Signs Your Insurance Company is Operating in Bad Faith

Insurance companies in every state in America are required by law to operate in good faith. When an insurance company is engaging in fraudulent tactics, dragging its feet, or harming the policyholder in other ways, the insurance company may be operating in bad faith.

Is your insurance company operating in bad faith? Keep reading to discover some of the signs that your insurance company may be operating in bad faith.

Limited Communication: Is your insurance company refusing to communicate with you? Is your insurance company taking too long to respond to your emails? Does your insurance company refuse to pick up when you call, or avoid responding to your voicemails? If so, then your insurance company may be operating in bad faith. Insurance companies are required to communicate with their paying customers. An insurance company that is refusing to communicate about a claim can result in that insurance claim becoming a bad faith claim.

Denying Payouts for No Specific Reason: Some insurance companies operate in bad faith by denying claims with no specific reason given. An insurance company might deny your insurance claim outright for no reason whatsoever. Or, they might provide a vague reason or incorrect reason. Your insurance company is required to pay out whenever the policyholder encounters a situation outlined in the insurance contract. If an insurance company fails to live up to that obligation, then the insurance company may be operating in bad faith.

Pressuring Policyholders to Accept an Unfair or Low Settlement: In the days following an insurance claim, the insurance company might approach you with a seemingly impressive offer. They might offer a large chunk of cash upfront today, claiming that this is the best offer you are going to get. In reality, the insurance company wants to limit its liability and close the case as quickly as possible. When an insurance company pressures customers into accepting a quick payout or unfair settlement, the insurance company might be operating in bad faith.

If your insurance company is engaging in any of the practices listed above, then the insurance company might be said to be operating in bad faith. Consider contacting a public adjuster or an insurance attorney to ensure you are treated fairly by your insurance company.