We pay insurance companies to protect our homes, our vehicles, our bank accounts, and our peace of mind. Unfortunately, insurers don't always hold up their end of the agreement.
When an insurance company fails to treat you fairly, it can be a huge frustration and a financial burden. Fortunately, you have options. A bad-faith insurance lawyer can help you file a claim against unfair or unethical insurers.
In this post, our legal team presents signs that your insurer may be acting in bad faith.
Excessive Delays
While claims take time to investigate and process, insurers in the majority of states must accept or deny claims in a specific amount of time. Insurance companies in Texas must settle claims within 35 business days. If an insurer drags out the process, they may hope you will drop the claim and handle the problem on your own.
Failing To Communicate
One delay tactic is avoiding communicating with the policyholder. Insurance companies that fail to return your calls, answer your questions, acknowledge your documentation, or process your claim may be engaging in bad-faith insurance practices.
Repetitive Inspections
It is common for insurance companies to send out insurance adjusters to inspect your property. However, it may be a delay tactic if your insurer requests a second or third inspection of the same problems. Signs your insurer may be acting in bad faith also include having the same type of professional make more than one inspection or scheduling additional inspections at a much later time.
Unclear Explanations
Insurance companies in Texas must provide a written explanation of any claim denials. Unjustified refusals often indicate unfair insurance practices. Bad-faith insurance lawyers suggest you be on the lookout for denials with the following:
- No written explanation
- Unclear language or illogical reasoning
- Explanations that misrepresent the terms of your policy
- Explanations that differ significantly from what representatives told you orally
Blaming the Policyholder
Fault matters in insurance claims, such as for at-fault versus no-fault car accidents. However, insurance companies that blame the denial on your failure to fulfill specific criteria may be engaging in bad-faith tactics. Insurers are legally obligated to assist you in meeting the conditions required to receive benefits, to inform you of policy provisions, and to cooperate in processing your claim.
Lowball Offers
Insurance companies cannot offer less than your claim is worth to improve their bottom line. Lowball settlement offers that are much lower than your policy limits and repair estimates may indicate your insurer is acting in bad faith.
Pressure Tactics
As any bad-faith insurance lawyer knows, unethical insurers often pressure policyholders to accept unfair settlements. They may tell you it's your last chance to receive an offer or even make threatening statements about filing civil actions or criminal charges against you.
Refusal To Pay
Sometimes insurance companies accept your claim but never pay what they owe you. For example, they may make an initial payment without following through on the remainder. Refusal to pay a valid claim may be a contract breach and a sign of bad faith.
Changing Policies
One final sign your insurer may be acting in bad faith is if they cancel or change your policy without notifying you in advance. This deceptive practice attempts to minimize or deny payouts based on the terms of the new policy rather than your original coverage.
Need a Bad-Faith Insurance Lawyer? Call Us Today!
If you've noticed any of the above red flags, you may be dealing with an insurer that is not acting in good faith. The Houston insurance attorneys at McLaurin Law, PLLC, can help. Whether you're experiencing insurance disputes or delayed payments, call us today at 713-804-7598 to schedule a consultation.
