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What Is Bad Faith Insurance Claims Adjustment?

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  • What Is Bad Faith Insurance Claims Adjustment?

Bad faith insurance claims adjustment is an attempt by an insurer to evade its obligations to its policyholders or claimants. It can be done by refusing to investigate or pay a legitimate claim by a policyholder. Failing to process a policyholder’s claim within a specific time is also a bad faith insurance claim.

Other Bad Practices May Include:

  • Undervaluing a claim;
  • Denying facts even after providing evidence;
  • Delay in making claim decisions;
  • Ignoring communications;
  • Detering you from filing by creating unnecessary work;
  • Twisting the facts.

Another example of bad faith by an insurance company is failure to disclose policy limitations to policyholders when writing the policy.

How to Fight Bad Faith by an Insurance Company

If you think that your insurance company engaged in bad faith, or misconduct or deceived you, you can take these four steps and file a bad insurance claim adjustment:

  • Review your insurance policy: To begin, you must prove you have a legitimate claim. You must carefully review the inclusions, exclusions, deadlines, and other relevant information of your policy. In addition, you must also prove that you followed all the appropriate steps to file a claim and are within the time limit.
  • Collecting evidence: The evidence associated with your original claim is essential, and must include repair costs, itemization of  property damage, medical bills, and other documents in case of automobile accidents, or slip and fall accidents. In filing the original claim, the best practice is to put everything in writing to avoid any misunderstanding at a later stage.
  • File an appeal for the denial: If your claim is denied the insurance carrier usually has some procedure to appeal and ask for a review. If you want a further review of your claim, send your demand in writing. Furthermore,  you should also demand a reply in writing. 
  • Consult a lawyer: It is always a good idea to consult a lawyer in your case. They can review your claim for validity, and assist you with meeting the filing deadlines and statute of limitations.

Following all these steps may help you avoid being trapped in unfair practices and pursue an insurance claim.  

What Is The statute of limitations in Florida for a claim of bad faith against an insurance company?

If you have been a victim of bad faith practices by your insurance carrier, you have 5 years to file a lawsuit. 

What Do You Mean By Breach Of Contract In Insurance Bad Faith Claims?

Breach of an insurance contract is a practice that can make an insurance company responsible for bad faith. Insurance companies have a duty of good faith and fair dealing to their policy-holders. An insurance representative may sometimes act in bad faith by refusing to pay a legitimate claim.

When To Award Punitive Damages Against An Insurance Company

The primary purpose of punitive damages is to punish grossly negligent, malicious, or intentional misconduct. In addition, punitive damages might prevent a defendant from doing repeated harm or misconduct in the future.

Under Florida Statute 624.155(1)(b)(1), “Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests,” constitutes a cause of action for any person injured.

How Will You Determine The Settlement Value?

In addition to recovering the amount owed for the original insurance claim, a successful recovery for bad faith dealing in an insurance claim might include statutory damages and actual costs incurred because of the delay, including interest and litigation expenses.

Want To Protect Your Claim’s Value? Contact An Experienced Law Firm

It can be a daunting task to face a massive insurance company. However, you do not have to handle them alone. Our experienced lawyers are there to help gather evidence and negotiate with the insurance companies. They have the expertise to assist you in avoiding any pitfalls. Schedule a free case consultation to discuss your case. Fill out our online contact form for any queries.