Every insurance policy acts as a legally binding contract between you and
the insurance carrier and if you are like the average Texan, you have
insurance coverage for multiple areas such as your home, car, and health.
When accidents do occur, it is important to know that the insurance you
have paid for will be there when you need it. It is equally important
to know what to do when it isn’t.
When insurance companies look to support their bottom line by delaying
or denying policyholder’s claims, they are acting in “bad
faith.” To prove a company acted in bad faith, you must be able
to show that they acted unreasonably and did not honor the terms and conditions
set by your insurance policy. Below are four steps to take if you are
ever forced to deal with an insurance company who is acting in bad faith.
Know the signs of bad faith: Remember that insurance companies are corporations which operate for profit
and may look to increase their bottom line wherever they can. By knowing
what constitutes bad faith, you can be ready to take action immediately.
Signs of bad faith include, but are not limited to:
- Delaying or refusing to investigate a claim
- Denying a claim without an explanation
- Misrepresenting the coverage provided to the insured
- Undervaluing policyholder claims
Know your own policy: Your policy with the insurance company dictates exactly what will be covered
by the payments you make each month. It is a good idea to get a hold of
your contract and read it thoroughly to ensure you have a solid understanding
of the coverage it provides. If you request a copy of your policy after
filling claim, make sure it is dated for before your accident. This can
avoid last minute alterations made by the insurance company. Another good
reason to review your policy is that sections or terms found to be unfair
can be contested.
Collect and review evidence: While an accident may have already occurred, you can still collect evidence
to help strengthen insurance and legal claims. Take pictures and video
of any damage to property or injuries that were sustained. If possible,
ask witnesses about the accident and be sure to document each response.
It is helpful to create a file with all the documentation related to your
Take action and hire an attorney: If you think your insurance company has acted in bad faith, contact our
Houston insurance bad faith lawyer at Dick Law Firm. Our firm focuses
exclusively on insurance cases and comes
highly recommended by past clients. Do not believe insurance companies that tell you that a claim will be
worth more than a settlement after legal fees. Companies who are found
to have acted in bad faith may be required to pay the legal fees of the
insured. Even if you have already accepted an underpaid claim, our firm
may still be able to review your case.
Our firm offers free consultations
for potential clients looking to discuss their claim. Call (844) 447-3234
and talk to a lawyer today!