When you pay your insurance premiums, you expect your insurance company to be there for you when disaster strikes. But what happens when they delay, underpay, or deny a valid claim without a reasonable explanation? This is called bad faith insurance, and it is illegal in Alabama. Bad faith can happen after a car accident, a storm damages your home, or any other event where you file a claim under your policy.
If you believe your insurer has acted unfairly, you may be entitled to compensation for more than just the original claim amount. At Belt, Bruner & Barnett Personal Injury Lawyers, our Birmingham bad faith Insurance lawyers have 93 years of combined experience and have recovered hundreds of millions for clients in Birmingham and throughout Alabama. Contact us today at (205) 973-6417 to discuss your case and learn your legal options.
How Belt, Bruner & Barnett Personal Injury Lawyers Can Help After a Bad Faith Insurance Claim in Birmingham, AL
Insurance companies have teams of adjusters and attorneys working to protect their profits. If your valid claim has been delayed or denied, you need a legal team with the skill and resources to stand up to them.
Our Birmingham personal injury lawyers can:
- Review your insurance policy to understand the full scope of your coverage
- Investigate the circumstances of your claim denial or underpayment
- Collect evidence showing your insurer acted unreasonably
- Communicate with the insurance company on your behalf
- Work with expert witnesses to support your case
- Negotiate for a fair settlement or take your case to court if necessary
- Seek compensation for both the original claim and the harm caused by the bad faith conduct
If you are in Birmingham, AL, and believe your insurance company is not acting in good faith, call Belt, Bruner & Barnett Personal Injury Lawyers today for a free consultation. We can explain your rights and help you decide on the next step.
How Common Are Birmingham Bad Faith Insurance Claims?
While insurance companies have a legal duty to act in good faith, disputes over claim handling are not rare. In Alabama, bad faith claims often arise after major events such as severe weather, large-scale property damage, or serious auto accidents. When thousands of claims flood in at once, insurers sometimes make quick, unfair decisions to limit payouts.
In Birmingham, homeowners may face bad faith issues after tornadoes, hailstorms, or flooding, while drivers can experience claim delays or lowball offers after collisions. While exact numbers are hard to track because many disputes are settled quietly, consumer complaints to the Alabama Department of Insurance show that coverage disputes and claim delays remain a persistent problem.
What Causes Most Birmingham Bad Faith Insurance Claims?
Bad faith insurance claims usually begin with an underlying covered loss.
Common scenarios include:
- A car accident where the insurer refuses to pay medical expenses or vehicle repairs despite clear coverage
- Storm damage to a home or business where the insurer delays payment for months without a valid reason
- Denial of a legitimate claim for fire, theft, or water damage
- Health insurance refusing necessary treatment despite policy terms covering it
In Birmingham, certain risks make bad faith more likely. Severe weather events can cause widespread property damage, leading to insurers rushing through claims. In auto accidents, disputes can arise when multiple parties are involved. Some cases even involve a mix of personal injury and property damage claims, increasing the complexity and the risk of unfair denials.
Common Tactics Used By Insurance Companies in Bad Faith Claims
Insurance companies may use several strategies to avoid paying claims, including:
- Failing to investigate the claim in a timely manner
- Ignoring key evidence that supports the claim
- Misrepresenting policy terms or exclusions
- Offering unreasonably low settlements compared to the actual loss
- Delaying payment without a valid reason
- Requiring excessive, repetitive documentation to stall the process
- Denying the claim without a clear explanation
While some disputes stem from honest mistakes, repeated or deliberate use of these tactics can be evidence of bad faith. In Alabama, proving bad faith requires showing that the insurer had no lawful basis for denying or delaying your claim and knew or should have known that.
What Kind of Damages Are Available to Bad Faith Insurance Victims?
Victims of bad faith may recover damages beyond the amount originally owed under their policy.
These may include:
- Economic damages may include the amount of the original claim, any financial losses caused by the delay (such as additional repair costs or medical expenses), and lost income.
- Non-economic damages may be available for emotional distress, anxiety, or reputational harm caused by the insurer’s conduct.
- Punitive damages can be awarded to punish the insurance company if it had no lawful basis and either knew that or acted with reckless disregard for the truth. However, these damages are rare and require strong proof of intentional or reckless wrongdoing.
How Much Does It Cost to Hire a Bad Faith Insurance Lawyer?
At Belt, Bruner & Barnett Personal Injury Lawyers, we work on a contingency fee basis. This means you pay nothing upfront for our legal services. Our fee is a percentage of the compensation we recover for you. If we don’t win your case, you don’t owe us an attorney’s fee. This arrangement allows you to challenge an insurer’s bad faith actions without worrying about legal bills during a stressful time.
How Long Do I Have to File a Lawsuit After a Bad Faith Insurance Claim in Alabama?
The statute of limitations sets the legal deadline for filing a personal injury lawsuit. In Alabama, most bad faith insurance claims must be filed within two years from the date the bad faith occurred. This is a separate timeline from the one for your underlying claim.
There are exceptions that may shorten or extend the deadline, but waiting too long can mean losing your right to recover any compensation. Because bad faith cases often require reviewing detailed claim files, policy language, and correspondence with the insurer, it is best to contact a lawyer as soon as you suspect unfair treatment. Early action can also help preserve evidence and strengthen your claim.
Contact our Birmingham Bad Faith Insurance Lawyers for a Free Consultation
If your insurance company has wrongfully denied, delayed, or underpaid your claim, you do not have to face them alone. At Belt, Bruner & Barnett Personal Injury Lawyers, we have 93 years of combined experience and have recovered hundreds of millions for clients. Call today to speak with a Birmingham bad faith insurance attorney and learn how we can help you hold your insurer accountable.