Is My Claim Denial a Sign of Bad Faith?

When you file a homeowners’ insurance claim in a desperate attempt to repair or replace your damaged property, you likely expect your insurer to handle it fairly and promptly. After all, situations like this are the reason why you have diligently paid into an insurance policy each month. So when you receive a flat-out denial with seemingly no good explanation given, your concerns over insurance bad faith may be on high alert. Without further ado, please follow along to find out whether your denial means you have been made the victim of insurance bad faith and how one of the proficient New York residential property damage claim attorneys at The Law Office of Craig A. Blumberg, P.C., can help you navigate your legal options, if any are available to you at this time. 

Is my homeowners’ insurance claim denial an indication of bad faith?

Before you go too far ahead of yourself, you must accept that not all homeowners’ insurance claim denials constitute insurance bad faith. Rather, it may simply be because your claim did not meet the bounds of your selected policy, not due to your insurer acting unfairly or improperly. 

Your policy’s language may be greatly confusing. But with the help of your attorney, you may be able to determine whether your policy should have indeed covered your incurred property damage. 

While your attorney looks into this for you, you should keep them informed of any strange behavior you have noticed from your insurer. For example, if they have failed to conduct an adequate inspection of the damage, failed to acknowledge supplementary evidence you submitted, failed to cite specific reasons for their final decision, etc.

What laws protect me from unfair insurance practices in New York?

Per New York Insurance Law Section 2601, homeowners’ insurance policyholders are protected from unfair claim settlement practices, such as being wrongfully denied a claim payout. Therefore, you may typically exercise your right to legal action by suing your negligent insurer for a breach of contract. 

With this, you must prepare for the fact that the New York State court may expect a significant amount of proof of your insurer’s extreme or egregious conduct against you. Unfortunately, the standard here is generally higher than in many other states. But this does not mean you should shy away from fighting for the original claim amount that you believe is rightfully yours.

To conclude, to ensure you put your best foot forward when starting your case, please consult with one of the talented New York residential property damage claim attorneys from The Law Office of Craig A. Blumberg, P.C. We are willing to answer any questions and concerns you may have regarding your situation, no matter how minor you may think they are. So call us today.