Insurance policies are often thought as safety nets that will be there to protect us when we are in an accident, when we are injured or when something bad happens. While people may be diligent about paying their premiums and having coverage for their cars, homes, health, etc., the facts are that:
- Insurance companies (like casinos) will always take your money but are typically very hesitant to make payouts. This is because many insurers are more focused in their own profits instead of doing the ethical thing or looking out for the wellbeing of their policyholders.
- This means that many insurers do not always hold up their end of the policy contract when policyholders file claims.
- When this happens, insurance companies may be acting in bad faith, and policyholders will likely be able to go after the insurer for the compensation they deserve (as well as possibly punitive damages).
Here and in two upcoming blogs, we will discuss some of the most common signs of insurance bad faith that everyone should be familiar with. If you end up making a claim with your insurer and recognize at least one of these signs of bad faith, it’s likely time to talk with one of our trusted Boulder insurance dispute attorneys to learn more about your rights and best options for getting the payouts you deserve.
Bad Faith Sign 1: Your insurer says you don’t have an active policy.
This is a common way that insurance companies practice bad faith, and it may be referred to as post-claim underwriting. What happens with this type of bad faith practice is that:
- Policyholders pay all of their premiums on time.
- They trust they have an active policy, as the insurer never tells them otherwise (and accepts all of their payments)
- They get into an accident and file a claim against their policy.
- The insurer responds that they don’t have an active policy.
In such cases, insurers may try to claim that policyholders have missed a payment or that some other factor has resulted in the cancelation of their policy. However, if insurers have never notified policyholders of the cancelation of their policy and have accepted all of the policyholder’s payments towards the policy, then it’s likely in these cases that the insurer is acting in bad faith to try to avoid paying the policyholder.
Stay posted for the upcoming second and third parts of this blog for some more common examples of how insurance companies can try to avoid paying policyholders for their valid claims.
Contacting the Boulder Insurance Dispute Lawyers at the Cederberg Law Firm
If you are embroiled in a dispute with your insurance company, don’t try to fight the company on your own. Instead, contact the Boulder insurance dispute lawyers at the Cederberg Law Firm. We are skilled at going up against insurers, proving when they have acted in bad faith, and ultimately helping our clients get the compensation and settlements to which they are entitled.
We offer free, no obligations consultations to people battling insurance companies, and we are ready to help them fight for their rights. To set up a meeting with one of our skilled and trusted attorneys, you can call us at 303-499-0449 or email us using the form one the side of the screen. For individuals who choose to move forward with us, we will not charge them any legal fees until or unless we are able to get them compensation for their claims.