Top 10 Bad Faith Insurance Claim Practices Colorado Residents Should Heed

Whether you love them or you hate them, there is simply no getting around the necessity of insurance companies. For most of our big purchases, such as automobiles and homes, having an adequate insurance policy is required by Colorado law. In many cases, you will find insurance companies to be withholding in their payouts to customers. After all, they are like any other major corporation and are there to make money. This leaves many to wonder if they can really trust their insurance company. Here you will find the top 10 bad faith insurance claim practices.

1. An insurance company delays or simply denies payment without a reasonable explanation. This is one of the most common forms of bad faith. An insurance company simply will deny payment for something that your policy clearly covers. When there is no valid excuse, it is usually worthwhile to hire a bad faith insurance attorney in Colorado to recover your deserved compensation.

 

1. An insurance company does not affirm or deny your claim within a reasonable amount of time. In this instance, an insurance company will make you wait weeks or even months to validate your claim request. It is obligated by law to ensure timely communication to its policy holders.

 

1. Insurance companies are notorious for attempting to settle your claim for far less than is deserved. This is one of the most common gripes and one of the most common reasons people will contact a bad faith insurance attorney. If you do not feel the insurance company’s payout is adequate, seek outside assistance.

 

1. In some cases, insurance companies have been known to request an outrageous amount of documentation to settle a claim. They may request paperwork that was never mentioned in your policy and may deny your claim if said paperwork is not produced.

 

1. Insurers may threaten not to pay claims. If an insurance company uses threats, this would be an example of a bad faith insurance claim. In this case, contact an insurance lawyer to see if there are legal ramifications for the company.

 

1. Companies may handle both sides of an insurance dispute. Generally your insurance agent is only allowed to handle one side of a claim. This means that they cannot legally represent you AND the other party involved. This is quite clearly a case of a conflict of interest.

 

1. An insurance company cannot drastically change your policy terms without your consent. Sometimes an insurance company will attempt to alter your policy once a claim is made to avoid the payout. This is a common (and illegal) form of a bad faith insurance claim.

 

1. Outright cancellation of an applicable policy. This is similar to the above case, but instead of a simple alteration, you will find that the policy has been cancelled. In this case, do not hesitate in contacting a bad faith insurance attorney.

 

1. The insurance company advises you not to hire an attorney. You are always entitled to hire outside legal counsel if you feel you are not being treated fairly. For an insurance company to deny you this right is in bad faith.

 

1. They use illegal forms of investigative methods. Be sure to ensure that all of your rights are being respected when the insurance company is investigating your claim. If a method seems too intrusive, then it probably is.

Contact a Bad Faith Insurance Attorney in Colorado

The law office of D.J. Banovitz is a trusted personal injury law firm in the state of Colorado and is here to help you and your family if you are dealing with bad faith insurance claim practices. Before speaking to an insurance adjuster, be sure to contact us at 1-303-300-5060 for a FREE consultation today.