Insurance & Bad Faith
Sacramento Insurance Bad Faith Lawyer, California Insurance Bad Faith Attorney
When you purchase insurance it is as protection against a loss, an injury, or a catastrophic event such as fire and flood. Once the insurance is purchased, you assume you are protected, and will routinely be compensated if an adverse occurs. This is not always true. As many consumers can tell you, insurance companies look for ways to deny claims. At times the reasons they deny claims make no sense and are unsubstantiated.
An insurance company’s avoidance of paying justified claims has come to be known as "bad faith." Since you place your "faith" in your insurance company, that is, believe their promises, when you buy a policy from them, then "bad faith" is simply the insurance company's breach of your trust. You are betrayed when they deny your claim based on an insincere, fraudulent, or false reason.
"Bad faith" can also be the result of your insurance company's refusal to pay the full benefits shown on your contract. For example, if you are injured in Sacramento or Elk Grove, CA, the medical bills to treat that injury total up to $25,000, but your insurance company agrees to only pay $15,000. If the hospitals and doctors do not accept the insurance company’s payment as full payment, then you are stuck for the $10,000 difference…after paying premiums so you would have the full $25,000 coverage.
When an insurer denies your claim, they may have a good reason. Surprisingly, there may also be no reason at all. Consumers frequently feel that they must agree to a denial of benefits. This is not true. You can question any denial, ask for the reason, and then challenge the decision. An insurance company makes the most money when it does not pay out, so avoid paying if at all legally possible. Insurance companies make money from collecting premiums from policyholders. They may lose money if they have to pay out on a lot of claims to the full face value. Bear that in mind when you submit your claim. Keep complete documentation, and then pursue any claim denial with diligence. Don’t just sit there and take it! Your best weapon in dealing with a disputed claim is you.
There may be times when despite your diligence and documentation, the insurance company won’t budge and won’t pay, anywhere from not the full amount to not at all. That is when you contact us for a free consultation. We at the Law Offices of Alan M. Laskin in Sacramento and Elk Grove, CA are dedicated to making sure that your rights are protected and that insurance companies live up to the "faith" you have placed in them.
Do you feel you may have a potential bad faith case? Contact us today for a free consultation or call (916) 329-9010.