Importance of Understanding Your Insurance Policy
When you buy insurance, you expect your insurance company to honor your coverage without issue. Unfortunately, this isn’t always the case. Some insurance companies can make the claims process difficult, even for policyholders with legitimate claims, by denying or failing to uphold their agreements. This can leave you financially stranded when you have been banking on your insurer to come through during a challenging situation. This article discusses the importance of understanding your insurance policy, the legal steps you can take if your insurer acts in bad faith, and how an attorney can help you fight back. If you’re facing an unfair denial or suspect your insurer isn’t acting fairly, keep reading to learn how to protect yourself.
The Importance of an Insurance Policy and Why You Should Read It Before Filing a Claim
An insurance policy is a contract where you pay insurance premiums, and in return, your insurance company agrees to compensate you for specific losses outlined in your policy. This way, the insurance policy acts as a crucial safety net, protecting you when the unexpected happens and ensuring you recover after an accident, illness, or disaster. However, when your insurance fails to uphold its end of the bargain, you may end up covering the same losses you religiously paid premiums for out of pocket.
Unfortunately, many policyholders don’t read their insurance policies until after a claim has been denied. However, reading and understanding your policy before filing a claim is one of the best ways to protect yourself. This ensures you know what your coverage includes and what exclusions may apply. This also ensures that you comply with any and all post-loss conditions before filing your claim, and that you file your claim in the proper manner. Knowing your rights under the policy can prevent unfair denials and help you fight for your rights if the insurer tries to avoid paying.
Additionally, it’s important to note the insurance company may initially misrepresent what’s covered in your policy, only to find out later (when filing a claim) that you do not have the coverage you think you have. By reviewing your policy early, you can identify any misrepresentations or gaps in your coverage and address them before an emergency arises. Being informed is your best defense against an insurance company that may try to deny or downplay the extent of your damages.
What To Do if Your Insurer Acts in Bad Faith
Bad faith occurs when an insurance company fails to act fairly and honestly towards its insured by, for example, denying claims, delaying payouts, or misrepresenting policy terms to avoid paying what you’re owed. If you suspect bad faith, you need to take immediate action. First, carefully review your policy to confirm what you’re entitled to. Then, document every communication with your insurer, keeping track of emails, phone calls, and written correspondence. Gather supporting evidence, such as medical records, repair estimates, or any proof that strengthens your claim. Seek legal help from an experienced insurance attorney early on for expert guidance in the claims process and assistance in avoiding any pitfalls.
The Role of an Attorney in Bad Faith Insurance Disputes
When dealing with an insurance company that refuses to honor your policy, having an attorney experienced in bad faith insurance claims on your side is essential. In most cases, involving an attorney can pressure the insurer to take your claim seriously and pay out the compensation you deserve. If they still refuse, your lawyer can take further legal action, potentially filing a lawsuit for bad faith denial and/or breach of their obligations under the insurance policy.
Contact an Experienced Tampa Insurance Coverage Attorney Today
If you suspect your insurance company is acting in bad faith, contact our experienced Tampa insurance coverage attorneys at Gunn Law Group P.A. today to protect your rights and secure the compensation you deserve.
