Insurance is protection for worst-case scenarios. People who fall, become victims of crime, sustain massive storm damage to their homes or have other unexpected experiences can potentially rely on insurance to reduce the long-term financial impact of those incidents.
Insurance coverage can pay to repair damaged property. It can cover medical expenses and lost wages. It can also protect people and businesses from liability if they are technically responsible for the injuries or losses of others.
Both the law and the terms of a policy require that an insurance company pay valid claims. What rights do policyholders have when insurers refuse to honor their policies by denying reasonable claims?
Fighting back may require support
The insurance company may hope that some of their policyholders simply do not understand their rights or the terms of their policies. In some cases, insurers get away with denying valid claims or offering lowball settlements because policyholders do not understand or effectively assert their rights.
If an insurer shows warning signs of bad faith practices, such as delaying communications, claiming the issue doesn’t fall under the policy or offering an unreasonably low settlement, then it may be time to bring in legal support. An insurance attorney can assess the policy to validate that the losses should be eligible for coverage. They can negotiate a more reasonable settlement with the insurance company.
A lawyer could also document the situation and help a policyholder pursue a bad faith insurance lawsuit. When insurance companies do not honor their policies as written, the people affected can potentially take legal action.
A successful lawsuit can result in the payment of a claim and additional damages paid by an insurance company due to their failure to uphold the policy in good faith. Reviewing a frustrating insurance situation with legal professional can help people understand and effectively exercise their options accordingly.
