Insurance bad faith or insurance fraud can be defined as the mistreatment of consumers by their insurance companies. This usually occurs when insurance companies refuse to pay settlements according to the terms of their contract.
Insurance companies routinely deny or lowball homeowner's insurance claims for all kinds of reasons, and if you have ever been on the receiving end of such an action, you know just how devastating such news can be. If your homeowner's insurance claim is denied following a burglary, hurricane, flood or another type of weather-related event, the costs associated with the damage can be staggering. While you have a right to appeal the decision, it is essential that you document the damage and closely familiarize yourself with both the policy itself and the specific details of your case.