When you purchase homeowners insurance, you expect your policy will cover your property in the event something happens to it. You also expect your insurance company to come through when you need them. Unfortunately, insurers don’t always live up to their obligations and may look for reasons to delay or deny a claim. This sometimes reaches the point of the insurance carrier engaging in bad faith tactics to avoid paying a policyholder.
Facing a denied or delayed claim following damage to your Louisiana home is an upsetting and stressful situation, and you may find yourself at a loss for what to do next. When this happens, an experienced property casualty lawyer from Insurance Claim HQ can help. We assist clients dealing with damage arising from fires, storms, hurricanes, floods, burst pipes, wind, theft, and other issues.
More importantly, our lawyers understand what you’re going through. Fighting insurance claims is personal to us, as many of our lawyers live in Louisiana and the Deep South. We know firsthand what it’s like to experience property damage. At our law firm, we channel our passion into what we do, which has resulted in our recovering over $1 billion for our clients.
Trust us to fight the insurance companies for the fair settlement you expect and deserve. Contact ICHQ today to get started with a free, no-obligation consultation. You pay nothing upfront for us to get started on your case.
What a New Orleans Bad Faith Insurance Attorney Can Do for Your Case
If your insurance company is not handling your claim fairly, a New Orleans bad faith insurance attorney from ICHQ can help you fight back. Your lawyer can assess the actions taken by the insurer and determine if they violated any laws against bad faith tactics.
If they find evidence your insurance company engaged in bad faith tactics, your attorney will guide you in gathering the necessary evidence to support your case. They will also negotiate on your behalf to seek a fair settlement. If the insurer refuses to cooperate, your attorney can represent you in court to hold them accountable.
One of the biggest advantages of having an attorney on your side is that having legal support can increase your chances of resolving the dispute in your favor. This is because insurance companies may take your claim more seriously when they know you have legal representation.
What Does ‘Bad Faith’ Mean?
When an insurance company acts unfairly or dishonestly when handling a claim, it’s said to be acting in bad faith. Bad faith tactics may involve delaying communication, offering unreasonable settlements, or denying valid claims. Policyholders have the right to expect fair treatment, and when insurers act in bad faith, it may be necessary to take legal action to hold them accountable.
What Are Louisiana’s Bad Faith Laws?
Louisiana’s bad faith laws protect policyholders from bad faith actions by insurance companies. According to Louisiana law, insurers must process claims promptly, communicate clearly, and act in good faith. If they fail to pay a valid claim within 30 days or act dishonestly, they may face penalties under state law.
A New Orleans bad faith insurance lawyer from ICHQ can help you understand your rights under these laws and pursue legal action if your insurer violates these obligations.
What Are Ways Insurance Companies Could Act in Bad Faith?
What is bad faith insurance company conduct? Insurance companies may engage in a variety of bad faith tactics that unfairly impact policyholders, often by delaying or denying their rightful compensation.
Some common ways insurers may act in bad faith include the following:
- Making Low Settlement Offers – Some insurers may offer significantly less than what your claim is worth, hoping you will accept to avoid a time-consuming battle. This tactic can prevent you from receiving the full compensation you deserve.
- Delaying Communication – Insurance companies may intentionally take longer to respond to your claim, hoping to frustrate or discourage you from pursuing your case. This delay can lead to unnecessary stress and financial strain, especially when you need immediate compensation.
- Requesting Irrelevant Documents – Insurers might request documents that have no bearing on your claim, making the process more complicated and labor-intensive. These unnecessary requests can slow down the process and delay the resolution of your case.
- Setting Unreasonable Standards for Evaluating Your Claim – Some companies may impose unfair or unrealistic requirements for your claim to be approved. They could demand excessive proof or documentation that goes beyond what is necessary.
- Giving You Incorrect Information About Your Policy or Claim – Misrepresenting policy terms or the status of your claim can confuse and discourage you and weaken your position. This tactic can make it difficult to understand your coverage and rights.
- Accusing You of Insurance Fraud – Your insurer may accuse you of fraud, not conduct a proper investigation, and wrongfully deny your insurance claim. These accusations can create additional legal problems and further complicate the claims process.
What Legal Rights Do I Have as an Insurance Policyholder in Louisiana?
As a policyholder in Louisiana, you have legal rights under the state’s bad faith laws.
State law protects you when an insurance company fails to act fairly or promptly in handling your claim. The law requires insurers to process claims within 30 days, communicate clearly and directly, and act in good faith throughout the claims process. If an insurer violates these laws, you may be entitled to financial compensation. A bad faith lawsuit can help you recover compensation when your insurer wrongfully delays or denies your claim.
The law also empowers you to seek legal action against insurers for misrepresentation or dishonest tactics. If you believe your insurer has acted in bad faith, contact ICHQ today. A New Orleans bad faith insurance attorney from our law firm can help you understand your rights and guide you through the process of holding the insurance company accountable.
If an Insurance Company Denies My Claim, What Are My Options?
If your insurance company denies your claim in bad faith, you may have several options for securing the compensation they owe you. First, contact a New Orleans bad faith insurance lawyer at ICHQ. Our attorneys can help you assess your claim, gather evidence, and determine the best course of action to challenge the denial and protect your rights as a policyholder.
Your attorney will likely begin by reviewing your policy to fully understand its terms and conditions. It’s possible the insurer misinterpreted or misrepresented your coverage. Your lawyer may request a detailed explanation from the insurer about why they denied your claim.
If your attorney believes the denial was wrongful, they can file a bad faith insurance claim against the company. This action can force the insurer to reconsider the denial and potentially compensate you for additional losses caused by their bad faith actions. Having an ICHQ attorney working on your claim may also prompt the insurer to reverse their decision if they realize you’re prepared to take legal action.
What Must I Prove in an Insurance Bad Faith Claim?
Knowing how to prove bad faith insurance is the key to a successful claim. This requires you to prove certain elements that show the insurance company acted unfairly or dishonestly. Some key points you need to demonstrate to strengthen your case and recover the compensation you deserve include:
- The insurance company had an obligation to handle your claim fairly and in good faith
- The insurer failed to meet its obligations by delaying or denying your claim without a valid reason
- You suffered financial harm as a result of the insurer’s bad faith actions
What Evidence Could My Attorney Use to Prove Bad Faith Insurance Tactics?
Proving bad faith insurance tactics can be challenging, but gathering the right evidence can greatly strengthen your case. Your New Orleans attorney can use various types of evidence to show that an insurance company acted unfairly or unreasonably in handling your claim. This evidence might include:
- Policy Documents – The insurance policy outlines the terms and conditions of your coverage. Your attorney can reference it to demonstrate the insurer’s obligations.
- Claim Correspondence – Emails, letters, and recorded conversations between you and the insurance company can reveal delays or unreasonable denials.
- Documentation of Damage – Photos, repair estimates, and records of communication with contractors can support your claim and show the extent of your losses.
- Expert Opinions – Testimonies from industry experts can help establish the nature and extent of your property damage and support your claim of bad faith insurance tactics.
- Internal Records – Evidence from the insurer’s internal notes may indicate poor handling of your case or a failure to follow company policies.
The total amount of damages (compensation) you might receive in a New Orleans bad faith claim depends on the value of the damaged property for which you’re seeking compensation. This settlement amount also determines how much the insurer will pay in penalties.
In addition to the settlement itself, the insurer must pay the greater of $1,000 (or $2,500 in catastrophic claims) or 50 percent of the settlement amount as a penalty for denying your claim in bad faith. If the insurer originally made a partial payment, they must pay the greater of $2,500 or 50 percent of the difference between what they paid and what they owed.
For claims delayed in bad faith, insurers may face additional penalties.
Under Louisiana law, you have 10 years to file a lawsuit against an insurer who engaged in bad faith tactics to deny a valid claim. While this seems like a lot of time, keep in mind that critical evidence is always easier to access sooner rather than later. Reach out to a New Orleans bad faith insurance claim attorney from ICHQ as soon as possible to initiate the legal process.
The following are some of the types of bad faith insurance claims we at ICHQ handle:
