Albuquerque Home Insurance Bad Faith Lawyers

Homeowners insurance provides essential financial protection when disaster strikes, covering the cost of repairs, replacement of lost belongings, and ensuring your home remains livable. Unfortunately, some insurance companies engage in bad faith practices, unjustly denying, delaying, or underpaying valid claims. When this happens, homeowners are left fighting not only to repair their homes but also to hold their insurance companies accountable for failing to uphold their obligations.

At Collins & Collins, P.C., we are in the business of holding powerful insurance companies accountable when they fail to protect policyholders. Bad faith homeowners insurance practices can have devastating financial and emotional consequences for individuals and families, and we are here to ensure that insurers meet their legal obligations.

What Is Homeowners Insurance Bad Faith?

Homeowners insurance bad faith occurs when an insurance company acts dishonestly or unreasonably in handling a claim. Insurance companies are legally required to handle claims fairly and in good faith, but too often, they prioritize profits over policyholders by using unfair tactics to avoid paying claims. When this happens, Collins & Collins, P.C. steps in to hold them accountable for their actions.

Some common bad faith practices include:

• Unjustified Denial of Claims: Insurance companies may deny valid claims without a reasonable basis, often relying on misinterpretations of policy terms or citing inapplicable exclusions.
• Unreasonable Delays: Some insurers intentionally delay the claims process, forcing homeowners to wait months—or even years—before receiving payment for repairs.
• Lowball Settlement Offers: Offering less than the actual cost of repairs or replacement is a common tactic used by insurers to minimize their payouts, leaving homeowners with the financial burden of covering the difference.
• Failure to Investigate Claims: Insurance companies are required to thoroughly investigate claims. When they fail to do so, they may wrongfully deny claims or offer inadequate settlements based on incomplete or incorrect information.

At Collins & Collins, P.C., we take these bad faith practices seriously and work to ensure that homeowners are compensated fairly. When insurance companies act in bad faith, they are breaching their duty to policyholders, and we pursue justice on behalf of those affected.

How Bad Faith Practices Harm Homeowners

When homeowners insurance companies engage in bad faith, the consequences can be severe. Your home is one of your most valuable assets, and unexpected damage can leave you in a vulnerable position. Collins & Collins, P.C. works to hold these insurers accountable for the financial and emotional harm they cause, ensuring that you are not left to bear the burden of an insurance company’s misconduct.

• Financial Hardship: Unjust claim denials or delayed payments can force homeowners to dip into savings, take out loans, or accumulate credit card debt to cover urgent repairs or temporary living expenses.
• Unsafe Living Conditions: When insurers delay or deny payment for necessary repairs, homeowners may be forced to live in unsafe or unhealthy environments, such as homes with structural damage or water intrusion.
• Emotional Stress: Dealing with the aftermath of a disaster is already stressful, but fighting with an insurance company can make it even more overwhelming. We understand the emotional toll this can take on homeowners and their families.

By holding insurers accountable, Collins & Collins, P.C. works to relieve these burdens and make sure that homeowners receive the full compensation they deserve under their policies.

Common Bad Faith Homeowners Insurance Practices

Insurance companies use a variety of tactics to avoid paying out on homeowners insurance claims. Some of the most common bad faith practices include:

• Denying Claims Without a Valid Reason: Insurers may deny claims for storm damage, fire damage, water intrusion, or theft by wrongfully interpreting policy exclusions or claiming insufficient proof—often with little justification.
• Lowball Settlements: Insurers frequently offer settlements far below what’s necessary to fully repair or replace damaged property, knowing that some homeowners may accept these offers out of desperation.
• Delaying Payment: Insurers may delay payments by claiming they need additional documentation, asking for repeated inspections, or requiring unnecessary investigations, all designed to frustrate policyholders into settling for less than what they deserve.
• Disputing Coverage: Insurers often argue that certain damages, such as mold, rot, or roof damage, are not covered by the policy, even when they result from covered events like storms or water leaks.

When insurance companies use these tactics, they are acting in bad faith, violating their contractual duty to provide fair and timely compensation. Collins & Collins, P.C. aggressively challenges these practices to hold insurers accountable.

How Collins & Collins, P.C. Holds Insurers Accountable for Bad Faith

At Collins & Collins, P.C., we take a proactive approach to hold insurance companies responsible when they engage in bad faith practices. Homeowners should never have to face the financial burden of a denied or delayed claim due to an insurer’s failure to act in good faith.

Here’s how we hold insurance companies accountable:

1. Comprehensive Claim Review: We thoroughly investigate the details of your claim, review your homeowners insurance policy, and identify where the insurance company has breached its obligations.
2. Demanding Full Compensation: We fight to ensure that homeowners receive the full value of their claim, including repairs, replacements, and any temporary living expenses. If an insurer has acted in bad faith, we also seek additional damages to compensate for the emotional and financial harm caused by the insurer’s actions.
3. Litigating Against Insurers: We are not afraid to take insurance companies to court when necessary. Our experienced trial attorneys build strong cases against bad faith insurers, ensuring they are held accountable for their misconduct.
4. Pursuing Punitive Damages: In cases where an insurer’s bad faith conduct is particularly egregious, we may seek punitive damages to punish the insurer and deter similar behavior in the future.

Legal Remedies for Homeowners Insurance Bad Faith

When your insurance company acts in bad faith, you have legal options to hold them accountable. Homeowners can file a bad faith insurance claim to recover compensation for damages caused by the insurer’s failure to act in good faith. In many cases, policyholders can recover:

• Contract Damages: The full value of the original claim, including the cost of repairs, replacement of personal property, and any temporary living expenses covered by the policy.
• Emotional Distress Damages: Compensation for the emotional and psychological toll caused by the insurer’s bad faith actions.
• Punitive Damages: In cases of extreme misconduct, courts may award punitive damages to punish the insurance company and deter future bad faith practices.

At Collins & Collins, P.C., we fight tirelessly to hold insurers accountable, ensuring they pay every penny owed under the policy and any additional compensation for the harm caused by their bad faith conduct.