552dd6dd50a67839d896325d78c4b204?s=96&d=mm&r=g

Written By: Andy Gurczak

June 27, 2021

Bad Faith Insurance claims

What Is Bad Faith Insurance?

Bad Faith Insurance Claims Can Happen to You

Many insurance companies are reputable businesses. Certainly, their company adjusters and the adjusters’ supervisors are honest people. Nevertheless, bad faith insurance claims are well-known in the insurance industry.

An insurance policy is an insurance contract between the insurance company and the insured person or business. As such, both parties to the contract are expected to act in good faith. This is referred to as a “covenant of good faith and fair dealing” in contract law.

Consequently, if the insurance company fails to abide by its duty of good faith, an insured may make a bad faith insurance claim against the insurance company.

Of course, we recognize that insurance companies are in the business to make money. Obviously, they are not simply in the business to give money away to their insureds. However, when insurance companies act in bad faith by not paying claims or delaying the processing of claims, they violate their duty of good faith to their insureds.

In short, insurance companies must not deny claims without a reasonable basis for doing so. Additionally, they must treat their insureds fairly.
If they do not do that, they may be guilty of bad faith dealing with their insureds. As a result, insureds can file bad faith insurance claims against the company.

How Do Insurance Companies Act in Bad Faith?

Indeed, there are several ways insurance companies act in bad faith regarding their insureds:

Refusal to Pay Out on a Valid Claim

When an insurance company refuses to pay out on a valid insurance claim, they have breached the contract with their insured.
A denied claim, without a reasonable basis for the denial, can result in a bad-faith lawsuit.

Delaying the Processing of a Claim

If the insurance company improperly delays the processing of a valid claim, the insured may file a bad faith insurance claim against the company.
For example, a company can delay the processing of a claim by not sending an adjuster to inspect the damaged property.

Likewise, the company could ask the insured to produce duplicative documents or ones that do not exist.

Similarly, the company could simply sit on the file, claiming it was reviewing all the records before completing the investigation.

Refusing to Pay the Insured a Fair Amount to Settle the Claim

Perhaps the insureds are an elderly couple who do not fully appreciate the amount of damages a storm caused to their home. Unfortunately, the insurance company adjuster made a cursory inspection. In spite of the obvious damages, the company has come back with a quick but low settlement offer. In this case, the offer does not fully compensate the couple for their losses.
However, they have never had to make a damage claim before. Therefore, they did not know they could negotiate with the adjuster.

Unfortunately, they accept the offer, to their detriment.

What Damages Can You Get in a Bad Faith Insurance Claim?

Notably, there are various types of damages an insured who makes a bad faith insurance claim can recover:

  • · Statutory penalties and interest
  • · Attorneys’ fees and court costs
  • · Damages for emotional distress (just like in a personal injury suit)
  • · Damages for economic losses
  • · Punitive damages

As a matter of fact, a person or business who makes a successful bad faith insurance claim may recover monies over the policy limits.

If You Need a Public Adjuster for Property Damage Insurance Claim, Call AllCity Adjusting

To begin with, we are a family-owned claims company with five decades of combined adjusting experience. As a result, if there’s one thing we understand, it’s that you need 100% of your claim value.

Of course, you have already gone through a tumultuous event. For this reason, get an agency that gets you more.

At AllCity Adjusting we work to ensure you get 100% of your damage insurance claim value. Equally important, with over 50 years of combined adjusting experience, we know insurance companies and understand where they cut corners.

Moreover, we help you build a larger claim and get you back to normal fast. Don’t get fooled. Instead, get the company that gets you more.

Bad faith insurance claims happen. Therefore, if you have received a low-ball offer from the insurance company or you just want to talk to someone on your side, call us at 844.692.3587. You can also email us at info@allcityadhjusting.com.

free claim review

Best way to beat the insurance company is to hire AllCity Adjusting

At AllCity Adjusting we help residential and commercial clients alike get the claims support they need. Moreover, we have over 50 years of combined experience helping get our clients the max settlement time and time again. If your claim has been low balled or denied entirely we can help increase your maximum settlement. Call us today for a FREE consultation. Experience the AllCity difference.

public adjusting call support

Real Support When You Need It!

Related Articles

The Role of a Public Adjuster in Water Damage Claims

The Role of a Public Adjuster in Water Damage Claims

If you own property, managing roofing insurance claims might seem tough. Knowing how to quickly deal with roof damage insurance claims from water, weather, fire, or unexpected events is helpful. In this guide, we’ll share useful tips to help you understand and work through roofing insurance claims more easily, aiming for a quicker solution.

Understanding Water Damage Claims: A Comprehensive Guide for Homeowners

Understanding Water Damage Claims: A Comprehensive Guide for Homeowners

If you own property, managing roofing insurance claims might seem tough. Knowing how to quickly deal with roof damage insurance claims from water, weather, fire, or unexpected events is helpful. In this guide, we’ll share useful tips to help you understand and work through roofing insurance claims more easily, aiming for a quicker solution.

Time Limits for Filing Commercial Roofing Insurance Claims

Time Limits for Filing Commercial Roofing Insurance Claims

When floods, storms, or fires destroy roofs, insurance claims can save homeowners. However, property owners must be aware of the commercial roofing insurance claim deadline. We’ll explain this crucial period in this piece to help property owners manage the claims procedure.

The Role of Insurance Adjusters in Commercial Roofing Claims

The Role of Insurance Adjusters in Commercial Roofing Claims

For commercial property owners, dealing with roofing insurance claims can be complex. This is where a Commercial Public Insurance Adjuster becomes vital. They help property owners who might struggle to understand their insurance policies, especially when it comes to roof damage from water, storms, or fire.

Commercial Insurance Definition

Commercial Insurance Definition

If you own commercial property, understanding the intricacies of insurance claims is crucial. Commercial insurance definition can be particularly complex, with various terms and definitions that property owners need to grasp. This piece will help you understand some important terms linked to business roofing insurance claims, so you can go through the process with confidence.

Roofing Companies that work with Insurance Claims

Roofing Companies that work with Insurance Claims

If you own property, you’re likely aware of the importance of having insurance coverage to protect your investment. Roof repairs can be costly, especially when caused by storms, fires, or water damage. This is where roofing companies specializing in insurance claims can help.

Stay Up to Date With The Latest News & Updates

Don't Wait - Get More

Get a free 1 hour consultation on your next call. So call today and challenge the insurance company narrative on your policy claim. We can help you with all your public adjuster claims support. Let us help you get more.

public adjuster service areas background

Join Our Newsletter

Do you want to learn more about public adjusting. In this newsletter we create helpful tips and hints and you will receive notifications when we post new articles.

Follow Us

Follow us on the following social networks.

Call Us Now

AllCity Adjusting

All City Adjusting