Not All Claim Denials are in "Bad Faith"

If your insurance company denies your claim, it does not automatically mean that they are acting in bad faith. There are many valid reasons to deny a claim, such as insufficient information, incorrect information or the fact that your coverage might not cover that sort of claim (for example, not all homeowners policies cover flood damage). If your claim is denied, contact your insurance carrier and ask them to explain to you the reasons why. You can also read over your policy carefully to make sure you understand what your duties as a policyholder are, and what the responsibilities of the insurance company are. Then, if you believe that the denial was in bad faith, you will need to take further action against the company.