deciding on your claim. If your insurer fails to investigate the claim properly or dismisses evidence that supports your case, this could be a sign of bad faith.
An inadequate investigation often results in wrongful claim denials or lowball offers, leaving you disadvantaged. Legal representation can ascertain that the insurance company conducts a proper and fair investigation.
Recognizing these signs early on can prevent you from accepting less than what you are entitled to. If you’re experiencing these red flags, seeking legal guidance can help secure your rights and get the reimbursement you deserve.