4 Examples of Bad Faith Insurance Practices
Most people buy insurance hoping their insurance company will be there for them when something goes wrong. Whether the claim involves property damage, storm losses, or is a third-party claim, people trust their insurance companies to review their claim honestly and pay what’s fair, without unnecessary hurdles. Unfortunately, things don’t always go that way.
Florida law requires insurance companies to treat policyholders with honesty and fairness. Your insurer needs to put your interests first during the claims process. If they fail to meet these obligations, it’s considered insurance bad faith. Unfortunately, it is not uncommon for insurance companies to fail to meet their obligations.
Below, we share four common examples of bad-faith insurance practices.
● Giving False or Misleading Information
You should expect accurate information from your insurance company. If a representative tells you something untrue about your policy, leaves out key details, or misrepresents the reasons for a delay or denial, the insurance company may be acting in bad faith.
For example, your insurer should not incorrectly tell you that certain damage is excluded when your policy actually provides coverage. Even innocent mistakes can cost you if they cause you to abandon a valid claim or accept a payout that’s too low.
● Conducting an Inadequate Investigation
Insurers have a legal duty to conduct a prompt and reasonable investigation before deciding whether to approve or deny a claim. That means reviewing the available evidence, inspecting the damage when appropriate, and considering all the documentation provided.
If they rush through things, skip inspections, or ignore evidence supporting coverage, it may indicate that your insurance company is not acting in good faith.
● Dragging Out the Claims Process
Indeed, some claims take time. But your insurer can’t stall for no reason. Dragging things out can put pressure on you, especially if you need money to fix your home or replace what you’ve lost.
If the insurance company keeps asking for the same paperwork, ignores your calls, or takes forever to make a decision, even though they have what they need, that’s a problem. Delays meant to push you into accepting a lower settlement are against the law.
● Wrongfully Denying or Lowballing a Valid Claim
Not all denied claims indicate bad faith. Legitimate coverage disputes sometimes arise because policies contain exclusions or factual disagreements. But refusing to pay when a claim is clearly covered, or giving an unreasonably low offer without a solid reason, isn’t right.
If your insurer ignores important evidence or what your policy says without a good excuse, you might have a bad faith claim against them, on top of your insurance dispute.
How Florida Courts Evaluate Bad Faith Claims
Judges in Florida don’t just focus on one action. Instead, they look at the big picture. They want to see if your insurer handled the claim fairly, acted reasonably, and took your claim seriously from start to finish.
They’ll look at how carefully the claim was investigated, how quickly things moved along, whether there was a good-faith effort to settle, and if both sides worked together. Every case is different, making experienced legal guidance crucial.
Contact Us for Legal Help
If your insurance company has delayed, underpaid, or unfairly denied your Florida claim, don’t assume you have no options. An experienced Tampa insurance bad faith lawyer at Gunn Law Group, P.A. can evaluate your situation, determine your options, and help protect your rights.
