By: Anikha Sharma

If you live in Phoenix or anywhere in Arizona, you may already know how much the weather, economy, and lifestyle shape daily life—from homeownership and business operations to auto insurance. Arizona’s extreme temperatures and sudden storms can lead to frequent insurance claims, property damage, car accidents, roof collapses, water damage, and more.

However, the increase in claims can also lead to opportunities for some insurance companies to minimize payments. Since paying out claims involves a cost, some insurers may attempt to reduce what they pay, especially if they assume the claimant is unfamiliar with the system. This is why concerns around insurance bad faith are significant in Phoenix. If you’re facing such challenges, consulting a Phoenix bad faith insurance attorney could provide helpful insights.

Signs Your Insurer Might Be Acting in Bad Faith

Here are some signs that could suggest your insurance company is not handling your claim appropriately:

Unreasonable Delays

It’s normal for an insurance company to take some time to review a claim. However, prolonged delays can sometimes be a warning sign. Arizona law specifies the amount of time insurers have to respond to claims. If an insurer consistently fails to meet these deadlines without valid reasons, it may indicate that the company is acting in bad faith.

Not Investigating Properly

For example, if you file a claim for car damage and the insurer sends someone to assess it but they only give the car a cursory inspection, disregard the shop report, and deny the claim based on an insufficient investigation, this may signal bad faith. A thorough investigation should involve a careful review of the situation and all supporting documentation.

Lowball Offers

A lowball offer occurs when the insurance company offers a settlement amount that is much lower than necessary to fully cover the damages, with the hope that you will accept it to avoid further complications. For example, if your roof repair is quoted at $3,000, but the insurer offers only $1,200, this could indicate an attempt to settle for far less than what your policy actually covers.

Deceptive Language

Insurance representatives are expected to provide clear and accurate explanations of your policy coverage and the claims process. Misquoting your policy, incorrectly claiming certain coverages don’t apply, or using scare tactics to dissuade you from filing a claim are examples of potentially unlawful deceptive practices.

How to Protect Yourself

Under Arizona law (specifically §20-461 of the 2010 Arizona Code), insurance companies are required to handle claims fairly and honestly. If your insurer is misrepresenting facts, delaying your claim, offering settlements that fall short of expectations, or giving vague reasons for claim denials, it’s important to explore your options.

While most insurance claims don’t lead to lawsuits, which is typically a good outcome, if you begin noticing issues like excessive delays, denials, unclear explanations, or low offers, it’s crucial to remain informed and take the appropriate steps.

Here are some steps that may help protect your rights:

• Document everything: Keep records of all communications, including emails, texts, and letters.
• Track your interactions: Make note of the dates of any calls or meetings with your insurance company.
• Save supporting documents: Retain receipts, quotes, and any bills related to repairs or medical treatments.

These records may seem inconsequential at first, but can become crucial if you need to prove unfair handling of your claim.

By being vigilant and maintaining good documentation, you can more effectively manage potential bad faith insurance practices and increase the likelihood of securing a fair resolution.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. While efforts have been made to ensure the accuracy of the content, it is not intended to substitute professional advice or guidance. For advice regarding specific insurance claims or bad faith practices, we recommend consulting a qualified attorney or insurance expert.