You’ve probably been paying premiums to the same insurance company for a while now. Hopefully you have been making timely payments and have an account that’s in good standing. It’s supposed to be a comfort to know that you will receive benefits if you file a claim after having been in an accident or suffering injuries. If your claim faces a delay or denial because of bad faith insurance policies, you may need to reach out for added support to help resolve the problem.
It’s not right for your insurance company to delay or deny your benefits without just cause. If they misrepresent the terms of your contract just to try to get out of paying you the money you’re entitled to, you can file a complaint. State laws protect consumers from bad faith insurance policies regarding homeowners’ insurance, motor vehicle insurance or commercial property coverage.
Do you have evidence as a policyholder to support filing a claim?
If you can show just cause that your claim merits benefits, the insurance company can’t disregard it. It’s not uncommon for policyholders and insurance agencies to disagree about policy issues or terminology in a contract. If this happens, it’s important to seek support from someone who is well-versed in legal jargon and can help you determine whether the agency is acting in good faith by denying or delaying your claim.
Courts have made insurance companies pay compensation for damages
If you prove that bad faith insurance practices have kept you from collecting benefits to which you’re entitled, the court may order the company to pay compensation for damages. In the past, there have even been cases where a jury has awarded punitive damages to hold bad faith insurance companies accountable for their wrongdoing. An insurance company must keep its promises, meaning it must adhere to the terms of the agreement from when you signed a contract.
If you have filed a claim, and your insurance company is denying it or agreeing to only cover part of it, you’re entitled to an explanation. Keep in mind that human error does not necessarily constitute bad faith practices. People make mistakes. However, if you believe there’s more to it than that, you can seek a solution to the problem, including, if necessary, going to court to resolve the issue. If you’ve met your premiums, you can take steps to get the results to which you believe you’re entitled.