It is not uncommon for claims payments to be delayed. There are numerous legitimate reasons for delays such as insufficient information or errors in the submitted documents. But just as there are valid reasons for delays, there are also times when an insurance company may intentionally delay claims.
When this happens, you may be dealing with a case of bad faith insurance.
Why insurers deliberately delay claims
Delaying the claims process can benefit insurers in several ways. Perhaps the biggest reason is to wear you down. The longer the delay, the more desperate your need for financial compensation can become. This is particularly true if you are counting on the insurance payout for bills and other important expenses related to the incident.
As such, the more extended insurance companies can delay your claim, the more likely you are to accept a lower offer in exchange for an immediate payout.
How bad faith insurers can delay your claims
Intentionally and excessively delaying the claims process is a common red flag of bad faith insurance. These delays can come in various forms such as:
- Failing to inform you of required documents or necessary information
- Failing to investigate the case adequately or immediately
- Requesting repeat inspections without valid reasons
- Requesting unnecessary documentation
- Not reaching out to relevant parties in the case
- Refusing to communicate properly or in a timely manner
- Stalling investigations through an insurance claims adjuster
All the above reasons are potential signs of intentional yet unreasonable delays and bad faith insurance tactics. However, a bigger red flag is simply delaying your claim without providing any reason or explanation at all.
Take action against bad faith insurance tactics
Bad faith insurance can happen with any type of claim – from auto and home insurance to even life insurance. If you suspect your insurance company may be intentionally delaying your claim without proper or valid reasons, then it may be time to seek legal advice.
A legal professional can guide you through the process of filing a complaint. They can help you understand your rights and policy better, as well as help you receive the compensation you deserve.