The following are some of the most commonly asked questions regarding bad faith insurance claims and how an experienced insurance litigation attorney in Palm Beach Gardens may be able to help. For further clarification or to discuss the specific factors of your case, schedule a consultation today.
- What does the term “Insurance Bad Faith” mean?
- What are some examples of Insurance Bad Faith?
- What are my rights under my insurance policy?
- Do insurers have the right to deny a claim?
- What should I do in the event my claim is rejected?
- Does Insurance Bad Faith only apply to certain types of insurance claims?
- What can I recover if I sue my insurer for bad faith?
- Why do insurers commit bad faith?
- I can’t afford to pay an attorney. How can I fight the insurance company?
What does the term “Insurance Bad Faith” mean?
Insurance bad faith involves the insurance company not living up to their contractual agreement with a policy holder and failing to settle valid claims when they could and should do so.
There are many examples of insurance bad faith. They include:
- Unreasonable delay in making payments to the policy holder
- Denial of valid claims from the policy holder
- “Lowballing” of a claim payment (attempting to underpay)
- Failing to protect the policy holders from excess judgements
What are my rights under my insurance policy?
Your insurance policy is a contract. As long as you pay the premiums, the insurer is obligated to pay benefits if the conditions identified in the policy occur. Insurance companies are legally bound to treat their policy holders in good faith.
Do insurers have the right to deny a claim?
Insurers have the right to deny a claim when the insured has not met the requirements of the insurance contract or has not paid their premium, or when the claim is not covered by the policy or is fraudulent.
What should I do in the event that my claim is rejected?
Bring your policy and documentation to a lawyer that specializes in insurance bad faith cases. Insurance bad faith is a very specialized field and it is important to go to the right attorney. An experienced insurance bad faith attorney should be able to determine after a consultation and review of the policy whether coverage applies for the loss and if your insurer may have committed bad faith.
Does Insurance Bad Faith only apply to certain types of insurance claims?
What can I recover if I sue my insurer for bad faith?
If the insurer has acted in bad faith, the insured is entitled to recover the benefits of the policy for the claim as well as all consequential losses and damages suffered as a result of the insurer wrongfully denying the claim, or failing to protect the policy holder. In some cases where the insurer has exhibited intentional misconduct or recklessness, punitive damages may be awarded. Often, however, insurance companies will settle bad faith claims out of court if an experienced bad faith attorney is representing the insured.
Why do insurers commit bad faith?
It’s important to realize that insurance companies operate for profit. By denying or lowballing claims, they save money. They realize that very few people will dispute the rejected or underpaid claims. Even though a few of the claimants sue and recover in the bad faith claims, the insurance companies still make money with bad faith practices.
Domnick Cunningham & Whalen works on a contingency basis. What this means is that if we believe you have an insurance bad faith claim and take your case, you pay nothing. We only receive fees if you receive a settlement or recovery.