Some insurance companies act in bad faith in order to maximize their profits. They cash in by approving applications for coverage and receiving the payments on premiums, then they fight tooth and nail to avoid paying out the money that they promised the policyholder in the first place. Sometimes they even cancel a policy all together in order to avoid paying out a claim that they have received from a home or business owner, or from a church. In some cases, this may be justified. Sometimes insurance fraud is committed by the consumer, which warrants the insurance company’s actions. On other occasions, though, it is nothing more than a transparent attempt to avoid paying out an expense that they owe you.
If your policy was cancelled right after you put in a claim on damages, you should look into whether or not you have the legal grounds for a bad faith insurance claim. Talk to one of our lawyers for a consultation, and they will take a look at the documentation and evidence in your case. We have worked with hundreds of people to get them the compensation that they deserve. We have a strong track record and we are ready to go to work on your behalf.
The practice of post-claim underwriting, or rescission of policies, is one way that insurance companies avoid payouts. They will tell the customer that they have reviewed the initial application and determined that there were problems and the policy is being cancelled. Of course, they didn’t notice any problems (or make you aware of them) before they started accepting your premiums. As a result of their action, you are told that you will not be getting any coverage and you will have to take the full financial brunt of your loss. That isn’t right, and if the insurance company is out of line legally, one of our bad faith insurance claim lawyers can help you fight to get your justified payments.
It is important that you get legal assistance as early as possible though, as it will boost your chances of reaching a successful outcome.