insurance adjuster speaking with homeowners

Protecting Your Rights from Bad Faith Property Insurance Companies in Rhode Island

When you purchase homeowners or property insurance, you do so with the expectation that you will be protected in the event that you experience a loss. Unfortunately, though, this isn’t always the case. Since insurance companies are businesses like any other, the less money they lose, the more profit they make. For this reason, many insurance companies treat their own clients as their adversaries after they have filed a claim. But while claims adjusters are required to ensure that there are no lasting fraudulent claims, many claims are treated as if they are fraudulent from the get-go. 

When you are already dealing with a disheartening loss, it can be difficult to know how to proceed with an insurance company that initially denies their claim. As a result of the desperation many insurance clients feel, many insurance companies will take advantage of their clients by offering them a very low offer or by denying their claim altogether. At best this practice is unethical, while at worst it may be illegal. That’s why it’s so important that people understand what they are entitled to when it comes to property loss and damage. If you find that your insurance company is acting in a manner that is illegal and goes against your contract with it, you may have a bad faith insurance claim

A Fiduciary Duty

Insurance companies have a fiduciary duty to act in the best interest of their clients. This means that they have a duty to look at each claim and consider whether it qualifies for a settlement and if so, what a reasonable settlement would look like. Therefore, if an insurance company denies a claim without a legitimate reason, or fails to carry out the duties required of it, it can be sued by its clients for acting in bad faith. Clients who are successful in their claim of bad faith may not only be entitled to their originally deserved settlement, but also to punitive damages and attorney’s fees. 

By working with a qualified Rhode Island insurance attorney, the likelihood of your insurance company acting in bad faith to your claim goes down tremendously. Having legal counsel often ensures that you are treated in a more fair manner than if you file a claim on your own. 

Palumbo Law Helps to Protect Those in Rhode Island from their Insurance Companies Acting in Bad Faith 

When you are dealing with the loss of your property, it can be difficult to act without strong emotion. You may want the money to fix your property immediately, but in an effort to obtain it you may not receive that which you are truly entitled to. 

At Palumbo Law, our experienced Rhode Island Property Insurance lawyers work strategically to help our clients to get what they deserve. We have deep experience working with insurance companies and understand how to deal with them. If you are planning on filing an insurance claim or if you’ve already filed your claim and been denied, we can help. To learn more or to schedule a free consultation, call us today!