Insurance Bad Faith Warning Signs: What You Need to Know

At The Law Offices of Kenneth G. Egan, we’re all too familiar with the headaches and distress that can arise when dealing with insurance claims. In our experience as bad faith attorneys near Las Cruces, New Mexico, we’ve observed that many are unaware of the warning signs that might indicate they’re being taken advantage of by their insurance company. Being aware of these signs is crucial, as it can make the difference between receiving the compensation you deserve and being left in the lurch.

Understanding Insurance Bad Faith

Firstly, it’s vital to grasp what “bad faith” means in the context of insurance. At its core, insurance bad faith refers to instances where insurance companies don’t deal fairly with the people they insure, breaking the promise to act in good faith and fair dealing.

Here are three primary examples of insurance bad faith:

Denial of a legitimate claim: It’s the most widespread example. Insurance companies must provide a valid reason for denial, such as policy violations or lack of coverage.
Unreasonable delay in processing a claim: Timely claims processing is a duty, and any unreasonable delays can signal bad faith.
Failure to investigate a claim thoroughly: A half-hearted investigation or none at all is another red flag.

Warning Signs of Insurance Bad Faith near Las Cruces, New Mexico

If you’re dealing with an insurance claim, remain vigilant for the following warning signs:

Your claim gets denied without a clear, valid reason.
There’s an unreasonable delay in processing your claim.
The insurance company avoids a thorough investigation of your claim.
A sudden breakdown in communication or lack of updates about your claim from the insurance side.
Threats or intimidations directed at you.
An initial settlement offer that feels insultingly low, far from what you believe you’re owed.

Experiencing any of the above? It’s a clear indication that you need to consult a bad faith insurance attorney promptly.

Other Instances of Insurance Bad Faith near Las Cruces, New Mexico

Unfortunately, the signs don’t stop there. Other instances indicating potential insurance bad faith include:

Misrepresentation of the insurance policy terms.
Failure to disclose limitations or exclusions in the policy.
Unreasonable demands for proof of a covered loss.
Withholding necessary documentation upon your request.
Undue stalling tactics in the claims process.
Outright refusal to negotiate in good faith.

Find a Bad Faith Attorney near Las Cruces, New Mexico

Victims of bad faith insurance practices have legal recourse. If you believe you’ve been mistreated or deceived by your insurance company, it’s essential to act immediately. Consulting with an attorney can provide clarity on your rights, potential courses of action, and the compensation you may be entitled to.

At The Law Offices of Kenneth G. Egan, we stand ready to assist you through these challenging times. Being aware of the warning signs of bad faith can be your first defense, but remember – you’re not alone in this battle. We’re here to ensure your rights are upheld and to advocate for the justice you deserve.