When you file an insurance claim on a policy, your insurance company will either pay your claim, deny it or even cancel your policy. Sometimes, insurance companies act in bad faith, canceling your policy without proper cause in an attempt to avoid claim payment.
Cancelation: A Common Insurance Claim Avoidance Tactic
There are some legal reasons why an insurance company can cancel your insurance policy, including:
- Lack of premium payments
- Inability to contact you for information to evaluate coverage risk
- High coverage risk
- Fraudulent documentation
Should an insurance company cancel your policy for any other reason, you may be a victim of bad faith cancelation. For example, they may claim you canceled your policy, but won’t be able to tell you why. Or, in other cases, they may say you made a false statement which enables them to cancel your policy as soon as you make a claim.
Insurance Companies Must Have Proof
It’s important to remember that your insurance company must prove you committed fraud or lied about your claim. And even if they’re able to prove fraudulent documentation, they must give you at least 30 days’ notice before canceling your policy.
What Can You Do If Your Insurance Cancels Your Policy?
If you suspect your insurance company is acting in bad faith, we recommend calling an experienced attorney. To avoid escalating the situation, don’t attempt to handle it on your own.
An attorney will be able to investigate the matter fully, including the reasoning behind the cancelation. The attorney can also work with you to recover any available damages such as punitive damages, attorney fees and any money you’re entitled to under your policy.
Cancelation is only one method used to avoid paying claims. Insurance companies may also delay investigating your claim, fail to conduct a complete investigation, offer less for a claim, refuse to pay a valid claim and more.
Bad Faith Cancelation? Call The Fell Law Firm Today.
Has your insurance company canceled your policy without documentation or notice? You may be a victim of bad faith. To learn more about your legal options or to speak with an experienced attorney, give us a call at 972-450-1418 today.