Bad Faith Insurance
Once you purchase your insurance coverage, it is your duty to pay your premiums without fail. When you dutifully pay your premiums, you expect that your insurance company will uphold its promise of responding to your claims or claims filed by third parties on time and fairly. Unfortunately, more often than not, insurance holders learn the hard way that most insurance companies are only concerned about protecting their interests. Many Floridians find out the hard way that many insurers will do anything to get out of compensating insureds.
An insurer acts in bad faith when they do things such as unreasonably denying a claim, delaying payment, failing to investigate, or negligently investigating a claim.
If you are a victim of bad faith insurance, you should know that insurance companies have an obligation to act in good faith and failure to act in good faith is a violation of state law. Therefore, you are allowed to take legal action against an insurer that acts in bad faith.
Types of Bad Faith Insurance in Florida
Generally, there are two types of bad faith insurance in Florida: first- and third-party bad faith insurance.
First-Party Bad Faith Insurance
First-party bad faith insurance happens after you file an insurance claim with your insurance company, only for the insurer to act in bad faith. Such bad faith insurance can arise if your insurer unreasonably denies your claim, fails to investigate your claim properly, or delays your payment.
Third-Party Bad Faith Insurance
Third-party bad faith insurance happens when another person files a lawsuit against you, only for your insurance company to act in bad faith towards you. You are a victim of third-party bad faith insurance if your insurer fails to defend you after another person files a lawsuit against your insurance coverage. Even when an insurer defends an insured, an insured can fall victim to third-party bad faith insurance if their insurer negligently defends them. Additionally, third-party bad faith insurance arises when insurers fail to settle. You might be subjected to excess liability if your insurance company fails to settle a claim filed against you by a third party.
Many other actions can constitute bad faith insurance. So, if you think you are a victim of either first- or third-party bad faith insurance, consult a qualified attorney to find out if you have a case. Additionally, it is essential to note that some actions, such as your insurer sharing a different opinion from yours, do not constitute bad faith.
Handling Bad Faith Insurance
The best way for you to handle bad faith insurance is for you to involve a qualified attorney. It would be best for you to avoid confronting your insurer without expert help.
Legal Help Is Available
If you believe you have a bad faith insurance case, talk to a qualified attorney to discuss your case. Reach out to our Tampa personal injury lawyers at the Pendas Law Firm to learn whether you have a bad faith insurance claim. If your insurer is acting in bad faith towards you, meaning you have a case, we can help you explore your legal options. Contact us today to schedule a free, no-obligation consultation.
The Pendas Law represents clients also in the Orlando, Jacksonville, Daytona Beach, Ocala, Bradenton, Fort Myers, Fort Lauderdale, Miami, and West Palm Beach areas.