You can file a bad faith lawsuit against your insurance company if they fail to meet their legal obligations under the terms of your policy. Common violations include:
- Wrongful claim denial
- Delays and incomplete claim processes
- Late payments to claimants
- Inadequate payments in relation to coverage and policy limits
- Failure to pay valid claims
Nevada State Legislatures have enacted laws to protect consumers from unscrupulous insurance practices. The Nevada state department of insurance provides protections for both insurance consumers and the general public.
Despite these protections, it’s not uncommon for you to have to sue your insurance company for bad faith practices. This often happens when you can’t resolve issues with your insurance provider through regular channels.
Dealing with property damage, personal injuries, the death of a loved one, or other misfortunes is challenging enough. Adding numerous interactions with your insurance agent or the insurer’s adjuster can feel overwhelming.
Reasons an Insurance Company May Deny Your Claim
Insurance companies have various reasons for denying claims. While some reasons are legitimate, others are not. Common reasons for denial include:
- Lack of coverage: The insurer may claim that your policy doesn’t cover your claim. Reviewing your policy’s exclusions can help clarify your coverage. Ambiguities in the policy are usually interpreted in your favor.
- Application errors: The insurer may allege that misrepresentations on your application nullify coverage.
- Claim errors: Insurance companies often have specific notification requirements for claims, sometimes as short as 24 hours. Failing to meet these timelines can lead to denial.
- Insurance fraud: Submitting false or exaggerated claims is illegal and can have severe civil and criminal consequences.
- Bad faith denial: Although an insurer won’t explicitly state this, it might provide numerous justifications, often couched in confusing policy jargon, to avoid paying a valid claim.
When Can You Sue the Insurance Company for Denying Your Claim?
Insurers have obligations to you, their policyholder, including adhering to the terms of the policy, acting in good faith, and avoiding unfair trade practices. While specific duties vary by state, common obligations include:
- Conducting timely and adequate claim investigations
- Paying claims where liability is reasonably clear
- Approving or denying claims within a reasonable timeframe
- Providing clear explanations for claim denials
- Defending you in liability lawsuits covered by the policy
- Not denying claims based on application misstatements after the contestability period has passed
If you believe your insurer improperly denied your claim, you can explore legal options, including suing the insurance company.
What Types of Legal Action Can You Take Against Your Insurance Company?
Each state has statutes and case law regulating the insurance industry, including the types of lawsuits you can bring against an insurer. Your insurance policy is a contract, and every state allows for breach of contract actions. Many states also permit bad faith tort lawsuits and claims under unfair trade practices laws specific to insurance.
Damages Available
An insurance attorney can explain the types of damages available and your chances of success. Compensatory damages, such as medical expenses and lost wages, are typically available, while punitive damages are limited to certain cases and may be restricted by state law or the court.
Tips for Suing the Insurance Company for a Denied Claim
If you’re considering suing your insurer, it’s important to be prepared and keep detailed records. Here are some tips:
- Document all correspondence with the insurance company and its representatives. Keep copies of emails and take notes of phone conversations, including dates and names of representatives.
- Maintain records of your insured property, including receipts and pictures, particularly for homeowner’s insurance policies.
- Keep track of all expenses related to your claim, such as repairs, healthcare costs, attorney fees, and lost wages.
- Choose an attorney with extensive experience in insurance litigation, as this field can be complex and time-consuming.
Can You Sue Your Insurer?
Yes, you can sue your insurer if you are unfairly compensated or your claim is denied. If you’ve been in a car accident or faced another issue and are having difficulties with your claim, seek legal assistance. An experienced attorney can help you navigate the process and potentially secure a fair settlement.
Don’t Fight Your Insurance Company Alone
If you’re at the point of considering legal action against your insurance company, it’s crucial to consult with Bay Law Accident Attorneys. We can defend your interests and help you deal with an uncooperative insurer. The insurance company will likely have a team of experienced lawyers, so level the playing field by contacting Bay Law and Make Them Pay with Bay!.