Table of Contents
- How Do Insurance Disputes Arise in Fort Collins?
- What Obligations Does the Insurance Company Have to You?
- When Can Bad Faith Claims Arise?
- Should I Use My Uninsured or Underinsured Motorist Coverage (UM / UIM Coverage)?
How Do Insurance Disputes Arise in Fort Collins?
Insurance dispute claims are also known as insurance bad faith claims. Bad faith claims can arise in a variety of instances, depending on the type of insurance policy you have. Below are examples of bad faith claims the attorneys at HSD Law can handle for you:
- Homeowner’s insurance policy disputes
- Automobile insurance policy disputes
- Commercial General Liability insurance policy disputes
- The renter’s insurance policy disputes
What Obligations Does the Insurance Company Have to You?
The insurance company’s duties to you are defined by the insurance policy language, and each insurance policy contains a different policy language. Your insurance company owes you a duty of good faith in adjusting your Fort Collins accident claim. Colorado law provides that your insurance company may have breached this duty if the following occurs:
- Misrepresenting pertinent facts to insurance policy provisions relating to coverage issues
- Failing to acknowledge and act reasonably promptly upon communications concerning claims arising under insurance policies
- Failing to adopt and implement reasonable standards for the prompt investigation of claims arising under insurance policies
- Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds.
- Failing to properly settle claims where liability has become reasonably clear, under one portion of the policy, to influence settlements under other portions of the insurance policy
- Failing to promptly provide a reasonable explanation of the basis in the insurance policy concerning the facts or applicable law for the denial of a claim, or the offer and compromise settlement
When Can Bad Faith Claims Arise?
- Refusal to provide coverage for your claim
- Refusal to defend you in a lawsuit against you for a claim covered by your policy
- Failure to settle a claim against you within the limits of your insurance policy
- Failure to promptly investigate your claim
- Unreasonable delay of payment to you under your policy
- Unreasonable denial of your claim under your policy
What do these scenarios look like in real life? Here are some examples:
- You are injured in an accident, and you submit a claim for recovery under your uninsured/underinsured auto policy. Your medical bills for related treatment are $50,000, and your insurance company only offers to pay $10,000
- You ask your insurance company to provide you with an evaluation for your claim as a basis for why it would only pay $10,000 of your $50,000 in medical bills, and your insurance company refuses to sue.
- Someone sues you for an injury they sustained as a result of a car accident caused by you. The injured party offers to settle her claim for $50,000, and your policy limits are $100,000
- You incur hail damage to your home. You submit the claim to your homeowner’s insurance policy. Your insurance carrier refuses to make payments under the policy, undervalues the claim, or delays payments for months or years
What if your insurance company blames you for its delay or denial of a claim? Here are some tips on how to work with your insurance company to preserve your bad faith claim:
- Cooperate with your insurance company. Almost every insurance policy in Colorado includes a duty for you to cooperate with your insurance company. Your cooperation is not required without limitation. You should seek legal advice to determine the extent of your duty to cooperate.
- Do not delay in reporting a potential claim to your insurance company. If you delay reporting a claim to your insurance company, the company can claim that it was prejudiced by not knowing of the claim near the time that it occurred.
- If the claim arises from your negligence, do not make statements that can be used against you, and do not attempt to resolve the claim on your own.
- If your claim is for property damage to your property, allow the insurance company the ability to inspect the damaged property before repair
Insurance disputes are complex. Bad faith claims are difficult to pursue because the insurance company does not like to admit it is wrong and will spend hundreds of thousands of dollars to prove otherwise. Contact the attorneys to evaluate your bad faith claim. Our attorneys have recovered millions against insurance companies for bad faith.
Should I Use My Uninsured or Underinsured Motorist Coverage (UM / UIM Coverage)?
Clients sometimes do not want to submit a claim on their Uninsured or Underinsured Motorist Coverage because they think it will result in an increase in their own insurance costs. This should not be a concern. The Colorado Division of Insurance forbids insurance companies from penalizing injured people who collect money under an UM / UIM policy. If you have been injured and the at-fault party has no insurance, or very little insurance, then you should submit a claim under your UM / UIM policy. Your insurance company cannot raise your rates or refuse to renew your insurance policy because of that claim.