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What is a bad faith insurance claim?

Your insurance policy is a contract between you, as the policy holder, and the insurance company. When two people enter into a contract, they are agreeing to follow the terms of the contract and act in good faith. A bad faith insurance claim occurs when an insurance company refuses to honor a legitimate claim, thereby breaching the contract.

In cases of bad faith insurance claims, you have a right to file a lawsuit to collect the amount of money that should have been paid to you on the claim. In Texas, this is known as “First Party Bad Faith Litigation.” You can bring this type of litigation if the insurance company refused to pay out on a claim covered by the policy, failed to pay out an adequate amount on the claim or unreasonably delayed making payments.

If you believe your insurance company has acted in bad faith with regard to your claim, contact us today. Fears | Nachawati is a Texas law firm that works on behalf of accident victims to ensure that they get fair compensation for their injuries. For free legal advice on insurance claims or bringing a Texas personal injury claim, email us at info@fnlawfirm.com or call our toll-free number at 1.866.705.7584.

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Personal Injury

What is a bad faith insurance claim?