Most people have experienced the frustration of finding out they are not going to receive the insurance compensation they believe they were owed. Whether for damages from car accidents or water damages to their homes home, many policyholders exit the insurance claim process wiser to insurance company policies — and with a check that only partially covers their losses. For some policyholders, though, the insurance company services their claim in bad faith, deliberately sidelining compensation when it is most needed.
The two-faced nature of insurance companies in the United States is well known. Advertising themselves as a friend when you are in need, few insurance companies pay quickly and liberally when the time comes to pay out. Bad faith insurance practices intentionally work to deter a policyholder from collecting on a legitimate insurance claim.
Filing a complaint with the Iowa Insurance Division is important if you believe an insurer is acting in bad faith. Classic signs of bad faith insurance dealings include delay, defend and deny tactics that often look like this:
- A properly submitted insurance claim is lost. Upon resubmission, processing time stretches into weeks or months, as the insurance company delays action on a claim.
- After submitting a claim, an insurance company may interpret policy language, limits and time requirements in a confusing way intended to deter policyholders from making a claim under their policy.
- Insurance companies frequently deny claims as a first or last measure to avoid paying on a legitimately held policy.
If you have a question about your insurance company or a claim that is denied, speak with our attorneys in Des Moines.