Insurance Bad Faith Claims & Litigation
When a disaster strikes, it can lead to unexpected and sometimes drastic financial burdens. Facing the loss of a house, car, or other essential property is always difficult—and victims may also find themselves struggling with insurance companies to obtain fair coverage for their damages.
At Potts Law Firm, we know how to effectively navigate the confusion and stress of seeking compensation for damages caused by natural disasters, no matter how severe. We have earned a national reputation as an authority in the area of insurance litigation. We have successfully recovered more than $1 billion on behalf of our clients and have demonstrated that even when the situation is daunting, our team of trial lawyers will go the distance.
Our team of experienced insurance litigation attorneys is dedicated to guiding clients through the aftermath of natural disasters. We have handled a range of insurance law claims surrounding hurricanes, hailstorms, tornadoes, and more. We are ready to confidently help you with every detail.
Give us a call at (888) 420-1299 or contact us online using our secure form to request a no-cost, no-obligation consultation with our team today.
Insurance Law 101
An insurance policy is a formal agreement between a policyholder and an insurance company that is bound by state and federal law. The insured agrees to exchange a premium for the promise that the insurance company will indemnify (compensate) the insured after a loss. Insurance is meant to act as a hedge of protection for the policyholder so, even in the worst scenarios, the policyholder is protected after a loss.
Unfortunately, insurance companies do not always honor their obligations. This can lead to disputes between the insurance company and the insured regarding everything from coverage to the level of compensation agreed upon after an incident has already occurred. While in some cases coverage may not be provided in one’s policy for a particular peril (e.g., fires, water damage, hurricanes, floods), there are also instances in which insurers intentionally deny or underpay their clients when coverage is provided in their policy. This is known as “acting in bad faith.”
Examples of Insurance Bad Faith
Insurance bad faith occurs any time an insurance company fails to uphold its obligations under the specific language of an insurance policy or fails to act according to state or federal laws, insurance regulations, or good faith policies.
Specific examples of insurance bad faith include:
- Wrongfully denying insurance claims
- Failing to provide a reason for denying a claim
- Refusing to pay a valid insurance claim
- Delaying an investigation into a claim
- Failing to conduct a proper investigation
- Underpaying insurance claims
- Delaying or denying decisions regarding medical treatment
- Refusing reasonable requests for documentation
- Accepting a claim but delaying payment
- Making threatening statements
- Failing to provide adequate/proper information
- Changing a policy after an insurance claim is filed
- Making unreasonable demands of a policyholder
- Failing to communicate in a timely manner
When an insurance company wrongfully underpays or denies an insurance claim or otherwise acts in bad faith, a lawsuit may be the only way to resolve the dispute. Insurance litigation can be used to determine the liability (fault) of a loss involving another party or to establish the legal responsibility an insurance company owes its insured after a loss.
Damages in Insurance Bad Faith Claims
When an insurance company acts in bad faith, the policyholder has the right to sue the insurance company for damages.
Depending on the specific details of the case, the policyholder may be entitled to the following types of damages:
- Contract Damages: Contract damages include the amount for which the initial claim was filed plus interest (if applicable).
Extracontractual Damages: Extracontractual damages include additional losses—economic and
otherwise—sustained by the policyholder due to the insurance company’s
wrongful practices. Examples of extracontractual damages include:
- Lost income or wages
- Financial losses, such as borrowed money to pay for medical care
- Emotional distress, anguish, pain, and suffering
- Attorney/legal fees
- Punitive Damages: Punitive damages are intended to punish the defendant (i.e., the insurance company) for acts of egregious negligence or willful/wanton misconduct. This includes malicious, fraudulent, and oppressive conduct.
Our insurance litigation lawyers can review your case and provide detailed information regarding the types of damages you may be entitled to receive. Get in touch with us today to schedule a complimentary consultation.
Talk to Our Insurance Lawyers Today at No Cost
We are ready to help you fight back against the insurance company’s efforts to wrongfully dispute, deny, or delay payment of your claim. Whether you have been offered a lowball settlement, are having trouble getting in contact with the insurance company, or believe your claim was unjustly denied, it is important that you reach out to Potts Law Firm right away. Various statutes of limitations may apply, meaning you could have a limited amount of time to file your claim.
Call us today at (888) 420-1299 or contact us online. There are no legal costs for you unless/until we win your case. Hablamos español.
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Types of Insurance Law Claims We Handle
At Potts Law Firm, we represent clients in all types of insurance disputes, bad faith claims, and related litigation.
Our insurance litigation practice includes claims involving:
- Fire and smoke damage
- Hailstorms, hurricanes, and tornadoes
- Water damage
- Theft and vandalism
- Auto accidents
- Personal injury
No matter the insurance issue you are facing, we can help. We are a diverse team of experienced attorneys with extensive, varied backgrounds in various aspects of law, including insurance litigation. What’s more, we have the resources needed to effectively pursue these claims.
Potts Law Firm moves quickly to initiate legal action. We understand how important it is that you receive the rightful benefits you are entitled to as soon as possible. With this in mind, we treat every case with the urgency it deserves, working efficiently to limit delays as much as possible.