Dealing with a property insurance company can be difficult. It's stressful when your claim is denied, delayed, or underpaid. You expect help but, instead, you find yourself facing seemingly endless problems. If your insurance company is not treating you fairly, they may be acting in bad faith under Rhode Island law. 

This blog will guide you through understanding what bad faith actions committed by an insurer look like. We'll talk about signs to watch for and steps to take if things don't seem right with how they handle your claim. By the end, I hope you'll be equipped with the knowledge to tackle this issue head-on.

What is Bad Faith Insurance?

Bad faith insurance practices happen when your insurer doesn't abide by the obligations set forth in your insurance policy or under Rhode Island law to promptly and fairly cover or settle a claim. For example, your insurer might not provide compensation for a valid claim pursuant to the policy and may deploy unfair tactics to do so.

Definition

“Bad faith” essentially means your insurance company is not playing fair. They promised to protect you and pay for damages and losses under certain conditions. But, if they do not promptly and fairly settle a valid claim, or if they make the claims process too difficult for you to navigate, they may be acting in bad faith. In doing so, they violate the trust you placed in them and simultaneously violate laws enacted to ensure justice for policyholders.

This unfair conduct can rear its ugly head in many ways, such as not looking into your claim well enough, hiding details of your agreement with them, or taking too long to handle your claims. It's as if they completely disregard their obligations under your insurance contract. In Rhode Island, this issue is serious enough that there are special rules against it. If an insurer is found to have acted in bad faith, they may be required by law to pay more than the original amount of the claim.

Examples of bad faith tactics

Some insurance companies are diligent and fair throughout the claims process. Others don't play fair. They might deny your claim without telling you why, leaving you in the dark. Or, they might offer you much less money than what your claim is actually worth—a “lowball” offer (for lack of a better term). Even still, they may interpret your policy in a wrongful manner, making it seem like you're not covered for the claim, when in reality, you are. This can be frustrating as a property owner because you're forced to contest their interpretation and fight for your rights on your own. (You're trying to compete fairly in a game the rules heavily favor one side.)

Signs Your Insurance Company May Be Acting in Bad Faith

Is your insurance company taking too long to handle your claim? Do they keep sending adjuster after adjuster to inspect the same damage over and over again, but won't tell you why? If this sounds familiar – take action and assert your rights. Your property is an expensive asset – protect it at all costs.

Continuous or excessive delays

If your insurance company takes too long to respond to your claim, think “trouble.” If it feels like your property damage claim is stuck forever, something is wrong. Insurance companies that act in good faith don't make you wait without good reason – they keep you informed. If your insurer keeps making excuses, ask questions. You have rights against bad practices by insurers who delay on purpose – assert them.

Additional inspections of the same damage

Insurance companies sometimes request repeated inspections of the same damage. I get it – it is frustrating. It feels like they are just dragging things out.

This tactic is a red flag. Insurance companies that act in good faith don't subject you and your property to multiple needless inspections. Your insurance company may not be not playing fair. Again, assert your rights to help avoid these delaying tactics.

Lack of explanation for denial

If your insurance company denies your claim without clear reasons, it might be a sign of bad faith. Your insurance company is obligated to refer to the specific policy provisions that support their denial or partial denial. If they don't, your insurance company may be violating the rules of fair play in the insurance industry.

First, ask them to explain their decision in writing. This step is important because it forces them to identify the specific reasons for their denial. Knowledge is power here; having the specific policy provisions that they relied on when denying your claim will be important to obtaining legal help if needed.

Denials referencing multiple parts of policy

Some insurance companies, on the other hand, reference too many policy provisions to support their denial. If your claim gets denied and your insurer references too many policy provisions, or if the provisions seemingly contradict themselves, seek legal assistance. An insurance bad faith lawyer can review your policy's contract language, along with the denial letter, to determine whether the claim denial is valid.

Attempting to blame the policyholder

Some insurance companies will accuse homeowners of misconduct under the policy to deny a claim. They might allege that you did something wrong to cause the damage or failed to prevent it. This is especially common with property insurance claims that involve water damage or a broken roof. The insurer might tell you it's your fault, hoping you'll just accept their decision and move on.

If your insurance company denies your claim after alleging misconduct on your part, gather all of your proof—photos, maintenance records, and any other documentation that can contest their allegations. Then, seek legal assistance to help fight back against unfair blame and obtain the compensation you deserve from insurance coverage.

Steps to Take if You Suspect Bad Faith from Your Insurer

If you suspect your insurer is acting in bad faith, become familiar with your rights and start collecting documentation.

Know your rights

You have the right to contest your insurance company's claim decision. You can appeal the claim or take legal action against an insurer who employs deceit or unfair claims practices.

Gather all documents and organize the details of your claim – documented evidence strengthens your case. Then, find a lawyer who focuses on these cases. They can offer the guidance, strategy, and legal expertise required to overturn a claim denial.

Gather evidence

Start by collecting all documents linked to your claim. This includes emails, letters from the insurer, and any paperwork showing your policy details and the damages or losses you're claiming. Photos and videos of the property damage are powerful tools. 

Next, organize the dates and details of every conversation you've had with insurance agents or adjusters. It's important to obtain quotes from contractors on repair costs as well.

Contact a bad faith insurance attorney

Contacting a bad faith insurance attorney can be crucial to obtaining fair compensation for your loss. These legal experts know how to stand up to insurance companies that don't treat claims fairly. 

By consulting an experienced lawyer, you're not just getting advice – you're gaining a powerful ally who understands contracts, lawsuits, and settlements. Your lawyer will help you navigate the legal process and obtain the best outcome for your homeowners insurance claim.

What You Should Know When Your Claim is Denied, Delayed, or Underpaid

If your insurance company denies your claim, takes too long to process and cover the claim, or doesn't provide enough compensation, seek legal assistance. Find a lawyer who knows a lot about fighting insurance companies.

Having a lawyer by your side shows your insurance company that you know your rights. If things don't seem right, get informed and get help.

Conclusion

Your insurance company is required by law to act in good faith in settling an insurance claim. But, sometimes, they get it wrong. Knowing what bad faith tactics are can help you identify delays or unclear reasons for claim denials.

If you suspect your insurance company is acting in bad faith, take steps to protect yourself. Assert your rights and gather evidence. Then, seek assistance from lawyers who handle unfair insurer practices cases.

You're not alone. Here at Conte Injury Lawyers, we have the expertise to overturn wrongful insurance claim denials and obtain compensation from insurance companies that act in bad faith. Call 888-333-9833 for a free claim evaluation and let us fight for you.