If your insurance company is wrongfully denying or undervaluing your claim after you’ve suffered property damage or bodily injury, this message is crucial for you. Here’s why:
In California, there is a law known as the “bad faith” statute that prohibits insurance companies from acting unfairly or in “bad faith” towards policyholders. But what does “bad faith” entail? Some examples include:
Have you experienced any of these “bad faith” actions from your insurance company?
Although California law requires insurance companies to always act in good faith towards policyholders, they don’t always follow through. Our team of insurance bad faith attorneys at ACTS LAW, LLP regularly exposes the tactics insurance companies use to prioritize their interests over those of policyholders. We handle cases involving:
If you believe you are a victim of insurance company “bad faith,” keep reading, as I’m about to reveal your legal options.
What Insurance Companies Don’t Want You to Know…
HIRING A LAWYER WHO EXPOSES “BAD FAITH” PRACTICES CAN SHIFT THE POWER TO YOU, THE POLICYHOLDER.
When an insurance company acts in bad faith by denying or undervaluing your claim, they are failing to fulfill two separate obligations:
The first obligation is to reasonably pay your claim as specified in your policy. For instance, if your house burns down and a reasonable investigation determines the damage value to be $110,000, your policy requires a minimum payout of $110,000.
However, when an insurance company engages in “bad faith” practices (such as denying valid claims or offering lowball settlements), they also fail to fulfill the second obligation. This obligation is to “act in good faith and fair dealing” towards policyholders, as required by law.
The first obligation is a contractual one, considered a breach of contract claim… The second obligation, on the other hand, is not a breach of contract issue but rather a “bad faith tort” claim.
THIS DISTINCTION IS SIGNIFICANT. And it greatly benefits you, the policyholder. Here’s why:
If you were to sue an insurance company solely for a “breach of contract,” the maximum amount you could recover in court would be the full and fair value of your claim as specified in your policy.
However, if it can be proven that the insurance company acted in “bad faith” and there is clear evidence of oppression, malice, or even fraud, the amount you may recover can exceed the original claim value. A “bad faith tort” claim allows for punitive or exemplary damages that are not available in a “breach of contract” claim.
Punitive damages are monetary awards issued to you, the policyholder, as a form of punishment for the insurance company’s “bad faith” conduct. These damages are separate from the amount you recover for your policy coverage (breach of contract).
But that’s not all you may be entitled to…
At ACTS LAW, LLP, our insurance bad faith attorneys strive to help our clients recover not only the cost of their original claim and any available punitive damages, but also:
You shouldn’t, and our bad faith insurance attorneys are here to ensure you receive the full compensation you deserve.
The first step we recommend when an insurance company treats you unfairly is to have your case evaluated by an attorney promptly.
At ACTS LAW, LLP, our consultations are free and include a comprehensive case evaluation with an experienced bad faith insurance lawyer. It’s an invaluable opportunity for you to discuss your situation, receive timely advice, and gain insight into:
The Los Angeles bad faith insurance lawyers at ACTS LAW, LLP are on your side. Call us today for a free consultation at (888) 992-2287 or fill out our online contact form. With offices in San Diego and Los Angeles, we serve clients throughout the state.
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