What to Do if You Suspect Insurance Bad Faith

By on 8-05-2013 in Insurance Bad Faith

Americans rely on their insurance companies to negotiate claims in good faith, making sure that insured people receive correct compensation for any damage that is covered by their policy. However, when insurance companies refuse to investigate damaged property, such as a house or a vehicle, or claim that the damage is not covered under a policy, the insurance adjuster may be acting in bad faith.

According to the website of insurance attorneys from Dallas, TX, Smith Kendall, PLLC, insurance companies across the country attempt to save money by cutting corners, taking extended periods of time to reach a settlement, or leaving homeowners without a settlement until they are forced to fix their properties themselves. In the event of a natural disaster, such as a hurricane, insurance companies might be unwilling to hold up to their end of the bargain.

If you believe an insurance company is acting in bad faith, you may want to put your grievances into writing and send the letter to your adjuster. Sometimes an accusation of bad faith will spur an insurance company into changing their position and providing correct compensation for the damages. Insurance companies that adopt aggressive positions toward claimants can often bully their customers into under-settling or giving up completely on their claim. Don’t allow insurance companies to prevent you from receiving due compensation.

Winning a bad faith lawsuit, especially against a large insurance company, is a very difficult prospect. If your insurance company has been acting in bad faith, you should broach the issue with your adjuster to see if the company will change its position and award you a settlement. If the letter fails, you may wish to contact an attorney experienced in bad faith lawsuits who can help you win punitive damages in court as recompense.

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