Catastrophic events happen and rob families and individuals of their financial security. To avoid that, most homeowners depend on their homeowner’s insurance policies. The insurance policyholder pays premiums with the intention of never needing the policy. But, if a disaster takes place or a claim is mishandled by their insurance company, homeowners and their families can experience a dire financial situation.
A San Diego Homeowners Insurance Bad Faith Lawyer will comprehend the effect that being denied or having insurance disputed can have on a person struggling after one of these events. They can hold the insurance company responsible for their contractual duties.
California’s Definition of Insurance Bad Faith
In San Diego, when insurance companies behave unethically, it is a case of bad-faith insurance. Insurance companies are bound by law to practice in good faith. This means that for every claim that the company is contracted to cover, it is responsible for covering. When it fails to cover the things it has promised, the company is acting in bad faith.
Good Faith Conduct is Expected from Homeowners Insurance Companies
Insurance companies are supposed to manage their claims ethically and honestly. When a homeowner buys a policy, they have the expectation that the insurance company will behave appropriately. Behaving fairly means the following:
When a claim is made, they are obligated to investigate it properly.
When legitimate claims are made, the insurance company is expected to pay the claim promptly.
The claims must be paid according to what the policy promised.
Policyholders may have grounds to file a bad faith insurance claim if the insurance company chooses not to investigate the claim or if they refuse to prove the maximum benefits to which the policyholder is entitled.
What Damages Are Available to Victims of San Diego Homeowner’s Bad Faith Insurance Claims?
There are various remedies that a policyholder being treated in bad faith might obtain. The details of the case will be taken into account when making a decision about compensation. Compensation might be available in the following ways:
Contract damages may be awarded if they were postponed or withheld inappropriately. Claimants being awarded contractual damages may also be eligible to interest on the money that was withheld.
Extracontractual damages are another possible monetary award. This is compensation for losses that happened because the insurance company acted in bad faith. This type of award may cover attorney fees, emotional distress, and court costs.
Punitive damages might apply if the insurance company acted particularly egregiously and the court determines they should be punished. Punitive damages are used to punish the insurance company and to discourage them and other insurance companies from repeating the bad faith actions that led to the lawsuit to begin with.
In order to win a bad faith insurance case, the onus is on the claimant to prove that the insurance company probably behaved in bad faith. For punitive damages to be awarded, the bad faith must be unmistakable and compelling. The amount awarded will be based on the specifics of your case.
You Need a San Diego Homeowner’s Insurance Bad Faith Insurance Attorney
If your insurance company has acted in bad faith, you deserve to have bold, assertive, prepared representation beside you. A San Diego homeowners insurance bad faith attorney will protect your rights and aid you in securing the maximum benefit available in a bad faith homeowner’s insurance claim.
