Insurance Bad Faith

If you are like most people, you may have never heard the words “Insurance Bad Faith” or have any idea what it means. That is because insurance companies don’t spend millions of dollars in advertising explaining the duties of good faith and fair dealing insurance companies owe to insureds. Instead, they spend millions in advertising attempting to create a false sense of trust in the insurance company, so that the insured will accept the insurance company’s position without questioning it or calling the insurance company to task.

Regardless, Arizona law recognizes an implied covenant of good faith and fair dealing in every insurance policy between an insurance company and an insured. What that means is that, while not expressly written into the policy language, every insurance company is required to treat every insured fairly, reasonably and in good faith. A failure by an insurance company to live up to that obligation is a breach of the duty of good faith and entitles the insured to collect monetary damages on top of what the insurance company already owes under the insurance policy.

So, what is insurance bad faith? Insurance bad faith can be found in the following examples of common insurance company conduct:

  • Failing to timely communicate with the insured – At Douglas F. Dieker, P.C., we’ve represented many clients who have attempted to communicate with their insurance company after making a claim and were met with nothing more than silence.
  • Failing to conduct an adequate or reasonable investigation into the loss sustained – At Douglas F. Dieker, P.C., many of our clients have complaints that their insurance company refuses to look at or acknowledge damages sustained, leaving the insured feeling as though they are not being made whole. Or, when the insurance company does look at the damages, it looks for reasons to deny the claim by asserting the damages were caused by something other than a covered peril, with no reasonable basis.
  • Failing to reasonably assess the amount of damages sustained – A common complaint of clients of Douglas F. Dieker, P.C. is that the insurance company has low-balled their claim and refuses to pay a fair amount to either repair or replace their damaged property.
  • Forcing the insured through needless, adversarial hoops – It is not uncommon for clients of Douglas F. Dieker, P.C. to feel like their insurance company is treating them like a criminal for simply making a claim for loss. We have represented many insureds who have been asked to provide repeated recorded statements or examinations under oath, or are asked to provide supporting documentation that is either non-existent or has been destroyed or are forced to demand appraisal or even file a lawsuit to obtain their rights under the policy.
  • Delay in payment – Even if the insurance company does assess the amount of the loss, many of the clients of Douglas F. Dieker, P.C. have suffered unreasonable delays in receiving payment from their insurance company
  • Denying a claim without a reasonable basis – Another common complaint of our clients is that their claim for loss which should be covered by the insurance company, has been denied without a reasonable basis.

These are just a few examples of what constitutes insurance bad faith in the State of Arizona. If you feel you have been treated unreasonably and unfairly, contact Douglas F. Dieker, P.C. today so that we can help you obtain your full rights under your insurance policy. Douglas Dieker has nearly twenty years experience taking on insurance companies on claims just like yours, and assisting clients who are going through exactly what you are going through today. So call Doug now and talk to him about your insurance claim. You will receive a personal consultation from Doug, at absolutely no cost to you. At Douglas F. Dieker, P.C., we provide a free initial consultation. And should you need to hire Doug for help, he will assist you on a contingency basis, so that if he doesn’t collect anything for you, you will not owe him a fee.