People have various types of property, which have various values. Property that is not very expensive may not be very important for people, but most people take precautions to protect their valuable property. To help protect the property, it is common for people to have insurance. They have insurance for their vehicles, homes, lives, disabilities and illnesses, jewelry and other important property.
People generally expect that when they have damage to insured property, they will be compensated for their insurance claim. However, insurance policies can be long and complicated. Many policies will only cover certain damages or exclude payment if the damage occurred in a certain way. Claim denials for these reasons are legal. There are times that insurance companies act in bad faith when they deny claims though.
Examples of insurance companies acting in bad faith
This is prohibited under Texas law and insurance companies that act in the following manner could be acting in bad faith when settling claims:
- Misrepresenting facts or a provision in the policy
- Failing to promptly settle matters when it is reasonably clear that the damage is covered by the policy or at least a portion is covered by the policy
- Failing to promptly explain a denial of a claim and offer a compromise
- Not approving or denying a claim within a reasonable time of receiving the claim
- Refusing to pay coverage for a claim because the insurance company believes a third-party may be liable
- Trying to have a policy holder sign a full release when only a partial payment on the claim is made
- Denying claims before a reasonable investigation into the claim is complete
When insurance companies act in these ways, they could be liable for the claims in addition to other damages. It is important that people can rely on their insurance companies when they need to make a claim. That is why insurance companies are regulated and there are laws prohibiting them from acting in bad faith.
It can be devastating for people in Texas when their insurance company denies their claim. After a denial, it can be valuable to take a second look at the policy to determine if the insurance company is acting in bad faith. Experienced attorneys understand bad faith claims and may be able to guide one through the process.