What is Bad Faith?

What is Bad Faith?

Millions of individuals throughout Mississippi purchase insurance policies to protect themselves, their loved ones, and their possessions in case tragedies strike. These policies are designed to prevent devastating financial complications after being harmed in a tragic incident. Whether a person is involved in a car accident, a house fire, or their loved one passes on, they typically rely on insurance policies to ensure the resulting financial burdens are covered without causing themselves, or their families, undue hardships.

When consumers purchase insurance policies, they do so under the assumption that they are going to provide them with the compensation they need and deserve to cover their damages. Insurance policies work as contracts. Consumers purchase the policies and pay monthly premiums to ensure the coverage is available for them when they need it. Unfortunately, there are countless instances where insurance companies take advantage of policyholders and fail to uphold their part of the contract. When insurance companies fail to pay out for damages, delay payment, or fail to pay out the full amount of compensation policyholders need and deserve, they are engaging in conduct referred to as “bad faith”. These actions can have a devastating impact on policyholders and can cause unjust pain and suffering.

Bad Faith Claims can arise from Various Policy Types

Unfortunately, there is no type of insurance policy that is completely safe from bad faith actions. Insurance companies wrongfully deny individuals coverage they rightfully deserve, regardless of the situation. Some of the types of insurance policies our insurance bad faith attorneys in Mississippi have helped victims file claims for include:

  • What is Bad Faith?Life Insurance: There are numerous instances where insurance companies deny coverage under burial policies. These individuals may say that the victim died within the contestability period so that the cause of death does not qualify them for benefits.
  • Fire Insurance: Insurance companies often deny claims for fire incidents by claiming that that fire was caused by arson. In some cases, insurance companies delay paying policyholders and allege that they failed to cooperate with them in coming to terms with the payment amount.
  • Homeowner’s Insurance: Most policies in Mississippi are all-risk policies. Essentially, these insurance policies cover any direct physical loss to the home. In order for an insurance company to deny any type of coverage, they must prove that the loss was not covered because it was caused by a risk that is specifically excluded. Sadly, there are countless instances where individuals are wrongfully denied coverage without proof.

Sadly, health insurance, disability benefits, and auto insurance policies are routinely subjected to bad faith actions by insurance companies. When policyholders are subjected to this type of treatment, it is crucial that they reach out to a bad faith attorney in Mississippi as soon as possible to get the justice and compensation they deserve.

Germany Law Firm, PLLC can Help You

Our team at Germany Law Firm, PLLC understands the challenges victims face after suffering a loss. The longer policyholders are forced to wait without resolution, the more they suffer – physically, emotionally, and financially. It is crucial for victims to collect the compensation they need to cover their damages so they can move forward and focus on recovering. If you have been subjected to bad faith practices by insurance companies, contact our Mississippi law firm at (601) 487-0555 to see how we can help you.