When Insurance Companies Act in Bad Faith Concerning Wildfire Claims

You expect your insurance to always be there for you. You pay for your insurance and you expect that, in the tragic event of a wildfire, they will not let you down and you will be compensated for a wide variety of aspects. If you have fallen victim to the California Camp Fire, you have endured one of the worst tragedies known to California history and do not need more bad news. This is why, when an insurance company acts in bad faith and you find out that you do not have as many protections as you thought you did, you might wonder where you can turn for the help you deserve.

The Camp Fire is not the only time that many people are experiencing the reality that they could be facing bad faith claims after enduring unfair practices by their insurance companies. In fact, over the course of history, many insurance companies have gotten sued after they underestimated the cost of rebuilding following a natural disaster, according to research. Many of these people find that they will not be able to rebuild as they once thought they could or even be reimbursed for the wide variety of injuries that they have sustained at the hands of negligent parties.

The vast majority of these cases took place when insurance companies would engage in sneaky behavior, where they would make sudden changes in their policies behind the backs of the insured, leaving them in a difficult position.

This is considered bad faith by insurance companies, and we would like to take a closer look at what causes these claims to occur.

What Exactly is “Bad Faith?”  

Insurance companies owe you a duty to act in good faith, which means that if a company owes you for your damages, they cannot skirt out on this responsibility to which you are owed. If they do not investigate in full and do not comply with the policy that you have agreed to, they have acted in bad faith. If you believe that an insurance company has acted in bad faith, you will be able to bring a claim for compensation that the company owes to you so you can pick up the pieces.

Here are just a few ways that insurance companies act in bad faith regarding insurance claims:

Inadequate Processing: If your insurance company fails to properly process your claim, this could constitute bad faith. The insurance company should take a variety of steps to ensure that your claim is processed in a timely and proper fashion, such as verify your proof of losses, investigating your claim to the fullest extent, determining the amount of coverage included in your policy, appraising the amount of the loss, and either paying or denying the claim based on what is found. 

Improper Investigation: If an insurance company does not conduct a proper investigation, a bad faith claim could result. For example, what happens if you receive a claim denial even though the insurance company never sent out anybody to come take a look at the damages caused by the Camp Fire? The insurer should have legally sent an inspector to take a closer look at the damage so that they could get a better idea of what they owe you. If they have not and an investigation never commenced, you have the option to bring a claim.

Payment Delays: If the insurance company delays paying a claim even though it is considered to be a legitimate claim, this could constitute bad faith. Let’s say that you have filed your claim and you are patiently waiting for answers, but a year passes and you receive none. This is bad faith by the insurance company, who neither accepted nor denied your claim even though they had adequate time.

Unreasonable Denial: If the insurance company acts in an unreasonable way under any circumstances, this could constitute bad faith. 

Failing to Defend You: Insurance companies are supposed to defend you when third-party actions are taken. This means that, if you were to go to court over these matters, your insurance company should back you up based on the evidence in your case. If your insurer does not do this and you are left to fend for yourself even though your policy offers their support, this could be bad faith.

The Sad Reality for Many Wildfire Claims

The sad truth is that many wildfire claims are vastly underpaid or denied depending on the circumstances, which can leave many individuals in a difficult position. When businesses and homes are built in high-risk areas in California that can easily fall victim to wildfires, special fire loss insurance must be purchased. This insurance protects those who live in these areas and makes it easier for you to receive the compensation you need to move forward and rebuild if disaster strikes. However, if tragedy strikes and your insurance refuses to pay, you might find yourself in the midst of a claim.

It is not unheard of for insurance companies to deny or undervalue a claim in an intentional manner, which can make it impossible for you to get back on your feet and afford the damages in your case. If your fire insurance claim has been denied, you want to ensure that it has not been denied unfairly. Our attorneys are here to support you.

At Marlene Leiva Law Group, our accident attorneys are willing to stand by the sides of the victims who have suffered the most challenging losses in California following the Camp Fire. We would like to help you file a Camp Fire lawsuit and compensate for a wide variety of losses in your time of need. If you have suffered losses and are unsure of where to turn, please do not hesitate to contact us for more information at 415-459-7300.