Almost no one enjoys working with an insurance company. Part of it may be that we usually only need to deal with insurance companies after something bad happens.
However, if you are like many Florida residents, you may find dealing with an insurance company to be frustrating, confusing and stressful. In some ways, this is to be expected. Insurance claims are often complex and there is no guarantee the claim process will be smooth, even if the insurance company is doing its best.
Good faith and fair dealing
An insurance policy is a contract. All contracts come with an implied promise of good faith and fair dealing. This means both parties to the contract will act in good faith and deal fairly with each other when fulfilling their duties under the contract.
Although complications are somewhat expected, it can be hard to know when an insurance company is being difficult or when they are acting in bad faith. You have probably heard of bad faith insurance claims and wonder if that is what you are experiencing.
It is important to know that an insurance company making a mistake does not necessarily mean they are acting in bad faith. Mistakes happen in every job and industry and even a series of errors may not be viewed as bad faith if the insurance company can show it is treating you fairly and acting in your best interest.
When an insurance company is treating you unfairly when handling your claim or improperly denying your claim, you could have a case of bad faith. To succeed in a bad faith insurance claim, you must generally prove that the insurance company did more than make a mistake; they intentionally or purposefully denied your insurance claim.
Signs of bad faith
Here are some examples of an insurance company potentially acting in bad faith:
- Denying a claim for no reason
- Refusing to investigate a claim
- Refusing evidence that you try to provide
- Refusing to settle or offering an unreasonably low settlement offer
Rather than refusing to investigate, sometimes an insurance agent will start improperly investigating factors that have nothing to do with your claim. If you feel that the insurance company is actively working against you or going above and beyond to find a reason to deny your claim without justification, they may be acting in bad faith.
If you can prove bad faith, you could receive various types of damages. Common damages include any actual financial losses you experience from their refusal to process your claim properly, interest on the losses and court costs. Depending on your circumstances, punitive or emotional distress damages can be recovered.
Document all interactions you have with an insurance company
Record the days and times you speak with them, who you speak with and what you discuss. Take notes as you talk and write a summary of any verbal conversations.
Keep records of all written communications. Read your policy carefully and do not be afraid to ask questions. If you file a bad faith claim, taking these steps will help you prove your case.
Insurance companies are meant to protect us in times of trouble and loss. We count on insurance companies to help us rebuild our lives and cover our losses. When an insurance company acts in bad faith, it only adds to the hard times you are going through.