Many of us will file an insurance claim for something at some point. However, insurance companies do not always follow the rules, and insurance customers are duped out of money. If you believe your insurance claim was denied in bad faith, ask an attorney for help.
Insurance companies may act in bad faith by denying valid claims or engaging in a whole host of other deceptive practices. In many cases, the insurance company is not just acting in bad faith; they are acting illegally. You may sue your insurance company for bad faith dealings to get your claim covered. You may also claim various other damages you incurred because of the insurance company’s actions. To prove these claims, we need evidence. Your insurance policy and the denial letter sent to you from the insurance company may be crucial pieces of the evidentiary puzzle.
Get a free, confidential case evaluation from our bad faith insurance lawyers when you call Cap City Injury Attorneys at (512) 612-3110.
How Insurance Companies Act in Bad Faith
Insurance companies might act in bad faith in numerous ways. In many cases, bad faith involves the insurance company denying a claim that is actually valid and should be paid. Texas insurance laws have spelled out numerous unfair insurance practices that may be considered bad faith and are illegal.
This includes, but is not limited to, misrepresenting important facts about coverage, failing to acknowledge or process claims, failing to investigate certain claims, and compelling a policyholder to sue by offering an insufficient settlement.
It can be difficult to know when an insurance company is dealing in bad faith. The laws and regulations surrounding the insurance industry are so complex that it is often extremely hard to know when the rules have been broken. Our bad faith insurance attorneys will review your policy and the actions taken by the insurance company to determine if bad faith is an issue.
Can I Sue an Insurance Company for Bad Faith Dealing in Austin, TX?
You can sue an insurance company if you believe they have been dealing in bad faith. In many cases, insurance companies refuse to respond to anything unless compelled to do so by a court of law.
First, we must determine whether the insurance company actually acted in bad faith. If your claim was denied, we should review the denial letter. The letter should explain why the claim was denied and how you can appeal the denial. If you never received such a letter, or the letter is overly vague, this may be a sign of bad faith.
We should also compare the insurance company’s actions and reasons for the denial against the terms of your insurance policy. Sometimes, claims are very clearly covered by the policy terms, and bad faith dealings are obvious.
Damages You Can Claim When an Insurance Company Acts in Bad Faith
When suing an insurance company for bad faith, you may claim a whole host of damages. Your attorney should make sure that you claim all possible compensation and that nothing is left out.
First, we should account for the value of your initial claim that was denied in bad faith. Depending on your situation, this might be a large sum of money. For example, claims for things like severe car accidents or house fires tend to be substantial.
Next, we should claim your legal fees as part of your damages. It would be unfair for you to pay legal fees because the insurance company left you no choice but to take legal action.
We should also assess additional damages you may claim. For example, according to Tex. Civ. Prac. & Rem. Code § 41.003(a), punitive damages may be awarded if the plaintiff shows that the defendant committed fraud. This may apply to bad faith claims against insurance companies.
How to Prove an Insurance Company Acted in Bad Faith in Austin, TX
To prove that the insurance company acted in bad faith, we need to compile as much evidence as possible.
Remember, the insurance company should have sent you a letter explaining why your claim was denied. This letter may be crucial to your case. The reasons provided in the letter may be baseless or even illegal. According to Tex. Ins. Code § 542.056(a), the insurance company must send this letter. If they did not, tell your attorney immediately.
We must also get a copy of your insurance policy. The policy is a contract between you and the insurance company that explains exactly what claims should be paid and how. If the policy terms have clearly been broken, this is a good indication that the insurance company is dealing in bad faith.
It is also a good idea to save any written communications with the insurance company. This includes letters, emails, and even notes about phone calls. When acting in bad faith, insurance companies may say one thing while doing another.
How Your Lawyer Can Help You if an Insurance Claim is Denied in Bad Faith
Dealing with insurance companies is rarely easy. Dealing with an insurance company that is acting in bad faith may be impossible, at least on your own. An attorney can help you file your case and get the compensation you are entitled to.
First, your lawyer should handle all communications with the insurance company. Insurance companies often rely on average people not knowing the law or how to navigate the insurance process. Attorneys tend to have experience with this, and insurance companies may have a harder time denying your claim.
Second, your lawyer should gather records and evidence to build your case. This includes copies of your policy, the denial letter from the insurance company, emails, letters, and more. They can then review all this information to determine if bad faith occurred and how to prove it.
Contact Our Bad Faith Insurance Lawyers for Legal Help Now
Get a free, confidential case evaluation from our bad faith insurance lawyers when you call Cap City Injury Attorneys at (512) 612-3110.