Insurance is something you hope you never have to use, but it gives you peace of mind knowing you have it if you need it. It makes sense that you expect your insurance company to come through when something unfortunate happens.
Unfortunately, that doesn’t always happen. Sometimes insurance companies unreasonably delay, deny or underpay valid claims. When an insurer fails to act fairly and honestly, it may be acting in bad faith.
Signs your insurance company may be acting unfairly
Bad faith occurs when an insurance company fails to uphold its legal duty. Wisconsin law requires insurers to investigate claims thoroughly, evaluate them reasonably and make claim decisions based on the facts and the terms of the insurance policy.
Not every denied claim is an example of bad faith. Insurance companies have the right to deny claims that are not covered or when there is a legitimate dispute about the facts.
Bad faith isn’t always obvious. Often, policyholders feel they’re getting the runaround. Every claim is different, but certain behaviors may suggest that an insurance company isn’t treating you fairly.
A common warning sign is an unreasonable delay. Weeks or months may pass without meaningful updates, or your insurer repeatedly asks for information that you’ve already provided. Their actions go beyond simple inefficiency.
Lack of investigation is another concern. An insurance company needs to review the facts before making a decision. Denying a claim without inspecting property damage, reviewing medical records or interviewing witnesses may indicate that the insurer never gave your claim proper consideration.
Poor communication can also be a red flag. If your adjuster avoids your calls, fails to explain why your claim was denied or provides inconsistent reasons for the company’s decisions, you may have reason to question the insurer’s actions.
If you are having issues with your insurance company, start by keeping detailed records of every communication. Save emails, letters, claim estimates, medical records and notes from phone conversations.
If you suspect your insurance company isn’t dealing honestly or fairly with you, you don’t need to navigate the process alone. Contact someone who can review your policy, evaluate the insurer’s conduct and help you pursue the compensation you may be entitled to.