People obtain insurance policies for a variety of purposes. Many times, there is a legal or contractual obligation to have insurance. That applies to motor vehicle insurance, as well as homeowners insurance if you have a mortgage. Other times, people take out special insurance policies to offer themselves or their family some degree of financial protection.
Regardless of why you purchased an insurance policy, you no doubt rely on it in the event that something happens. Perhaps a tree fell on your garage during a serious windstorm. Maybe you got into a car accident, and you can't work because of how bad your injuries are. When you file a claim, you do so because you are depending on that coverage to cover your costs and protect you and your family.
Tragically, some insurance companies do everything in their power to avoid paying out on legitimate claims. This practice, known as bad faith insurance, leaves policyholders vulnerable to financial devastation. Thankfully, the law in Kentucky allows you to take action against your insurance company if they deny your claim in bad faith.
How can you tell if a denial is in bad faith?
All too often, insurance companies deliberately mislead policyholders about the reasons for a bad-faith denial. They may claim that the denial is due to a violation of the terms of the policy, the lack of timely payment on the policy or even because the policy doesn't offer that form of coverage. Too many individuals will take this kind of denial at face value, instead of carefully reviewing their own records.
You could very well have coverage, but the insurance company wants to deny it to avoid paying any claims. Reviewing your insurance policy carefully is the first step toward determining if a denial was in bad faith. This stuff can prove difficult for many people, as the jargon is in insurance policies may confuse the average person.
Attorneys who have experience with bad faith insurance claims can help you make sense of your policy documents and determine whether you have the coverage for the claim. From there, you can explore if a bad faith insurance claim demands that you take legal action in court.
An attorney can help you negotiate and even litigate
Occasionally, an insurance company simply needs to see that a policyholder is serious about connecting with the benefits their policy entitles them to. Simply retaining the service of an attorney and having them reach out to the insurance company may be enough to motivate them to review your claim and approve it.
Other times, you will have to sit down with an arbitrator, if your contract with a company requires it. In some cases, the next step is to take civil action against your insurance company. The right lawyer can guide you through each step of the process and help you connect with the coverage you deserve after paying your policy for all those years.