Because we cannot predict what the future will bring, many people take steps to protect themselves by purchasing insurance. The idea is that an insurance policy will create peace of mind; however, when an insurance company is not there for you when you need them, this can feel like a betrayal.
When an insurance claim is denied for unjust reasons or without conducting the necessary investigation, it is possible to pursue a bad faith insurance claim action.
Bad faith insurance claim
A denied insurance claim can cause significant issues, especially when the terms of your policy illustrate that you are covered. If they believe that a denial occurred in bad faith, policyholders have the right to take action.
The first step in filing a bad faith insurance claim is the review the insurance contract.
Even if you believe you understand the policy forward and backward, it is essential that you can point to the policy when evidencing a violation of the contract created between you and the insurance company.
Essential steps to take
Once you can point to the specific provisions of your policy, you need to prove the validity of your claim.
Collect all documents and evidence that prove your claim, such as photos, reports, receipts, estimates and any correspondence with the insurance company. If the insurance company denies your claim, document the denial and provide copies of your other documentation when you request to review the claim.
If, after your request for a review, the denial still stands, the next step to take is to make a final demand.
This helps illustrate that you made attempts to settle the claim. If you still can’t reach a settlement, you could file a complaint with the Nevada Division of Insurance.
The Division of Insurance may require you and the insurer to go to mediation. If this measure does not resolve the matter, the next step is to initiate a bad faith lawsuit.
Filing a bad faith lawsuit is not an easy task; however, it can be the only way to resolve the matter. As such, it is imperative that you are fully aware of your rights and options, allowing you to take the steps necessary to protect your rights and interests.