The term “Bad Faith” gets thrown around a lot, especially in discussions regarding legal matters, but what exactly does it mean in the context of an insurance claim?
For the purposes of this blog, we are focusing on First-Party Bad Faith claims which are related to an insurance company’s obligation to a policyholder that they insure.
Bad Faith refers to an insurance company’s unjust denial of a claim or inadequate investigation within a reasonable time period. An insurer is acting in “Bad Faith” when they misrepresent the policy language to avoid paying property owners for their damages. Insurance companies often employ a series of tactics to avoid, delay or outright deny a property damage insurance claim. A substantial misrepresentation by the insurer of any crucial policy terms, exclusions, or rights under the policy may constitute grounds for a Bad Faith lawsuit.
Bad Faith refers to an insurance company’s unjust denial of a claim or inadequate investigation within a reasonable time period.
Not all disagreements with an insurance carrier rise to the level of Bad Faith. Simply because an insurance company has a differing estimate than that provided by an independent adjuster does not mean the carrier is acting in bad faith. Instead, if an insurer fails to provide a basis for their estimate or only seeks to find evidence against your claim this may be evidence of Bad Faith and is potentially grounds for a bad-faith lawsuit.
Bad Faith claims do not routinely arise in insurance claim handling, but if you suspect that your insurance carrier is committing acts of “Bad Faith” in resolving your claim there are certain requirements before you may bring a bad faith claim.
Before bringing a bad faith claim, the insured must give the insurer 60 days to remedy the potential violation. The insured is required to file this 60-day notice with the insurance company and the Florida Department of Financial Services.
If the insurance company fails to settle your claim to your satisfaction during this 60-day period, you should seek out an experienced attorney to pursue your claim and potentially file a lawsuit on your behalf.
The attorneys at Windy Law / Larry Moskowitz, PA are very experienced in handling “Bad Faith” claims against insurance companies and protecting your legal rights. If you think you might have such a claim or have any questions at all about a pending matter with your insurance company, give us a call for a free consultation with one of our legal experts
To learn more about what the property damage law experts at Windy Law can do for you – call 844-849-0760 or email us at info@WindyLaw.com. All consultations are free of charge: No recovery – No fee!