Your insurance policy is designed to protect you against unforeseen events, such as car accidents and home fires. The insurance company is legally obligated to provide you with assistance during these types of situations. If your insurance company has breached your contract, you have the right to file a lawsuit against them.
How Can Insurance Companies Breach Contracts?
There are several different ways insurance companies may breach a contract, including:
- Delay in Handling Claims: States require insurance companies to respond to claims within a specific timeframe. For example, in Illinois, insurance companies have to investigate and provide reason for the approval or denial of a claim within 60 days. If your insurance company is taking too long to handle your claim, they have breached the contract.
- Unfairly Denying Claims: State laws forbid insurance companies from not paying a claim without a good reason. They must provide a reasonable explanation about why they denied a person’s claim.
- Purposefully Undervaluing Claims: Insurance companies are also legally obligated to pay the claimant the amount specified in their policy. If they deliberately try to pay the claimant less than what they are owed, they have breached the contract.
- Incorrectly Denying Coverage for Certain Conditions: There are some states that forbid insurance companies from denying coverage for some health conditions that are required to be covered by law.
- Failing to Provide a Defense: If a third party makes a claim against you for an accident, your insurance policy likely has a provision that says it has an obligation to defend you in this situation. If your insurance company doesn’t provide you with a lawyer to handle the claim, they are breaching their duty.
- Failing to Pay a Third Party: If a legitimate third party claim was made against your insurance policy, your insurer has to pay that claim. For example, if you caused a car accident and another driver got injured, your insurance policy would have to pay for their damages. If your insurer refuses to pay the third party, you may be sued personally. This is considered a breach of contract.
What Should I Do If My Insurance Company Breached a Contract?
If your insurance company has breached your contract, you may feel frustrated and upset. You’ve always been on time with your payments and they aren’t holding up their end of the contract. However, you don’t have to let it go without a fight. You have the right to file a lawsuit against your insurance company. It’s in your best interest to hire an experienced insurance lawyer to defend you. You’ve already been through so much and you don’t need the extra headache of handling your own lawsuit. Your lawyer can create a strong defense and protect your legal rights. Contact a car accident lawyer Maricopa County, AZ trusts from the Saavedra Law Firm, PLC.