Signs of Bad Faith Claims Handling by Your Insurance Company

Posted on February 9, 2023


Frances Badayos | author

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ICHQ | Site Author

Even under the best of circumstances, it can be a hassle to deal with your insurance company. If your home is damaged by wind or rain and your insurance company denies your valid claim, it can be a nightmare. Unfortunately, insurance companies regularly deny valid claims or mishandle them, resulting in delayed compensation when you need it most. 

Our team of Louisiana attorneys has experience dealing with bad faith from insurance companies and are available now to help you.

What is Bad Faith?

Bad faith refers to actions taken by an insurance company to avoid or delay paying a legitimate claim. Each state will have its own definition of bad faith. Louisiana law lists some specific actions which, if done knowingly by an insurer, constitute a breach of their legal duties to policyholders. If you have provided your insurer with evidence of loss, and they have refused to pay your claim, and their reasoning is arbitrary or without reasonable cause, then the insurer could be held liable for acting in bad faith.

Examples of Bad Faith Claims Handling

Misrepresenting facts or policy provisions

Insurance companies are not allowed to lie or mislead policyholders about what is and isn’t covered by your policy. They also aren’t allowed to lie about their responsibilities before the law. If your insurance company refuses to pay a claim covered by your agreement, that could be an example of bad faith.

Failure to promptly pay a claim

Under Louisiana law, the insurer has 30 days to pay a claim once an agreement is reached in writing. The company also must pay a claim within 60 days of the receipt of satisfactory proof of loss by the claimant. This prevents companies from simply refusing to reach an agreement. If your insurance company is taking unreasonable delays in investigating or paying out your claim, that could be an example of bad faith.

Misleading a claimant about deadlines

The insurance company must inform you of all relevant deadlines that might impact your ability to file a claim. They must also ensure claimants have access to any paperwork or information they might need with enough time to meet any deadline. If your insurance company denied your claim because of a deadline you were misled or not informed about, that could be an example of bad faith.

What Can You Do About Your Insurance Claim Being Mishandled?

If your claim has been denied, the first thing you want to do is to get a copy of that denial in writing. Also, review a copy of your policy in order to find relevant provisions covering your situation.

If your insurance company has acted in bad faith, you may be entitled to the full value of your claim plus damages. The insurer is not allowed to use those damages in their risk assessment calculations to determine your rate. Our team of attorneys at Insurance Claim HQ has the time, experience, and resources to get you what you’re owed.

Contact us at 844-969-4130 for a free consultation. We have experience going up against insurance companies and may be able to help you get the compensation you deserve.

Bad Faith Insurance Case FAQs

Can I sue my insurance company?

If the denial of your claim is found to be arbitrary, capricious, and without probable cause, you could be entitled to damages beyond the value of your initial claim.

Are bad faith cases easy to win?

Bad faith cases are notoriously complex and difficult to prove. That is why it is important to work with an experienced team of attorneys who have litigated these kinds of cases before.