A quick resolution to your insurance claim can be a good thing. However, it is only an ideal situation if you receive a favorable decision.
An insurer may settle your claim quickly, but this could also mean they do not give you the compensation you need. Even if they do provide a settlement for your claim, it may not align with the gravity of your situation.
A hasty investigation could be a sign of insurance bad faith. Here’s how you can spot it.
Learn the proper timelines and investigation elements
According to Nevada law, insurers must notify you about the acceptance or denial of your claim within 30 working days. If they need more time to investigate, they likewise have to send you a notification.
Delayed investigations can also be a sign of bad faith, but what if they give you a decision too quickly?
Rushed investigations in time-sensitive cases may not raise red flags. However, a hasty outcome paired with a lack of a proper investigation is a cause for concern. Generally, an insurance investigation includes the following elements:
- Collection of evidence
- Witness interviews
- Objective analysis
- Proper documentation of all steps
Always ask for key information to make sure your case went through due process. If the insurance company cannot provide proper documentation of their investigation, they may be acting in bad faith.
Be wary of investigation shortcuts
An insurer might technically complete all the standard steps, but they may do so with shortcuts that undermine the thoroughness and integrity of the investigation.
For example, they may ignore additional evidence, fail to interview key witnesses or intentionally misinterpret policy language to avoid further investigation.
It can be difficult to spot shortcuts as a claimant, but you can look for warning signs, such as vague or inconsistent explanations for their decisions and inconsistencies between the adjuster’s report and your experience.
Do not accept an unfair decision or settlement
An unusually quick decision might not be a problem if it benefits you, but this is not usually the case. If the insurer is quick to deny your claim without a clear reason, you may be able to hold them accountable for bad faith.
The same applies if they provide a quick settlement but the amount is too low to address the extent of your damages. In any case, seeking legal representation can help you pursue fair coverage under your policy.