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What is bad faith insurance?

On Behalf of | Oct 21, 2022 | Bad Faith Insurance |

Perhaps your insurance provider has been twisting the language in your contract to avoid paying a claim. You could have also noticed that there are policy limitations that you did not know about when you purchased the policy, or the company could be asking for unreasonable demands. These are just a few examples of ways an insurance company can act in bad faith.

Here is more information on bad faith insurance acts and how to fight them.

What it is

You can experience bad-faith insurance with the following policies:

  • Homeowner’s
  • Health
  • Auto
  • Life

While it is not a type of insurance fraud, it is a deliberate attempt by an insurance company to not pay a claim without giving proper support. Mistakes and disagreements between you and your adjuster are not acts of bad faith.

How to fight it

Texas state laws protect against bad faith practices. First, familiarize yourself with the state’s laws and ensure your case falls within these lines. Once you have done that, get your claim started so you can receive compensation for having your claim denied wrongfully. The money you receive should cover your out-of-pocket expenses and help with lost income and legal fees due to the denied claim.

Acts of bad faith can have consequences for you. For example, you could have unnecessary financial troubles without taking the proper steps. That can cause long-term problems for you and your family. Therefore, you need to ensure you act quickly to identify acts of bad faith and start fighting them.