The Trouble With Property Insurance

Feb 13, 2020 by

If you’ve paid attention to the news lately, you may have noticed that we’ve been experiencing a lot of natural disasters across the country. From floods and tornadoes in Texas and Louisiana to devastating fires in California, people everywhere are losing their houses and their property to natural disasters. As you might guess, this has not been great for the property insurance market.

Property insurance, like all insurance, works best for the insurers when nothing bad happens. They may say they’re there for you, but when it comes down to it, they’d rather not be. When people make insurance payments, they’re doing it so that they’ll be covered if disaster strikes. If nothing bad ever happens, the insurance company gets to keep the money. Insurance companies don’t want to have to pay for your accidents, because it’ll probably cost them more money than you’ve been paying them to cover you. 

Insurance companies don’t just give you coverage out of the goodness of their hearts; they’re running a business. That’s why high-risk cases, such as properties on the coast, are not covered by every insurance company. Sometimes, people who are covered still have their claims denied. Insurance likes to look for any loophole they can to avoid paying for the damages to your property. If a loophole doesn’t exist, they may try to “low-ball” your claim or prolong paying for it.

What Is a “Bad Faith” Claim?

You may have heard the term “bad faith” before in relation to insurance companies. Usually, this refers to a claim that an insured person would file against an insurance company that tried to use one of these sneaky tactics on them after an accident. To have a case, the plaintiff would have to prove that the insurance company’s behavior was unreasonable beyond a shadow of a doubt. This means that the insurance company also knew they were being unreasonable. 

You can’t have a bad faith claim just because you misunderstood the terms of your coverage, or you are unsatisfied with them after the fact. However, like this property insurance law firm states on their website, insurance companies sometimes like to pretend that your coverage doesn’t extend to your damaged property when it clearly does, and that’s where a lawyer can help.

Going up alone against a large insurance company is not a good idea. It is highly unlikely that, without the help of an experienced property insurance lawyer, you’ll be able to win your case. Insurance companies have whole teams of lawyers who are ready to protect the assets of the company, so it’s not a small thing to file a bad faith claim against your insurance. However, it’s necessary that people continue to do so, if it means that insurance companies are continuously told that their shady dealings aren’t acceptable.

Hopefully, all the people who are suffering from lost and damaged property due to recent events are fairly covered by their insurance. After all, no one can plan for a natural disaster, and those who are affected by them should be able to move on with their lives as painlessly as possible.

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