Insurance Disputes: Home, Automobile and Life Insurance

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When claims occur and people are injured or property is damaged, insurance companies should know what the policy does and does not cover and make every effort to do what is legally and ethically required to give their insured the coverage benefits they deserve.   

Unfortunately, these companies sometimes act unscrupulously or negligently to minimize or even completely avoid payouts. Insurance adjusters often do not offer or deliver the full extent of compensation due you, the insured.  Generally, people should be able to trust their insurance company to act in “good faith” and act fairly.  When they don't, Policyholders do have an option.

Alabama recognizes the legal claim of insurance bad faith and breach of contract.  A policyholder can bring a simple breach of contract claim, or, if the evidence warrants it, a bad faith claims when an insurer wrongfully denies a claim or fails to live up to its obligation to fairly compensate the insured.   

Bad faith cases can come in many forms, the below are examples of some:  

· when an insurer recklessly or intentionally fails to investigate a claim, 

· when an insurer recklessly or intentionally fails to evaluate or “adjust” a claim,

·  when the insurer develops a debatable or suspicious reason to deny a claim, 

· or when an insurer relies on ambiguous language in the policy it created as a basis for denial.

Under Alabama law, both compensatory damages and punitive damages may be recovered in a bad faith action, if the evidence warrants. 

If you have been denied an insurance claim and or subjected to loss for what you believe is less than honest clear-cut reason, or full value of what the claim is worth, contact us for a free, no obligation consultation.