When you buy insurance, you expect the company to be there when something goes wrong. Whether it’s a car accident, house damage, or a health emergency, you count on your insurer to help. Sadly, some insurance companies don’t play fair. Instead of helping, they use tricks to avoid paying your claims. This is called bad faith.
If you’ve ever had a claim delayed or denied for no good reason, you may have been a victim of such tactics. In these cases, it’s important to speak with an insurance bad faith lawyer from Sandstone Law Group. A lawyer can help you understand your rights and fight for the compensation you deserve.
What is a Bad Faith?
Bad faith happens when an insurance company does not deal honestly and fairly with its policyholder. Every insurer has a legal duty to handle claims in a reasonable time and in a fair way. But when they delay, deny, or underpay a valid claim without good reason, they are acting in bad faith.
According to a report by the National Association of Insurance Commissioners (NAIC), there are thousands of reports about bad faith issues from insurance customers. Top on this list include claim handling delays and denials. These numbers show that bad faith is a real problem that affects many people.
Common Bad Faith Insurance Tactics
Offering Lowball Settlements
One trick insurers use is offering a very low payment, far less than what your claim is worth. They hope you’ll accept the offer quickly without asking questions or getting help. This can leave you with unpaid bills or repair costs.
Failing to Conduct a Proper Investigation
Insurance companies are supposed to investigate your claim properly. But some skip important steps or ignore evidence to save money. They may reject your claim based on incomplete or rushed reviews.
Delaying the Claims Process
A common bad faith tactic is to delay your claim for no valid reason. They might say they need more documents or more time, even when you’ve provided everything. This tactic is used to pressure you into giving up or accepting less money.
Unjust Denial of Claims
Sometimes, insurers deny claims that are clearly valid. They might give confusing or unclear reasons. Or worse, they may give no reason at all. This forces you to go through long appeal processes or pay out of pocket.
Unreasonable Denial of Valid Claims
Some insurance companies go even further by rejecting valid claims using false information or bending policy rules. This type of denial can be stressful, especially during hard times like illness or emergencies.
Misrepresenting the Policy Terms
Insurers sometimes twist or misstate what your policy says. They may claim that something isn’t covered, even though it is. This tactic is meant to confuse and discourage you from fighting back.
Use of Intimidation or Pressure
Some companies try to scare or pressure people into dropping their claims. They may say that getting a lawyer will slow down the process or threaten legal trouble. These tactics are unfair and often illegal.
Conclusion
Bad faith insurance tactics are harmful and dishonest. They can leave you without the support you paid for when you need it most. If you think your insurer is acting in bad faith, don’t stay silent. Speak to a trusted lawyer who handles bad faith insurance cases. An experienced attorney, like those at Sandstone Law Group, can help you understand your rights and take action. You don’t have to fight alone.
