What can you do when your insurer acts in bad faith?

Texas citizens are in a unique position in which they must think about protecting their homes from both tornados and hurricanes. You expect your insurance company to be there for you in the event of costly property damage, but you might have to fend for yourself if the insurer acts in bad faith.

Bad faith behavior is a common subject in the field of insurance law. It is important for you to understand how your insurance company might attempt to circumvent their obligations to you and what you can do it if happens.

What constitutes bad faith in insurance?

The term “bad faith” in the insurance industry refers to behavior by which an insurer tries to avoid paying out on a customer’s reasonable claim. An insurance agent might attempt to do this by misrepresenting the terms of your contract in the hopes that you will not carefully review the documents yourself. Your insurer could also neglect to disclose the limitations of your policy, leaving you lost and confused when you need that coverage the most.

How can you respond to bad faith?

The Texas Department of Insurance offers certain protections under its Consumer Bill of Rights. To act in defense of those rights, you can present evidence to your insurance company proving that the damages fall within the scope of your insurance policy. Your insurer may respond by offering a settlement so as to avoid a costly lawsuit down the line.

While many insurance companies do not seek to take advantage of their clients, the possibility of bad faith does exist. The best course of action is to prepare a strong defense for your claim so that you can secure the compensation you need.