Insurance Coverage and Bad Faith

Most people purchase insurance hoping that they never have to use it, pay premiums every month without ever looking at their policies, and probably could not understand their insurance policy even if they took two months off of work to read it. Unfortunately, insurance companies know this. They have drafted insurance policies full of legalese and loopholes.

Insurance policies come in all shapes and sizes. There are automobile policies, homeowners' policies, renter's policies, landlord policies, director and officer policies, commercial general liability policies, errors and omissions policies, and the list goes on. The insurance companies have spent years, and in many cases decades, drafting and refining policy language with the apparent goal of avoiding having to pay a claim. If you have received a letter from your insurance company denying your claim, you should not take their word for it. You need to consult a lawyer for independent advice.

In the event you are fortunate enough to have a covered claim, people often find that their claims are denied for bogus or questionable reasons. Or, they are offered a fraction of what their claim is worth (a practice known as "low-balling"). Or, the insurance company misrepresents the coverage available for a loss or distorts the facts of the loss in order to avoid paying a claim. Or, the insurance company makes its policyholders go through unnecessary hurdles simply to obtain what is rightfully theirs under the policy. In many cases, the insurance company also delays the adjustment of a claim for several months.

Arizona law requires that an insurance company conduct a full, fair and prompt investigation. Arizona law also requires that an insurance company pay the undisputed amount of a claim promptly (within 30 days) even if other portions of a claim are in dispute. Arizona law also requires an insurance company to treat its insureds fairly and with equal consideration to their interests. An insurance company acts in bad faith when it "intentionally denies, fails to process or pay a claim without a reasonable basis." An insurer must investigate and evaluate a claim reasonably and in good faith.

We have represented countless individuals and businesses in pursuing insurance coverage and bad faith claims. Some recent examples of bad faith cases we have handled include:

• We have represented several policyholders whose automobile theft claims were denied because their insurance company concluded, usually after a shoddy investigation, that they stole their own vehicles.
• We have represented business owners and homeowners accused of setting fire to their business, residence or vehicle.
• We have represented homeowners whose insurance company waited more than four weeks to inspect their water-damaged home and then denied the claim because the homeowner covered the gaping hole in his ceiling.

Call us today to schedule a consultation if you believe that your insurance claim has been wrongly denied or that you have been mistreated by your insurance company.