Your home or business is a huge investment, and you’ve diligently paid your monthly insurance premiums to protect them. The best protection, you thought, until you had to file a damage claim. Now, your insurance company has gone from your “good neighbor” to your worst enemy. You’ve been fighting for months, and a fair settlement looks less and less promising. You could use some help resolving this claim. Let the Allentown property damage lawyers at Saffren & Weinberg put justice in your corner.
Who Loses When the Insurance Company Doesn’t Uphold the Terms of Their Policy?
If you’ve suffered damage to your property due to fire, water, wind, theft, or vandalism, you expect to be covered according to the terms of your insurance policy. But unfortunately, what happens is not quite so simple. Your settlement is a low-ball offer, and you feel bullied to take it. Or the insurance company misrepresents their already confusing policy jargon. Or worse yet, you find they have canceled your policy for no reason.
Although property owners must rely on the insurance industry for important protection against the unforeseen, insurance companies, as for-profit businesses, hate to pay claims. The less an insurance company pays out to policyholders, the more they retain in profits to appease shareholders. Unfortunately, there is only one loser in this scenario – you.
Insurance Bad Faith
When an insurance company fails to act in accordance with the standards of the industry and the terms of its policies, it can be considered insurance bad faith. But because they know policyholders rarely hold them legally accountable for wrongdoing, they often feel free to engage in these practices.
Insurance bad faith practices can include:
- Unreasonable denial or denial without explanation
- Failure to investigate and evaluate the claim
- Failure to obtain or secure evidence of a loss
- Failure to offer a reasonable settlement
- Failure to communicate with the policyholder
- Wrongful termination of a policy
- Misrepresentation of policy provisions
- Ignoring evidence that favors the policyholder
- Elevating insurance company interests over those of the policyholder
- Engaging in deceptive or unfair acts
- Acting in ways that deviate from insurance industry standards
Fortunately, Pennsylvania insurance laws protect a policyholder’s right to hold their insurer liable. If found liable, an insurance company can be ordered to pay above policy limits, as well as interest, penalties, economic losses, and other damages. If you feel your insurer acted in bad faith, an experienced lawyer for property damages can analyze your policy and claim and determine what kind of recourse you may have against your insurer.
How Can You Best Support Your Property Damage Claim so it Supports You
Filing a property damage claim can be daunting, but following some important steps can ensure that your claim is properly filed and supported, and you are protected.
- Locate your insurance paperwork. In this paperwork you will find your insurance company’s name, policy number, and where to call to file your claim.
- Thoroughly understand what you are covered for, your deductibles, and what items are excluded. Call your agent if you don’t understand something.
- Report the property damage to your insurance company immediately. Most companies have a deadline for reporting claims. Take note of who you spoke with at the insurance company and the date and time of your conversation.
- Assess your damages. Note what was damaged, how these damages occurred, and when you first noticed them. Take photos of all damaged areas before you attempt to clean up or make a temporary repair. Don’t throw away any damaged property until an adjuster has seen it and tells you it’s okay.
- If your home has sustained damages that require immediate attention, your insurance company should provide emergency services.
- Most insurance policies will require you to take appropriate action to protect your property from any further damage. Not doing so could put your claim at risk.
- Don’t make any permanent repairs until the adjuster for the insurance company has inspected it and you have reached an agreement. Making repairs before an adjuster has seen the damage can put your claim at risk.
- Save receipts for any repairs or mitigation efforts you’ve made.
- Hire only local, licensed, competent contractors or other professionals to help with the evaluation of damages or other valuations.
- Do not sign anything or accept any settlement check without understanding what it is for and agreeing. You could be putting your legal rights in jeopardy.
After the Claim is Filed
After reporting your loss, your adjuster will document any loss with your insurer to determine how the claim will be settled. Adjusters are supposed to know state laws and claim regulations, but it is still up to you to make sure the adjuster is valuing your losses correctly. By law, your insurance company then has 15 business days to respond to your claim in writing, advising you if the claim has been accepted or denied.
While this is how the claims process is meant to work, it is not always this simple. Disagreements often arise between a policyholder and the insurance company. The insurance company may come back with new requirements. Or the insurance company may deny the claim outright or act in other ways that would be considered bad faith.
Legal Protections if You Have Been Treated Unlawfully by Your Insurer
Fortunately, regulations exist in Pennsylvania that dictate how insurance companies must handle claims and treat policyholders. Both Pennsylvania’s Unfair Insurance Practices Act (UIPA) and Pennsylvania Bad Faith Statute help protect policyholders from insurance companies’ unscrupulous actions and bad faith practices.
Although most people would prefer not to have to litigate to resolve an insurance claim, the insurance companies know this. If you feel you have been treated unfairly or unlawfully by the insurance company, consulting with a property damage attorney in Allentown can offer you your best chance for a successful resolution. In most cases, through successful negotiation, a property damage claim will get settled before it ever makes it to court.
Don’t continue to fight with an insurance company that is acting in bad faith. You want someone who can advocate on your behalf so you can get a fair settlement for your losses. Let us help.
At Saffren & Weinberg, our skilled Allentown property damage lawyers can help you resolve your property damage claim. Furthermore, if your insurer has acted in bad faith, you may be entitled to damages. Call us at (215) 576-0100 or contact us through our online contact form to schedule a no-cost case evaluation.
Disclosure:
This website is designed to provide only general information. The information presented on this website is not formal legal advice. You should not rely on any general information from any source for making legal decisions. Each legal matter is unique and requires specific attention from a qualified and experienced attorney. Unless a representation agreement has been signed with Saffren & Weinberg, we are not your legal representatives.