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What Does it Mean When an Insurance Company Operates in Bad Faith?

By ClaimsMate Public Adjusters

What Does it Mean When an Insurance Company Operates in Bad Faith?

06/03/2019 Is your insurance company operating in bad faith? If your insurance company is dragging its feet, denying your claim, or engaging in other problematic practices, then it’s possible that your insurance company is operating in bad faith. Today, we’re explaining some of the things that could indicate whether or not your insurer is handling your claim in bad faith.

They Deny, Delay, or Reduce your Payout with No Notice: Your insurance company may be denying, delaying, or reducing your payout with limited explanation, in which case they could be operating in bad faith.
They Fail to Abide by Terms of your Insurance Contract: Your insurance contract is a legally-binding agreement between you and your insurance company. When an insurance company fails to abide by that agreement, they could be breaking the law. Read the terms of your insurance policy closely to ensure your insurance company is following the rules.

They Don’t Conduct a Thorough Investigation: Your insurance company has an obligation to investigate your claim. In some cases, a disreputable insurance company might deny or reduce your claim without ever investigating the claim. In many cases, this is considered operating in bad faith, and the insurance company may be held liable.

They Take a Long Time to Respond: Slow communication is a common tactic used by less-reputable insurance companies. The goal is to frustrate customers with poor communication, ensuring customers to ultimately give up their complaints and accept a lower settlement. If your insurance company is taking too long to respond, then your insurance company may be operating in bad faith.

Operating in bad faith is against insurance laws in every state in America. If your insurance company is operating in bad faith, then you may wish to hire a public adjuster to ensure you receive the insurance payout legally owed to you.

Read more in depth details about insurance claim bad faith here:
https://claimsmate.com/an-idiots-guide-to-bad-faith-insurance-claims/

About This Author

ClaimsMate Public Adjusters

ClaimsMate Public Adjusters

ClaimsMate Public Adjusters is your premier partner in navigating the complex terrain of insurance claims for property damage in the thriving city of Houston, Texas. Specializing in assisting both homeowners and business proprietors, our dedicated team at ClaimsMate is committed to ensuring that you…

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