When Should You Hire A Property Damage Lawyer?

The hazard posed by natural disasters is becoming an increasing concern for property owners worldwide. In addition, theft and vandalism can pose risks to commercial property. Typically, a property damage claim for damage to a building may also include damage to the building's contents and lost profits. While certain plans may cover damage to the property, its contents, and business disruption losses, an insurance company may operate in bad faith to its advantage, prompting policyholders to seek legal counsel for property damage claims.

An insurance policy is a contract between the insured and the insurance company. Specifically, it is referred to as a contract of adhesion, which is a legally binding agreement between two parties in which one party (the insurer) has more authority than the other (the policyholder). Almost all contracts have an implied obligation of good faith and fair dealing. This obligation stipulates that neither party may act in a way that compromises the other party's right to receive the full advantages of the contract. In addition, a party that violates the terms of the contract has committed a breach of contract.

Insurance firms are also required by law to comply with certain state-specific legislative regulations. However, insurance companies must respond to claims within a specified timeframe nationwide. When an insurance company fails to comply with statutory or contractual standards, it is in the insured's best advantage to consult legal counsel.

Common reasons for hiring a lawyer for a property damage insurance claim include the following instances of insurance company bad faith:

• Failure to pay on time: An insurer may be behaving in bad faith if it takes longer than legally permitted to make claim payments without notifying the insured and without making a reasonable effort to satisfy the claim.
• When an insurer provides an excessively low settlement for a claim, this could be grounds for a claim of bad faith. For instance, if a business property has $100,000 worth of covered damage, the insurer provides $10,000 to restore it.
• Denying a valid claim: When the insurer denies a claim for a loss covered under the policy's terms, the insurer may be operating in bad faith by attempting to avoid paying out a claim. Frequently, insurance companies attempt to deny coverage by asserting that a loss comes under an exclusion, such as normal wear and tear.