When someone speaks of bad faith by an insurance company, they are generally speaking about a kind of illegal or dishonest tactic used by the provider to deny or underpay a claim.
Metairie, LA – Homeowners pay for coverage on their homes with the expectation and their insurance provider will assist them after damage caused by hurricanes, other kinds of severe weather, or other sources of damage. However, the amount of time and effort a person may have to invest to try to get answers from their provider and a satisfactory payment can be exhausting. It is even possible that a very low payout can be offered by the company for some fairly underhanded reasons.
There are attorneys near me who focus on insurance issues, and they can provide more information about this process and how to deal with an uncooperative insurance company.
Reasons for underpaid insurance claims
Insurance companies are always looking to maximize profits like any other business. However, it is possible that they can do this by illegitimate or unethical means in some cases. If large volumes of claims are underpaid, this can result in very significant savings for the insurance provider. This is especially true considering many homeowners do not notice when a claim is denied or underpaid for an improper reason, and the insurance company never has to answer for their behavior. However, all people who have paid for coverage have the right to contact their insurance company and ask for a formal explanation of the reason for the low payout in writing. This evidence can potentially be used against the insurance company at a later time if further action is needed.
For assistance with reviewing the claim and payouts, there are Metairie underpaid insurance claims lawyers.
Bad faith tactics to underpay claims
When someone speaks of bad faith by an insurance company, they are generally speaking about a kind of illegal or dishonest tactic used by the provider to deny or underpay a claim. This can happen by misinforming the policyholder about their terms, using false calculations, improper pricing of repairs or materials, or issuing a denial without any proper justification. As terrible as this practice sounds, insurance companies face lawsuits and other penalties for bad faith dealings all of the time in Louisiana and other states, and consumers end up bearing the costs of these illegal actions. Such practices are one of the reasons why the government regulates and monitors the insurance industry, as they actively work with citizens to avoid Metairie underpaid insurance claims.
Advice from a local insurance attorney
There are lawyers in the Metairie area who dedicate their time to working with people who have experienced denied or underpaid insurance claims. Houghtaling Law Firm is available to consult with anyone who needs additional advice.