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Hayward, CA – Top Signs of a Bad Faith Insurance Company | Insurance News


BY: , Your Business

Do you want to spot a bad faith insurance company? Here are a few signs to look for.  

According to the law, insurance companies are bound to handle insurance claims with good faith. Unfortunately, not all of them are of the right type, and some of them play their customers. Some go the extra mile and try to save money by denying or delaying claims. The good news is that there are some bad faith insurance claims to fight against bad faith insurance companies. With a bad faith claim, you can get higher compensation than what the claim is worth. Here are some signs to identify a bad faith insurance company, and to figure out when legal action is required.

Let’s break it down.

No Explanation for a Denial 

According to the federal law insurance companies need to explain to their clients the reasons behind denying a claim. No explanation from the insurer results in a bad faith claim. However, it doesn’t happen that often. Instead, a company may confuse with lengthy clauses in their contract. For example, they might refer to flood damage as a natural calamity and the information on it might be several pages long.

If you find it hard to comprehend these legal clauses, it is better to hire a professional attorney. Unlike your fraudulent insurer, the attorney would want you to get the best coverage for your claim. The attorney can make you understand the contract as well as the letter of denial. The bad faith claim can only be valid if you don’t agree with the insurer’s logic, and the reason doesn’t make sense for the situation you are in.

Delaying Claims 

Another sign of a bad faith insurer is if they delay payments to the policyholders. On the flipside, a good insurer will attentively listen to you and will help you conclude your case. However, sometimes an insurance company will put you through complicated processes, pass your case to different adjusters, and even refuse to pay a settlement. If such is the case with your insurer, it is better to consult an attorney.

The reason why insurance companies delay your process is that they want to deny you a recovery. For example, in a hypothetical situation, your house has been flooded, and you report it to your insurance company. To your surprise, the insurance company takes more than a month to visit your property. And even when they do show up, they’ll pay you less, and blame you for being negligent. This is a telltale sign of a bad faith insurance company. Had they showed up a little earlier, the damage might not have worsened.

Offering Low Settlement

Another sign of a bad faith insurance company is when they offer a lesser settlement, than what is necessary. Before agreeing to a settlement offer, make sure to consult an attorney. With an attorney by your side, you can get a better settlement, for the insurer knows that you have enough legal support to back yourself with.

Before you settle for an insurance company, make sure you do enough research. Also, stay in touch with a reputable attorney to help you through. With an attorney to help you out, the likelihood of finding a good faith insurer and getting a better claim is relatively higher.

“Best Best Insurance Company in Hayward, CA”

Top Rated Local Top Rated Life Insurance Agent / Agency

Alameda County: Hayward, CA


“Best Best Insurance Company in Hayward, CA”

Top Rated Local Top Rated Life Insurance Agent / Agency

Alameda County: Hayward, CA

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Hayward, CA – Top Signs of a Bad Faith Insurance Company | Insurance News