Third-Party Bad Faith Homeowners Insurance Claims in Louisiana

Posted on April 18, 2023


Hayden Haskins | author

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ICHQ | Site Author

What happens when another person’s property causes damage to your home? In such situations, you may need to file a third-party claim against the at-fault party’s insurance carrier in order to collect reimbursement for your damages.

How does the process differ from filing a claim against your insurance company? Can another insurance company give you a hard time processing your claim? Insurance Claim HQ’s bad faith insurance lawyers explain what to do when a third-party insurance company may be acting unethically.

First-Party Insurance vs. Third-Party Insurance

First-party insurers are those that offer coverage directly to the policyholder. When a homeowner files a claim against their own insurance coverage, they deal with a first-party insurer.

A third-party insurance company, on the other hand, is covering another person who is liable for the losses, such as a neighbor or a contractor. They are responsible for paying claims made against their insured party.

For example, if a neighbor’s tree falls on your home, you would likely be filing a claim with the third-party insurance company.

Claims of Bad Faith Against First-Party Insurance Companies

A homeowner accuses their insurance company of bad faith when they believe their insurance carrier behaved wrongly in processing a lawful claim. First-party insurance firms engage in bad faith when they neglect to investigate a claim, delay payment unnecessarily, or deny a legal claim without a justifiable cause.

In Louisiana, homeowners can sue their insurer for first-party bad faith and obtain damages, including penalties and attorney expenses.

Claims of Bad Faith Against Third-Party Insurance Agencies

Examples of third-party bad faith are largely similar to first-party bad faith actions by an insurance company. They include neglecting to investigate a claim in a timely manner, proposing a settlement that does not cover the total cost of the losses, or denying a claim without a reasonable cause.

In Louisiana, homeowners can also launch a third-party bad faith claim against the insurance company of the liable party. This isn’t always the case in other states.

Laws vary on whether you are able to file a third-party bad faith claim in a particular state. Other jurisdictions that may allow these claims include Florida, Georgia, and Arkansas.

However, the legal process for submitting such a claim can be complex and requires the assistance of an experienced insurance lawyer.

Contact an Experienced Bad Faith Insurance

If you suspect you have a third-party bad faith claim against an insurance carrier in Louisiana, please contact our attorneys at Insurance Claim HQ immediately. We can assist you in navigating the legal system and fighting for the compensation you are entitled to.

FAQs About Third-Party Insurance Companies

What kind of damages are recoverable in a bad faith suit against a third-party insurer?

You may be entitled to claim damages for the cost of repairs or replacement of your property and other expenditures caused by a third-party’s negligence.

Can I pursue a claim for bad faith against a third-party insurer if the guilty party lacks insurance?

No, you cannot pursue a claim for bad faith against a third-party insurer if the liable party is uninsured. You may need to initiate a lawsuit directly against the liable party in such situations.