When a storm, hail, tornado, or hurricane causes property damage and destruction, policyholders cling to the fact that they have insurance coverage. Knowing that they have been loyal with their payments, they expect the same in return from their insurance companies. However, sometimes insurers deny commercial insurance claims that are legitimate, delay claim settlements, and use unfair practices at the cost of their customers.
Understanding Unfair Claim Settlement Practices
When insurance companies don’t return phone calls, fail to communicate, take little action, and lack urgency, they may be guilty of using unjust practices. Some bad faith and unfair practices used by many insurers include:
- Misrepresenting information in the insurance policy to their advantage—not for the good of their customers.
- Failing to promptly request additional information from their customers or telling them why the information is necessary in processing the claim.
- Not performing an on-site inspection of the damage within seven business days from the time the claim was filed.
- Failing to give a claim determination within a reasonable amount of time.
- Not providing a written denial that includes a comprehensive explanation of why the claim was denied, referencing specific policy provisions.
- Failing to pay 20 percent of the claim upfront, once the damages are determined to be covered under the policy.
If you believe you are a victim of bad faith and unfair practices, please call the Voss Law Firm to speak with a knowledgeable insurance claim litigation attorney about your claim today at 888-614-7730. You will receive a free consultation and you can request a free copy of our book Top 10 Mistakes You Cannot Afford to Make When Filing Your Insurance Claim.