Insurance Bad Faith
Residential homeowners and commercial property owners purchase insurance in the event of a catastrophic loss to protect their investment. Insurance companies sell their policies with marketing messages of protection and trust. When a claim is filed, policyholders often find the opposite to be true: Insurance companies begin acting in bad faith. Insurance bad faith is the act of delaying, disputing, or outright denying a valid claim for no reasonable basis.
Delay, Deny & Dispute
An insurance company is a moneymaking business. They have no incentive to pay policyholders’ claims without attempting a negotiation of sorts. Although the policyholder is unaware of this negotiation, the insurance company knows exactly what it is doing when a damage claim is undervalued or damage clearly caused by a weather event is listed as normal wear and tear. An insurance company has the legal obligation to pay a policyholder’s claim in a timely fashion. To use these tactics against their own insured is a breach of good faith and fair dealing that violates the Texas Deceptive Trade Practices-Consumer Protection Act (DPTA) of 1973.