Posted on September 13, 2024
ICHQ | Site Author
Louisiana law regulates the insurance industry, and it imposes a duty of good faith and fair dealing on insurers. If you suffered property damage in a storm, you should immediately contact your property insurer to open a claim. Please also pay attention to red flags and bad-faith insurance practices. This industry has a history of trying to shortchange insureds.
At Insurance Claim HQ, we can help anyone negotiate a settlement for property loss and business interruption. But we can also bring a bad faith insurance claim when your insurer violates basic standards. Below, our New Orleans bad faith insurance attorney identifies the key signs of bad faith.
We invite you to reach out to our law firm to schedule a free consultation.
Red Flag #1: Misrepresenting the Policy
An insurance company cannot make misrepresentations about your claim and the policy you have.
If they do, then they have probably committed bad faith.
For example, your insurance policy might state that you need to submit a claim within 7 days of loss.
The company can’t allege the insurance policy requires a 3-day deadline. That is blatant misrepresentation.
Red Flag #2: Failing to Promptly Adjust the Claim
Your insurer cannot drag their feet and fail to respond to your attempt to open a claim. They should start their investigation—the “adjustment of claim”—in a prompt fashion.
Under Louisiana Revised Statutes § 22:1892, the insurer must begin adjustment of the claim within 14 days of notification of loss. There are exceptions for so-called “catastrophic losses,” where a 30-day window applies, but the 14-day window is the applicable one for most claimants.
In any event, an insurer cannot simply delay and drag out the process. They do so for a simple reason: the longer they delay paying out a claim, the more pressure they put on a claimant.
Ultimately, they hope you will settle for less than you deserve. You should immediately reach out to our firm if your insurer has not begun the adjustment process promptly.
Red Flag #3: Failing to Pay a Timely Settlement
An insurer must pay a settlement within 30 days after receiving satisfactory proof of loss. If not, please call Insurance Claim HQ. You might sue them for bad faith.
In our experience, the insurance company will likely contest whether the proof was satisfactory.
Some of them continue to demand more evidence or information, which slows down the claims process. At some point, their demands for evidence are unreasonable.
Red Flag #4: Failing to Pay a Claim for an Arbitrary Reason
An insurer will certainly look closely at your loss to see if it is covered by the policy. We wouldn’t expect anything less. However, they cannot reject your claim for an arbitrary or capricious reason.
In short, they need probable cause to deny a claim.
For example, it is bad faith for an insurance company to refuse to pay a settlement for hurricane damage because a lot of your neighbors are also submitting claims and the company is worried about cutting into its profits. That’s unreasonable.
They also can’t deny a claim because you didn’t have storm windows installed and they think you should have done so. If the contract doesn’t require it, then your insurer cannot reject your claim for that arbitrary reason.
You might not be sure if the reason given for your denial is valid. As mentioned above, a lot turns on the language of your insurance policy, which you might not understand. Give our firm a call.
Insurance companies can be creative in how they interpret policies. Some of them are not expecting you to hire a lawyer who can read the contract and who understands an insurer’s obligations under it.
Many people don’t understand the legalese in insurance contracts. The language is quite dense. We can see if there is a valid reason for them to deny your claim.
Red Flag #5: Failing to Provide an Adjuster’s Report within 15 Days
The adjuster’s report is central to any claim. You can be sure your insurer read the report closely. By law, they must provide you a copy within 15 days of your request, and failure to do so is bad faith.
Often, they try to hide the report because it might not support their denial.
We definitely want to see the adjuster’s report, because it might actually be flawed. For example, the adjuster might have overlooked obvious damage which you documented with photographs and/or video. Or the adjuster’s report might support our claim that you suffered a serious loss, but the insurer tries to bury it.
Red Flag #6: Not Returning Your Calls
If a hurricane hits, then an insurance company’s adjusters will be busy. That is understandable.
They will drive out to properties to inspect them and create a report. But if you think an insurance company is giving you the runaround, then you might have a valid bad-faith insurance claim. You should document all the days and times you tried to contact them.
How to Prove Bad Faith Insurance Practices
Louisiana empowers anyone with an insurance policy to hold their insurance company accountable for bad-faith insurance practices.
However, you’ll need to bolster your case with evidence.
All communications between you and your insurer are key. Save letters and emails. If you have a phone conversation, write down the day and time, as well as the name of who you spoke to. Include a short summary of the conversation.
We also want to see your insurance policy. That is the foundation of your agreement with the insurance company. We can’t know if they refused to interpret the policy reasonably until we have read it.
When Should You Contact a Bad Faith Insurance Attorney?
Immediately. As soon as you spot a red flag—or you think something is wrong—you should call our offices. A New Orleans bad faith insurance attorney can review the evidence. Sometimes, a sternly worded letter will jog the insurance company to begin the adjustment process or hand over the required information. Insurance companies are like any other business which can sometimes make mistakes.
We expect them to promptly correct them.
The law also gives you the right to sue for bad faith in certain cases. If we win, then the insurer will have to pay a penalty on top of the damages owed for the claim. The insurance company should also pay for your attorneys’ fees, which makes hiring an experienced lawyer easier.
There is no excuse for bad-faith insurance practices. After a bad storm or another disaster, you should be treated with respect.
When hiring a lawyer, look for one who has worked in this field. Insurance law is always changing, and your attorney should stay on top of the latest developments. A solid background in storm damage and property loss is essential. But bad faith claims have their own unique wrinkles. Our New Orleans lawyers are eager to share our knowledge with anyone who is struggling with an insurance claim.
Request a Consultation at No Charge to You!
Insurance Claim HQ has helped thousands of people who have suffered property loss after a fire, tornado, hurricane, or other disaster. If your claim was unfairly denied, or if you are upset about a lowball offer, then please call us. We can negotiate with your insurer for fair compensation.
If you were the victim of bad faith practices, we can also help. A bad-faith insurance attorney will hold your insurer accountable for mistreating you.
