5 Red Flags That Could Mean Your Insurance Company Is Handling Your Claim in Bad Faith

When an individual pays their insurance premiums, an agreement is reached with the insurance company to fulfill certain obligations. The insured is obligated to pay a yearly or monthly premium. On the other hand, the insurance company promises to protect the insured in the event of an accident. 

An unfortunate reality for many Floridians is that once a claim is filed, the insurance company becomes less of a partner and more of an adversary. Florida insurance carriers are obligated to act in good faith towards their insured. Briefly, this involves handling a claim fairly and without delay. 

Acting in bad faith means violating one of these principles without just cause. The sooner an insured identifies signs of bad-faith dealings, the sooner their rights can be protected and preserved. 

Delays Without Justification 

Initially, an insurance company must acknowledge a claim within two weeks of filing. An investigation into the claim must commence immediately. If an insurance company has taken months to assign an adjuster or is failing to communicate, these actions may be an example of bad faith.

Without an Investigation, a Claim is Denied

A fast denial of a claim after an abbreviated evaluation is a tell-tale sign of an insurer operating in bad faith. Suppose that an insurance adjuster reviews only a police report instead of interviewing the two drivers involved in the accident or a witness who observed the entire accident occur. This is an example of an insurance company failing to act in good faith.

Settlement Offers Which Do Not Reflect the Severity of the Accident

Even after accepting liability for an accident, an insurance company may make “low-ball”, unrealistic settlement offers to an injury victim. These offers do not account for injuries suffered, property damage to a vehicle, lost wages, or pain and suffering. In short, these are offers made in bad faith in hopes that a desperate claimant will accept any amount of available money. 

Unclear Explanations About Policy Language

Insurance policies are notoriously difficult for people to understand. It is reasonable for a policyholder to ask an insurance adjuster questions to learn policy terms, coverage limits,s and other important information. Misrepresenting policy language or excluding coverage items that are not part of the policy are examples of bad-faith reading of insurance policies. 

Inconsistency By a Claims Adjuster

For most insureds, their primary point of contact with an insurance company is an adjuster. When an adjuster fails to explain situations well, repeatedly changes their position on an issue, or backtracks on whether coverage is in place for a loss, these are all examples of bad faith insurance practices.

Protect Your Rights Against Bad-Faith Insurance Companies- Contact Difilippo & Pica, PLLC

Insurance companies should not be able to push around their insureds. When your insurer fights you on a valid claim, it is time to fight back. Contact Diflippo & Pica, PLLC today for a free case review.