Beware of Fraud by Insurance Companies and “Bad Faith” Behaviors
What are some tactics that insurance companies use?
Although it may be difficult for an average person to determine if their insurance company is taking advantage of them, there are certain tactics to be aware of, including:
Denying claims: When submitting a residential insurance claim for compensation, insurance companies often tell their clients that they have insufficient coverage and will deny claims. They also may indicate the policyholder was fraudulent, such as accusing a person of arson in the case of a fire, even when the fire department didn't come to that conclusion.
Delaying claims: Insurance companies are sharp and have trained their adjusters to settle claims for as little money as possible and to delay settlements. This way they hold onto more money for a longer time period. When insurance companies are waiting for third party payments before paying out the claim, they may be participating in bad faith insurance claims.
Undervaluing or diminishing claims: Insurance companies may indicate that the item in question was already damaged by wear and tear and offer a lower amount. They also may try to undervalue the claim, by delaying the claim, in hopes that someone will be so desperate for the money that they will take it and not challenge the diminished claim value.
There are many other tricks and tactics that insurance companies use to find ways to pay their policyholders as little money as possible. When insurance companies participate in fraudulent behaviors, you need to speak with a Texas insurance litigation lawyer. Call the Voss Law Firm today to speak with a skilled insurance claim attorney in a free legal consultation at 888-614-7730.
Also, please download a FREE copy of attorney Bill Voss's book: Disputes With Your Insurance Company - What All Consumers Need to Know, located on our website.
The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.