FORT LAUDERDALE, Florida. What is insurance bad faith and how can it impact you? If you are facing a denied insurance claim in Florida, it is important to understand insurance bad faith to fight back if you believe you may be affected.
Insurance companies have a responsibility to treat you fairly when you make an insurance claim. You spend money on insurance in the faith that, if you suffer damages or loss, your insurer will pay your settlement and cover your losses. Your insurance policy is a contract. If you honor your end of the bargain (paying premiums), your insurance company must honor its end of the bargain (pay a settlement if you suffer loss). However, sometimes insurance companies may try to cut costs and cut corners. When insurance companies fail to perform their owed duty to you, they could be acting in bad faith.
According to the Florida Bar, insurance companies have a duty to honor the coverage they promised in your insurance contract. As long as you paid your premiums on time and abided by the terms of the contract, your claim should be settled in a timely and fair manner. However, because insurance companies lose money when they settle claims, there are laws in place that require them to honor their policies fairly.
Insurance bad faith can involve many actions on the part of the insurer. These actions include unnecessary delays in settling a claim, failure to properly assess the losses of the insured, or failing the settle the loss. If your claim has been denied, your insurance company must let you know why. The insurance company must investigate your losses in a timely manner.
Another way that insurance bad faith happens is when insurance companies misrepresent the policy or the law. Insurance adjusters have a responsibility to honestly abide by their contractual obligation to you. However, the other side of the coin also holds. If insurance companies learn that you misrepresented the facts when you initially took out insurance, your insurer may have the right to rescind the policy, according to the University of Miami law. However, whether the claim can be denied often rests on whether the insured intended to deceive the insurer. In some cases, there may be material facts that the insured is simply not aware of.
Insurance claims might be denied for many reasons. In some cases, the insurance company may have justification in denying a claim. For example, your damages were less than your deductible or your damages were not covered under the policy. However, it can sometimes be difficult to know whether your denial is fair or justified. If your homeowner’s insurance claim has been denied, consider reaching out to Leader & Leader, P.A., Fort Lauderdale, Florida insurance claims lawyers. Our attorneys can read through your policy, determine whether the insurer acted in bad faith, and fight to help you get the settlement you may deserve under the law. Visit us today at https://leader-law.com/ to learn more.
Leader & Leader, P.A.
633 South Andrews Ave.
Fort Lauderdale, FL33301