Insurance companies are in the spotlight more than ever. After Superstorm Sandy many homeowners have been dealing with their insurers trying to thread through the detailed paperwork required to receive the benefits they believe they deserve. But all too often consumers may find they are getting the runaround, being stonewalled or having claims denied without just cause.

The law is clear that your insurer must act in good faith in its dealings with you. Your insurer must honor its obligation to you. Should your insurer fail to live up to its contractual obligation and not act in the proper manner, such as by denying a personal injury or other claim you file, you may be able to file a lawsuit against your insurer for damages for having acted in bad faith.

Additional damages you may win

Damages that you receive on a bad faith claim can include far more than the amount of original compensation that you sought under your policy claim. You can also receive an award of other damages including consequential damages and, in some instances, extra-contractual damages.  The term consequential damages generally refers to items such as out-of-pocket expenses you incurred because of the failure to act by your insurer. For example, costs you incur to repair your vehicle or home may be consequential damages.

The term extra-contractual damages refers to awards made for emotional or physical pain and suffering that arose because of the bad faith of your insurer. In rare cases, if an insurance company is found to have acted egregiously, punitive damages may also be awarded. You only have a limited amount of time to file your claim, so contact a knowledgeable attorney right away.

Posted in Personal Injury

Topics:  Bad Faith, Consequential Damages Clause, Covenant of Good Faith and Fair Dealing, Damages, Homeowner's Insurance, Hurricane Sandy, Pain and Suffering, Punitive Damages

Published In: Personal Injury Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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