Common Examples Of Bad Faith Insurance Practices
You made the responsible decision to insure your home or business so it is protected in the event of fire, hurricane, or other natural disaster or accident. Unfortunately, insurance companies are often hesitant to provide the coverage you have purchased over several months, or even years. Insurers prioritize their own revenue and bottom line, and are not concerned with providing the coverage that you justly deserve. Below, our Daytona Beach bad faith insurance claims lawyer outlines some of the most common practices insurers use to deny and reduce claims.
Unreasonably Denying Acknowledgement or Reply to a Claim
Insurance companies must acknowledge they have received your claim within 14 days of receiving it. Insurers sometimes do not comply with this law in the hope that you will become frustrated and tired by the process and give up. If you have submitted a claim and the required amount of time has passed and you still have not heard back from the insurer, contact a lawyer who can force the company to proceed with your claim appropriately.
Requiring Additional Documents Not Required by Your Policy
You may have read your insurance policy very carefully, making sure you safely stored and retained any document required when making a claim. However, the insurer may tell you they need additional documents not mentioned in the policy. The insurer may also know that certain documents are very difficult for you to retrieve at this point. It is critical that you know what documentation you are required to submit, so you can fight back against these unfair requests.
Offering Lowball Settlements
One of the most common ways insurers try to reduce claims is to offer lowball settlements. If you accept an offer that is not enough to fully cover the costs of your repairs, you cannot return to the insurer for more coverage in the future. Before accepting any offer, it is important to review it with a lawyer to ensure it is fair.
Alleging Criminal Activity
You are covered by insurance if your property is damaged due to a natural disaster or accident. If you intentionally damage your property, on the other hand, the insurer has a valid reason to deny coverage. Insurance companies are keenly aware of this fact and so, they may argue that you intentionally damaged the property. For example, if your business burned down because of a fire, the insurer may argue that you set the fire yourself to collect on the insurance company. It is critical to fight back against these claims to get the full coverage you need.
Our Bad Faith Insurance Claims Lawyer in Daytona Beach Can Assist with Your Claim
Insurance companies use many tactics to reduce and deny claims, and they are not always obvious. At Bundza & Rodriguez, our Daytona Beach bad faith insurance claims lawyer can advise on when an insurer is acting unfairly and will hold them accountable for paying the full coverage you are entitled to. Call or text us now at 386-252-5170 or chat with us online to request a free consultation and to learn more.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.70131.html
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0624/Sections/0624.155.html
