Insurance is supposed to bring you peace of mind. If you get in a car accident, you trust your auto coverage provider to pay for repairs. If your apartment is burgled, you can replace valuables thanks to your renters insurance. Unfortunately, sometimes the companies meant to protect you fail to do their duty, resulting in a situation known as bad faith insurance. Find out what to do if this happens to you and when you should hire a lawyer with the frequently asked questions below.

FAQ About Bad Faith Insurance

What constitutes bad faith insurance?

Bad faith insurance refers either to a company’s refusal to pay your claim or their failure to properly defend you against another person’s claim. Unreasonable delays in investigating a case can also constitute bad faith.

What are some examples of bad faith insurance?

Say you file a complaint with your auto insurance provider but don’t hear back from them. You follow up, but they still don’t send a claims adjuster to examine your case. If this drags on, the company could be acting in bad faith. Another example is when companies fail to disclose policy limitations or make unrealistic demands for you to prove a loss that should be covered. 

When can your insurer deny a claim?

If you violate your contract with the insurance company or try to get money from them for non-covered items, they can deny your claim. In the event of fraud — say you ask a friend to stage a break-in at your apartment so you can capitalize off renters insurance — they can take legal action against you.

When should you take legal action?

If you suspect bad faith insurance, consult a lawyer. You may be entitled to compensation not only for the amount of the claim, but also for out-of-pocket expenses you had to cover because the insurance company failed to pay. You can even get money for time lost at work and legal fees. 

If you think an insurer has failed to do their duty, don’t ignore the issue. Lawyer Daniel H. Craven, P.C. of Baldwin County, AL, provides the aggressive representation you need to take on bad faith insurance. With more than 20 years of experience, he’ll give your case the detailed attention it deserves while taking the time to explain all your options. Visit the lawyer’s website for a breakdown of his practice areas, from DUI defense to criminal law. To schedule a consultation, call (251) 968-8170 today.