You’ve suffered a catastrophic loss: the loss of a vehicle, a business, or your home. The unthinkable has happened, but thankfully, you’ve prepared. You’ve spent years paying insurance premiums for just this moment. Now, all you need to do is file proof of loss, and you’ll get what you need to rebuild your life. Or so you hope.
Over the last few years, numerous reports have come out regarding how insurance companies really act when disaster strikes: switching adjusters every few weeks, delaying investigations, or denying claims outright.
This is unethical, illegal, and simply unacceptable.
Fortunately, you have the right to demand fair treatment from your insurance provider. When insurance companies act in bad faith and deny, delay, or underpay valid claims, they can be held accountable. In fact, in accordance with Louisiana Revised Statutes § 22:1973, an insurance company that has acted in bad faith may be held liable for the full value of the original claim, plus damages and attorney fees.
When it comes to catastrophic losses, insurance companies still have an obligation to act in good faith and in a timely manner when investigating and paying claims. If an insurer fails to pay a claim within 30 days of receiving proof of loss or upon reaching a written agreement with the claimant—when this failure is “arbitrary, capricious, or without probable cause,” the insurer may face a penalty of 50 percent of the total damages, or $1,000, whichever is greater (Louisiana Revised Statutes §22:1892). This penalty would be paid in addition to the full value of the claim.
Interested in finding out whether you have a case? Call a Louisiana insurance claims attorney as soon as possible at (225) 209-9943.