Bad Faith Insurance: What It Is, How to Spot It, and What to Do About It.

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When you buy insurance for your home, car, or business, you expect protection when life goes wrong. You pay your premiums on time, trusting your insurance company will be there when disaster strikes. But what happens when they don’t keep their promise?

That’s called bad faith insurance, and it’s more common than most people realize.

What Is Bad Faith Insurance?

Insurance companies have a legal duty to act in good faith, meaning they must handle your claim honestly, fairly, and promptly.

When they delay, deny, or underpay a valid claim for no good reason, that’s bad faith.

In plain terms:

Bad faith is when your insurance company puts profits over people.

How Insurance Companies Act in Bad Faith

Here are some of the most common ways people get taken advantage of after filing a claim:

Delaying payment for months or even years.
Denying valid claims without a real explanation.
Offering lowball settlements far below repair costs.
Blaming pre-existing damage or “wear and tear.”
Failing to investigate properly or ignoring key evidence.
Changing policy interpretations after you file a claim.
Using intimidating tactics to get you to accept less.

These strategies are designed to save the company money and cost you peace of mind and financial security.

Real-Life Example: Roof & Storm Damage Claims

Homeowners in Oklahoma and across the U.S. are being shortchanged after hail, wind, and storm damage.

Insurance adjusters might:

Say the roof only needs a few “repairs” instead of full replacement.
Claim the damage is “cosmetic” or due to aging.
Refuse to pay for materials that meet code or match your existing roof.

If your home is leaking or your roof looks like patchwork after an insurance claim, that’s a red flag.

How to Tell If You’re Being Treated in Bad Faith

Ask yourself:

Has my insurance company stopped responding or keeps “reviewing” my claim?
Did they give me an unreasonably low offer?
Have they refused to explain why they denied my claim?
Do their numbers not match the real repair costs?

If you answered yes to any of these, your insurer might be acting in bad faith.

What To Do If You Suspect Bad Faith

• Document everything.
• Keep photos, videos, emails, and notes from every call or visit.
• Request written explanations.
• Ask for all reasons for denial or delay in writing.
• Get a second opinion.
• Hire your own contractor, roofer, or public adjuster for an honest estimate.
• Do not sign anything until you understand the offer.
• Talk to an insurance bad faith attorney.
• A lawyer can step in to demand accountability and get you the full amount you deserve.

How Smolen Law Can Help

At Smolen Law | The Alpha Firm, we fight insurance companies that play dirty.
Our team has handled countless bad faith insurance cases, helping homeowners, drivers, and businesses recover what they were owed, plus damages for the stress and harm caused by unfair treatment.

We hold insurers accountable when they: