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4 ways your insurance policy can betray you

When you pay insurance premiums, it’s with the peace of mind that your financial well-being will be protected if disaster strikes. But what happens when the very company you rely on to fulfill that promise throws a wrench in the works? This is the unsettling reality of bad faith insurance, a situation where your insurer prioritizes profits over honoring its obligations to you, the policyholder.

Bad faith insurance isn’t limited to a specific type of coverage. It can affect homeowners in Tulsa who are facing fire damage just as readily as it can impact families in Oklahoma City struggling with a denied life insurance claim. If you’re a policyholder, it can help to explore common ways that your insurance carrier can turn against you.

Unreasonable denials and delays

This is perhaps the most common red flag. Your insurer might deny a valid claim outright, citing obscure policy exclusions or misinterpreting clear coverage language. They might also drag out the claims process excessively, leaving you financially vulnerable while they search for loopholes.

Lowball settlement offers

After a loss, you are entitled to prompt and fair settlement. Therefore, suppose your insurance provider offers a fraction of what your claim is truly worth. In that case, they’re acting in bad faith. This puts you in a difficult position, forcing you to either accept an inadequate payout or fight for what’s rightfully yours.

Inadequate investigation

A thorough investigation forms the basis for a fair claim assessment. When an insurer fails to investigate your claim properly, they might overlook crucial evidence that supports your case. This often leads to denials or lowball offers based on incomplete information.

Communication breakdowns

Open communication is vital during the claims process. But bad faith insurers might employ tactics to make communication difficult. This could involve:

  • Unanswered calls
  • Failing to provide clear explanations for decisions
  • Making unreasonable demands for documentation

Suppose you’re on the receiving end of bad faith practices. In that case, you should consider taking action. A good starting point is carefully reviewing your policy to understand your coverage details and exclusions. This can enable you to pinpoint any discrepancies in the insurer’s handling of your claim. Don’t forget to document everything that pertains to your insurance provider’s bad-faith practice.

Remember, you have rights as an insurance policyholder. Therefore, you don’t have to suffer in silence as your insurance company takes advantage of you during a vulnerable time. Understanding bad faith practices and taking proactive measures can increase your odds of securing the fair compensation you deserve.


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