Insurance "bad faith" claims may be on the rise in Georgia
Georgia homeowners affected by recent storms have seen a rise in the number of legitimate insurance claims which have been denied. However, some homeowners have fought back by filing formal complaints with the state and taking legal action against the unscrupulous insurance companies. In the past two years alone, formal complaints filed against insurance companies by homeowners have quadrupled.
The Atlanta Journal Constitution has the story.
The rise in denial of claims has been largely attributed to the number and severity of hail storms which have affected Georgia over the past couple of years. For instance, the first four months of 2009 saw at least 15 major storms. As insurance companies had to pay out more and more on storm claims, they began tightening their belts by adopting stricter standards. This left numerous homeowners with legitimate claims to fend for themselves. In some cases, homeowners were denied while their neighbors were approved for the same type of storm damage.
Yet, homeowners are not without recourse. Homeowners may file a formal complaint with the Georgia Department of Insurance which can often persuade an insurance company to pay a claim it originally denied. Prior to filing a complaint, a homeowner may also ask for a second adjuster or hire a private inspector.
There is also a powerful legal option which customers may utilize to punish the insurance company and attain significant monetary damages. If an insurance company refuses to pay a legitimate claim, the insured may have a legal action for bad faith. A bad faith action simply means the insurance company had no reason to deny a claim.
Our business fraud attorneys have won several cases in which our clients were victimized by insurance companies who simply refused to pay what they owed. In such cases, an insurance company may be liable for damages including significant punitive damages and attorney fees. However, it is important for every insurance customer who has been denied or been given the run-around to contact an attorney as soon as possible, since the statute of limitations can often sneak up on unwary victims of insurance bad faith.
Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon, Madison and Savannah. Our lawyers are dedicated to pursuing justice for crime victims, people who have been defrauded by deceptive business practices, or injured through the fault of others. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.
