Have a Question About Your Prospective Lawsuit? Read the Answers Here
In this series of FAQs, Dallas/Fort Worth lawyer Jim Zadeh explains what you need to know about your employment law, denial of insurance, personal injury, commercial litigation, or workplace injury lawsuit.
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What is a Breach of Insurance Contract?
What Is Breach Of Insurance Contract?
An insurance contract provides protection against damages that may occur. It is financial support by the company acting as an insurer. The insurance company, once committed, is bound by law to provide the insured with help, assistance and support at the time of need. If the insured had an accident, the insurance company must provide all the services and coverage outlined in the contract signed by both parties. After the insured party starts making payments as per the policy guidelines both parties are bound by law to honor the contract. If the insurance company or the insured does not fulfill all the terms and conditions of the contract, a breach of contract takes place.
How a Breach of Insurance Contract takes place?
An insurer or insured can breach the insurance contract in many ways. For example, if the insurance company denies the rights of the insured it will be consider a breach of contract. If the insurance company only pays for part of an insurance claim after a storm, hail, tornado or other weather event, then the insurance company has breached the contract.
Following are some typical ways in which breach of contract takes place:
- If the insurance company unreasonably denies the claim.
- If the insurance company fails to provide assistance.
- If the insurance company delays in paying an insurance claim.
- If the insurance company misinterprets the contract.
- If the insurance company denies the benefits mentioned in the contract.
- If the Insurance company denies the claim without proper investigation.
What is Insurance Bad Faith?
A breach of insurance contract can also make an insurance company liable for bad faith. The insurance company owes the insured a duty of good faith and fair dealing. Often, an insurance will act in bad faith in failing to pay the claim.
We, at the Law Office of Jim Zadeh, P.C., have helped people of Texas with issues related to all types of insurance. For any related queries call us at 817-335-5100 or toll free 888-713-5418. You will be provided with a free and confidential consultation.
Will Insurance Cover Ruined Inventory?
The answer to this question depends, of course, on the details of your insurance policy. If the policy explicitly states that your insurer will pay only for damage to the physical premises, but not to your merchandise, then you're out of luck (and, next time, you'll know to secure your inventory in a dry place in advance of an approaching storm).
Usually, though, matters aren't as cut-and-dried as this. In the wake of a major weather event, your insurance company may be juggling literally thousands of claims from home and business owners. It's in the company's interest to pay out as little money as possible, since every dollar it uses to reimburse policy holders is a dollar subtracted from its bottom line. That's why your insurance company representative is called a “claims adjuster”—he inspects the premises, and the circumstances of your damage, and “adjusts” the payout down from the maximum amount allowed by your policy.
If you feel that you are unfairly being lowballed by your insurance company—which is willing to pay you $15,000 to repair your walls, but not $25,000 for your now-useless stock of toys, electronics, or women's clothing—you need to retain the services of an experienced Texas insurance attorney who can go over your insurance policy with a fine-toothed comb and hold the insurance company responsible for your losses. Jim Zadeh has almost three decades of experience representing policyholders in the Dallas–Fort Worth area, and will go toe-to-toe with your insurer to maximize your payout. Intrigued? Contact Jim today at 888-713-5418 to find out what he can do for you!