Bad faith claims focus on securing you coverage from your insurance carrier for an event that the company initially declines to pay for. The essence of bad faith is a breach of the “covenant of good faith” between you and your insurance company because you have a contractual relationship – an insurance policy – you paid for that requires the insurance company to pay claims that you make.
However, insurance companies have an interest in keeping as much of the money you pay them in premiums by either rejecting claims outright or undervaluing claims.
If Your Insurance Company Wrongly Denied Your Claim
Our job at Varlack Legal Services is to investigate the claim you feel was not handled properly and to take action against your insurance company if we decide that they did not act in good faith.
Contact VLS for a free consultation about how we can help you if your insurer wrongly denied or undervalued your claim. Based in Hayward, California, we serve clients throughout the San Francisco Bay area and beyond.
What Makes a Bad Faith Claim?
Examples of bad faith include the insurance company delaying an investigation, delaying its decision on your claim, not investigating the claim properly, or denying the claim when our investigation reveals that the claim should have been paid.
Here’s what California law says you would need to show at trial to recover for bad faith when you claim that the insurance company acted unreasonably, that is, without proper cause, by failing to conduct a proper investigation of your claim. You would need to prove that:
- You suffered a loss covered under an insurance policy issued by the insurance company;
- You properly presented a claim to the insurance company to be compensated for the loss;
- The insurance company failed to conduct a full, fair, prompt, and thorough investigation of all of the bases of your claim;
- You were harmed; and
- The insurance company’s failure to properly investigate the claim was a substantial factor in causing your harm.
If you successfully challenge the denial, you will win your claim and may be able to get your fees for attorney services reimbursed.
Free Consultation if You Think Your Insurance Company Acted in Bad Faith
If you think that your insurance company has acted in bad faith in handling your claim, contact VLS today for a free consultation.