You pay insurance premiums in the hope that your insurance company will pay or help pay your costs if something happens. You and your insurance company both have obligations to each other that are spelled out in a written contract.
When an insurance company does not fulfill their obligations under your contract, they could be acting in bad faith.
This could be through denying your claim or taking too long to investigate your claim and issue a decision. They might also keep asking you for unnecessary documents or information or try to argue that the contract language permits them to deny your claim.
The reason for acting in bad faith is usually the same: the insurance company wants to avoid paying your claim.
What is probably not bad faith
It can be difficult to tell if your insurance company is acting in bad faith. The insurance claim process is rarely easy. There are usually some issues along the way.
People make mistakes. Interpreting the dense language of an insurance contract is not easy and sometimes your claim is denied because of an honest mistake.
You may also be asked to provide more information or documentation because it is legitimately needed to properly analyze your claim and not to avoid paying your claim. These are not necessarily signs of bad faith
When investigating a claim, your insurance company will likely send an adjuster out to estimate the amount of damage. A difference of opinion with an insurance adjuster is not bad faith.
What could be bad faith
Bad faith occurs when an insurance company intentionally tries to find evidence to deny your claim. Additionally, if an adjuster cannot provide reasons for their estimate, there is a chance they are acting in bad faith.
You should review your insurance contract language carefully to determine if the insurance company is acting in bad faith. Having the contract reviewed by a professional can also be helpful.