You pay for insurance on your home or your business because you expect the policy to protect you if something unexpected happens. In the event of a fire or shutdown that you can’t control, that insurance could help you rebuild or meet all of your expenses until you can resume operations.
Unfortunately, some insurance companies will intentionally engage in bad faith insurance practices to deny people the coverage that they require. What does bad faith insurance look like?
Trying to change the terms of the policy
It can be quite hard to make sense of the dense language in an insurance policy, but if you know that your claim falls under the policy you purchased, the company should cover your losses according to the terms in your existing policy paperwork.
If you do not currently have a deductible, they should not impose one by informing you of changes to your policy right after you submit a claim. The same rule would apply to increases in your deductible or the sudden addition of exclusions of coverage that you are not aware of before.
Denying a valid claim
Sometimes, rather than trying to get you to pay more of the costs associated with your claim, the insurance company will instead just deny coverage. They might fabricate a reason or refuse to communicate with you about the denial.
Inappropriate settlement offers
Some insurance adjusters will offer a lump-sum settlement for a claim with multiple losses rather than paying out multiple, individual expenses. Manipulating or tricking someone into accepting far less than they need and that the policy would cover is an example of bad faith insurance.
If you identify bad faith insurance practices, you have the option of holding the insurance company to account. Fighting back against inappropriate insurance practices can help you get the coverage that you have paid for.