What is Bad Faith Insurance?

You pay your premiums on time. You keep your end of the deal, and you expect your insurance company to do the same when you need them most. But what happens when they don’t? What happens when the company you trusted turns its back on you, delays your claim, or refuses to pay what you’re rightfully owed? That’s what’s known as bad faith insurance, and if you’ve found yourself caught in a situation like this, you’re not alone, and the dedicated insurance dispute lawyers at Gruber, Colabella, Thompson, Hiben & Montella are here to help. Continue reading and reach out to our legal team to learn more. Here are some of the questions you may have:

What Does It Mean When an Insurance Company Acts in Bad Faith?

At its core, bad faith occurs when an insurance company fails to handle your claim honestly, reasonably, and in good faith. They have a legal duty to treat you fairly. When they don’t, they can, and should, be held accountable. Some of the most common examples of bad faith are as follows:

• Refusing to properly investigate your claim
• Unreasonably delaying payments
• Denying your claim without a valid explanation
• Offering a settlement far lower than what your claim is actually worth
• Misrepresenting the terms or coverage of your policy

Sometimes, bad faith even goes further. An insurer might ignore evidence that supports your claim, fail to return your calls, or tell you that you don’t have coverage when you clearly do. These tactics are all designed to wear you down until you give up. You don’t have to.

How Can You Tell if You’re Dealing With Bad Faith?

The truth is, most people don’t realize their insurer is acting in bad faith right away. The process can be confusing and full of red tape, which often makes you second-guess yourself. Maybe you’ve been waiting months for a response. Maybe you’ve received excuse after excuse. Or maybe they made an offer that doesn’t even begin to cover your losses. These are all signs that something isn’t right.

Keep detailed records of every conversation, letter, and email. Save copies of your policy and any documentation you’ve submitted. The more information you have, the easier it will be for an attorney to see what’s really going on. Bad faith isn’t just about slow paperwork; it’s about an insurance company putting profits before people.

What Should You Do If You Suspect Bad Faith?

If you believe your insurance company has wronged you, don’t wait for them to suddenly do the right thing. Speak with a New Jersey insurance dispute lawyer who understands how these companies operate and who knows how to hold them accountable. A skilled attorney can review your claim, identify violations, and take legal action to recover what you’re owed, including additional damages for the insurer’s misconduct.

At the end of the day, insurance companies rely on the idea that you’ll give up. But with the right legal help, you don’t have to. You paid for protection, and you deserve to get it. If your claim has been unfairly denied, delayed, or underpaid, contact Gruber, Colabella, Thompson, Hiben & Montella for an initial consultation today.