Can I File a Lawsuit Over a Delayed Claim?
Especially in cases of property damage or loss, filing an insurance claim can be trying. Further, a financial burden can result from a delayed claim, that is, from an insurance company processing and paying a claim using an irrational timeframe. If the delay is excessive or judged to be in bad faith, in some cases, you could be able to sue the insurance company.
Comprehending the Claims Procedure
Generally speaking, insurance firms are legally obligated to process a claim within a reasonable period of time after filing it. State and insurance contract definitions of "reasonable" differ; still, insurers have to look into, assess, and pay legitimate claims quickly. However, delays might arise for a variety of reasons—including complicated instances needing more research or missing records. While some delays could be reasonable, others could stem from bad faith tactics or carelessness—such as purposefully stalling to avoid settlements.
When Does A Delay Start To Be Unacceptable?
When the insurance company responds to questions, misses regular updates, or pays a claim without a good cause, a delay becomes unreasonable. The insurer can be behaving in bad faith if it misses deadlines established by state regulations or needlessly extends the inquiry. An irrational delay might be evident, for instance, if all the data is turned in and the claim is simple, yet the insurance takes months to handle the claim without explaining.
Practices in Bad Faith Insurance
Bad faith results from an insurer managing a claim acting dishonestly or irresponsibly. Bad faith can include delaying a claim without cause, rejecting a valid claim, or ineffective communication. Should your insurance provider be shown to be acting in bad faith, you might be entitled to a lawsuit. Every state has different rules on bad faith claims. Hence, it's important to know your rights and whether your case fits for legal action.
Seeking a Delayed Claim Lawsuit
Should you feel your claim has been unfairly delayed, you should give legal action against the insurance company some thought. Usually, you will need the help of an attorney focused on insurance conflicts or bad faith claims to launch a lawsuit. Apart from possible damages for financial losses resulting from the delay, including interest on the postponed payment and legal expenses, the lawsuit can seek reimbursement for the underpaid claim.
Conclusion
Should your insurance claim be unfairly delayed—especially if the delay results from bad faith—you may be entitled to bring a lawsuit. Understanding your rights, recording the delay, and consulting attorneys will help you hold the insurance company responsible for its conduct.