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Why would your insurance company cause unreasonable delays?

On Behalf of | Oct 4, 2024 | Bad Faith Insurance

Insurance companies may act in bad faith, and you may need to take legal action against your own insurance provider if this happens. After all, it can prevent you from getting the payout that you need. Legal action is sometimes needed to get the insurance company to process your claim correctly. 

One example of bad faith is when the insurance company creates unreasonable delays. Say that your home is severely damaged in a storm and there’s water damage throughout the house. You file your claim, knowing that you need to start making repairs in the next few days or weeks. After all, this is the home where your family lives.

Then, the insurance company stops returning your calls. They don’t even send someone out to investigate the claim for weeks. Months go by and they still haven’t processed your claim or helped with any of the compensation. Why would they do this?

Hoping you will drop the claim

The insurance company is essentially trying to manipulate you into dropping the claim. If the unreasonable delays are too much, they hope that you will simply handle the situation on your own. This way, they don’t actually have to deny your claim and worry about litigation. They’re hoping that you will let the claim drop on your own, getting them out of the financial obligation.

That said, this is a bad-faith tactic and is illegal. Insurance companies are not obligated to pay out all claims, but they do have to operate in good faith during a denial. If it has happened to you, make sure you know exactly what legal steps to take to get the compensation you deserve.