9 Common Examples of Insurance Bad Faith

Insurance bad faith is defined as unreasonable or unfair conduct by an insurance company. If your insurance company acted in bad faith when interpreting your policy or investigating your claim, you may have grounds for a bad faith lawsuit against your insurer.

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Insurance bad faith takes many forms. You may have grounds for a claim if your insurer denied your claim without justification, underpaid your claim, or unreasonably delayed the processing of your claim. Under Florida law, if you have to file a lawsuit against your own insurance company to enforce your rights, your insurer will have to pay your attorneys’ fees and related costs if you prevail in getting any judgment or decree in your favor.

If you believe that your homeowner’s insurance company has acted in bad faith, contact Leader & Leader P.A. Michael D. Leader is an insurance claims lawyer in Fort Lauderdale who will evaluate your case to determine if you have grounds for a claim.

Our office is available 24 hours a day, seven days a week. Schedule a free consultation today by calling 954-523-2020.

What Are the Most Common Types of Insurance Bad Faith?

Finding out that your homeowner’s insurance claim is being disputed can be incredibly stressful. You’ve purchased an insurance policy and paid your premiums on time, yet your insurance company is refusing to step up to the plate and cover your losses. If you are in this situation, contact an insurance attorney as soon as possible to discuss your case.

Here are nine common examples of bad faith:

  1. The insurer waits too long to inform the policyholder that the claim is under dispute;
  2. The insurer engages in fraudulent or illegal practices;
  3. The insurer tries to settle a claim for an unreasonably low amount;
  4. The insurance company attempts to delay, undervalue, or deny payments without reasonable justification;
  5. The insurance company diminishes a claim in such a way that forces the policyholder to enter into litigation or tries to use one claim or a portion of claim to leverage the insured to take less than they are entitled to on the other claim or portion;
  6. The insurer tries to settle a claim using policies that were altered without providing appropriate notice to the policyholder;
  7. The insurer does not acknowledge or provide prompt responses to a covered claim;
  8. The insurer uses harassing or demeaning methods to investigate a claim or gather information; or
  9. The insurance company uses inaccurate information to undervalue or deny a claim.

4 Common Reasons Why Homeowner’s Insurance Companies Deny Claims

Just because your homeowner’s insurance claim was denied does not necessarily mean that your insurer acted in bad faith, but it is certainly worth your time to discuss your case with an attorney. The following are common reasons why insurance companies deny claims:

  1. The policyholder failed to pay the premiums on time;
  2. The specific type of damages is not covered by the policy;
  3. The policyholder provided false statements on the initial application; or
  4. The policyholder failed to maintain the property, the loss was the result of normal wear and tear and/or there were work or repairs that were improper or faulty that causes the loss.

If you believe that your insurance company has acted in bad faith, contact Leader & Leader P.A. Michael D. Leader has received recognition by the Martindale-Hubbell Bar Register for his ability in the courtroom. Call 954-523-2020 today to schedule a free consultation with an insurance attorney in Fort Lauderdale.


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