Many people have heard of insurance companies that unfairly or wrongfully deny homeowner’s insurance claims. Fewer know that it is also illegal for insurance companies to delay paying out insurance claims for an unreasonable amount of time. Just this week, several families filed a bad faith insurance lawsuit against The Louisiana Citizens Property Insurance Corporation (LCPIC). The lawsuit is due to the fact that, in part, the company has failed to pay out insurance claims following Hurricane Isaac last year.
While it can be easy to understand why irresponsible insurance companies deny claims, it can be more difficult to understand why they delay the payment of claims. What do they gain from such delays? Let’s take a closer look:
- They want to collect more interest. Each day that the money you deserve sits in your insurance company’s bank account is a day that they collect interest on the money. While this doesn’t sound like it would amount to much, picture the interest of hundreds or even thousands of clients’ unpaid claims.
- They hope that the delay will make you accept their offer. When a claim is delayed, homeowners remain without the money they need to repair their homes and return to normal life. Some insurance companies believe that a delayed claim may make the property owner more likely to accept a lower payment out of desperation to secure the money they need and move past the incident.
- They simply can’t pay your claim. After a large natural disaster such as the hurricane mentioned above, some insurance companies may be scrambling to make all of the payments that they are obligated to make. In these cases, they may simply pay some claims and drag their feet on others while they try to solve their money woes.
- They are retaliating against you. If you have made a fuss or acted in any way that angered your insurance company, it is possible that they are delaying their claim payment for personal reasons. Does this seem extremely immature and inappropriate? Yes, but it has happened!
If your homeowner’s insurance claim has been delayed, your insurance company may be acting in bad faith. To learn more about your rights and your legal options, speak to one of our residential claim attorneys today at 888-614-7730.