Three Situations Where You Should Consider Filing A Lawsuit Against Your Property Damage Insurer
Residents of Volusia County pay high costs for homeowner’s insurance coverage. When property damages in Daytona Beach happen, you expect these policies to cover your losses. Unfortunately, it is not uncommon for claims to be disputed, delayed, or outright denied. The following details three situations where you should consider filing a lawsuit against the insurance company involved.
When To File A Property Damage Lawsuit
When it comes to homeowners insurance, Floridians pay some of the highest rates in the country. This is due to the high number of property damage claims that are filed each year as a result of tropical storms and hurricanes that pass through our area. Despite paying significant amounts of money for coverage that protects you against these and other unexpected events, it is not uncommon for insurance companies to either deny or dispute your claim.
As a result of these problems, Floridians also have a correspondingly high rate of legal actions filed against insurers. According to the Insurance Journal, these represent roughly two-thirds of all property damage lawsuits filed each year. The following are three common scenarios in which you should consider taking your insurance company to court:
- They failed to comply with the terms of your policy.
Insurance companies use complex language when writing policies. Reading through your coverage, you are likely to encounter numerous technical terms as well as detailed stipulations and policy exclusions. These often work in the insurance company’s favor, providing loopholes that allow them to deny or downplay claims. At the same time, they are required to comply with the stated terms of coverage, Failing to do so can entitle you to file a lawsuit against them.
- They act in bad faith.
Bad faith practices in settling claims are a common problem in the insurance industry and can entitle you to file a lawsuit against the company involved. This type of situation can happen with any type of policy but is particularly common with property damage claims. Examples of bad faith practices include providing inadequate investigations, requesting excessive or repeat documentation, subjecting you to lengthy delays, and refusal to communicate with you or make an effort to settle your claim.
- They breach their fiduciary duty.
Under the Florida Statutes, insurance companies owe a fiduciary duty to their customers. This means that they must act in their best interests, giving equal consideration to their needs as well as their own when underwriting coverage and in settling claims. This includes acting in an honest and trustworthy manner and disclosing all material facts relevant to the policy or a particular claim. When insurance companies and their representatives breach their fiduciary duty, they can be held liable in a lawsuit.
Let Us Help You Today
At Bundza & Rodriguez, we protect your rights when dealing with property damage insurers. To discuss your options in reaching settlements, which includes filing a lawsuit against the insurer involved, call or contact our Daytona Beach property damage attorneys online and request a consultation today.