Insurance Claims: 4 Reasons Why You Need to Hire a Bad Faith Lawyer

In 2017 insurance companies paid out $101.9 billion for property loss claims from a catastrophe. This was a $370% increase from the previous year at $21.7 billion. 

This kind of increase from catastrophy claims can tempt some insurance companies to act in bad faith. After all, they probably didn’t budget for such a rise and the severe increase is negatively affecting their bottom line. 

If you’ve experienced a catastrophe and need to file a claim with your insurance company, you may think it’s a straight forward process. However, you need to look for signs that it’s time to spend money on an attorney

You claim can quickly become complicated, especially if your insurance company acts in bad faith. Here are four reasons you need a bad faith attorney to represent you in your claim. 

What Is a Bad Faith Lawyer?

You purchase insurance policies with the belief that your insurance company will be there for you when something terrible happens. You have car insurance for when you get into an accident. 

You have a homeowner’s insurance policy for if a fire, mold, or water damage your home. When something happens, you should be able to file your claim, and the insurance company pays. 

Unfortunately, it doesn’t always work like that. Sometimes insurance companies fail to handle your valid claim properly. They could create unreasonable delays, refuse to settle your claim, or act in bad faith.  

1. Level the Playing Field  

Insurance companies have a lot of resources, and their primary interest is to protect their bottom line. They are going to use their resources to ensure that they do not pay more than they have to. 

Often this means using a fierce legal team to capitalize on the facts that you don’t know about insurance and the law. What you end up with is less than you deserve. 

Instead, hire an experienced legal team to level the playing field. Instead of merely accepting what the insurance company’s lawyers say, your legal team will raise valid challenges. 

Another big issue facing you with bad faith claims is financial. The insurance company knows that you need the money from your claim.

You are probably strapped for cash and depending on that settlement check. This puts them at a huge advantage with their vast financial resources. 

Your legal team has the resources to fund these types of cases adequately. This way, you are limited in your attempts to fight back. 

Your bad faith lawyer levels the playing field financially and with knowledge. 

2. Protect Your Interests 

Insurance companies want you to believe that they are on your side. They associate themselves with warm and fuzzy feelings of protection. 

However, all of this is shattered when they act in bad faith to protect their interests and leave you hanging. During an insurance claim, your interests and the insurance company’s are actually in direct conflict. 

You are looking for compensation for the damages you’ve sustained. The insurance company is looking to maintain their bottom line be making minimum payouts. 

You need to protect your interests by having someone on your side who looks out for your interests. 

3. Gain Insight 

Do you fully understand your insurance policy and the laws that apply to it and the insurance company? An experienced and qualified attorney can provide you insight into both of these. 

This kind of knowledge will help you effectively pursue the right claims. This ensures that you receive the coverage that you rightfully deserve. 

Your attorney will ensure that you have a valid claim and ensure that you file your claim correctly. They can also evaluate your case and determine whether or not your insurance company is practicing bad faith. 

For most people, they don’t experience an event that requires them to claim a claim with their insurance company very often. Because of this may not know the ins and outs of filing a claim and the insurance company’s process. 

What may seem like unreasonable delays to you may actually just be standard process and procedure. Your bad faith insurance lawyers will look at different actions your insurance company took to deny your claim.

For example, did they fail to investigate your claim properly? Did they provide you with misleading or false information about your coverage and policy? Maybe they were unable to give you a valid reason for the denial of your claim. 

4. Ability to Litigate –

Your knowledge and understanding of the law is limited, even if you are an attorney yourself. There are countless rules and regulations about how and when you can file specific claims and documents. 

The insurance company knows that you do not know all of the legal loopholes. Their attorneys know them all and handle these cases daily. This makes them skilled. 

Work with an insurance company that has a proven track record of successfully litigating against insurance companies. They will know the law and be able to leverage it in your favor. 

Fight Back and Protect Your Interests

If you think your insurance company acted in bad faith when handling your claim, then you need to speak with an attorney. The best way to protect your interests is to speak with an attorney right away; this way your legal team has as many opportunities as possible to fight for your rights. 

Pick a legal team that has the knowledge, experience, and a proven track record of successfully representing clients in their bad faith claims against insurance companies. 

You know you need a lawyer, so use these tips to pick the top lawyer for your claim. 

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.