Hurricane Helene is one of the most catastrophic weather events to ever impact Georgia and the southeast as a whole. Although the citizens of Georgia are resilient, the path to recovery requires insurance companies to step up to the plate and promptly resolve insurance claims so that Georgians can resume life. Unfortunately, many insurance companies refuse to do the right thing opting instead to delay, deny, and underpay valid claims. Even worse, sometimes it seems the insurance claim process is meant to frustrate and wear down policyholders simply looking for a fair shake.
Georgian Hurricane Damage Attorney Striving to Get You Results
Growing up in rural Southeast Georgia, Jeremiah Johns learned many important lessons that have guided him through his career as a policyholder and insurance coverage attorney. Jeremiah and the team at Johns Law Group have handled hundreds of hurricane damage claims and lawsuits. We have assisted hundreds of policyholders following major hurricanes including Ian, Ida, Michael, Laura, Harvey, and Irma. Our goal and passion is to help home and business owners to recover the maximum compensation available under the law so you can get back on your feet without taking a major financial hit.
When you become our client we strive to provide prompt, knowledgeable, and assertive representation aimed at getting results and protecting our clients each step of the way.
We professionally evaluate the damage to your home or business so that the most thorough claim possible can be presented to the insurance company. We work to leverage the legal timelines an insurer has to pay a claim so you can maximize your claim recover including payment in some cases of penalties and attorney’s fees.
We are well-versed in all of the different coverages that may come into play for both residential and commercial claims including dwelling coverage, personal property damage, loss of use, business income claim, and ordinance or law.
Policyholder Rights in Georgia
When hurricanes strike, insurance companies often put their policyholders on the back burner. Long delays, a revolving door of adjusters, and lowball estimates are tactics often employed by insurance companies to cause frustration and to force the policyholder to accept less. However, Georgia law provides key protections to policyholders dealing with their insurance companies, especially when making claims. These rights aim to protect consumers from unfair practices and to ensure that insurers handle claims promptly and fairly. The most important rights include:
- Right to Fair Treatment: Policyholders have the right to fair and reasonable treatment from their insurance companies. Insurers must act in good faith and avoid unfair or deceptive practices during the claims process. This includes assessing claims without bias and making decisions that align with the policyholder’s coverage.
- Right to a Prompt Response: Under Georgia law, insurance companies must respond to claims within a reasonable time. For example, Georgia’s Unfair Claims Settlement Practices Act (OCGA §33-6-34) mandates that insurers acknowledge and respond to claim communications within 15 days. Once the insurer has all necessary documents, it must either deny or approve the claim within a reasonable timeframe, typically 30 to 60 days.
- Right to Know Why a Claim is Denied: If an insurance claim is denied, the policyholder has the right to a written explanation of why the claim was rejected. This helps policyholders understand whether the denial was justified based on the terms of the policy or if there was a misunderstanding that can be corrected.
- Right to a Fair Investigation: Insurance companies must conduct a thorough and fair investigation of a claim. The insurer cannot delay the process unnecessarily or fail to gather essential information that may support the claim. Policyholders also have the right to provide additional information during this investigation.
- Right to Receive Full Benefits: If a policyholder is covered for a specific loss, they have the right to receive the full amount they are entitled to under their policy. Insurers cannot underpay or unreasonably reduce the payout by misinterpreting the policy terms or lowballing damages.
- Right to Dispute a Decision: In the event that a policyholder disagrees with an insurer’s decision on a claim, they have the right to dispute the decision. Many insurance policies have an internal appeals process. Beyond that, policyholders can file a complaint with the Georgia Department of Insurance or pursue legal action.
Bad Faith Insurance Claims in Georgia
In some cases, an insurance company’s failure to handle a claim appropriately can rise to the level of bad faith. Bad faith insurance practices occur when an insurer acts unreasonably or dishonestly in handling a claim, often with the intent to avoid paying a valid claim. Under Georgia law (OCGA §33-4-6), policyholders can file a bad faith insurance claim if they believe their insurer has not met its legal obligations.
Circumstances That May Give Rise to a Bad Faith Claim
A bad faith claim in Georgia can be filed if the insurance company fails to meet its contractual obligations in a dishonest or unreasonable way. Some common situations where a bad faith claim may arise include:
- Unreasonable Denial of a Claim: When an insurance company denies a valid claim without a reasonable basis or fails to provide a legitimate explanation, it may be acting in bad faith. This can include denying a claim for reasons not supported by the policy or denying coverage outright without properly investigating the claim.
- Undue Delay in Payment: Insurers are required to pay claims within a reasonable period once the claim is verified. If there is an unnecessary delay in the payment of a claim, particularly when liability is clear, the insurer could be found to be acting in bad faith.
- Failure to Investigate a Claim Properly: An insurer has a duty to thoroughly investigate a claim before making a decision. If an insurance company fails to gather relevant facts, disregards key evidence, or refuses to investigate, it may be guilty of bad faith.
- Lowball Settlement Offers: Offering a settlement that is substantially lower than the actual value of the claim can be considered a form of bad faith. This tactic is sometimes used to pressure policyholders into accepting an unfairly low payout, especially when they are in a vulnerable position.
- Misrepresentation of Policy Provisions: If an insurance company misinterprets or misrepresents the policy language to deny or underpay a claim, it may be acting in bad faith. This includes using ambiguous language in a way that favors the insurer while disregarding the policyholder’s reasonable expectations.
Legal Remedies for Bad Faith Claims in Georgia
If a policyholder believes that their insurer has acted in bad faith, they can file a lawsuit to recover additional damages. In Georgia, a successful bad faith claim can result in:
- Damages Equal to the Value of the Original Claim: The insurer may be required to pay the policyholder the full amount of the original claim if the court finds the denial was unjustified.
- Penalty of Up to 50% of the Claim or $5,000 (Whichever is Greater): Georgia law allows for punitive damages in cases of bad faith, designed to punish the insurer for its misconduct.
- Attorney’s Fees: The insurer may also be ordered to pay the policyholder’s attorney’s fees if bad faith is proven.
How to Prove Bad Faith
To succeed in a bad faith claim, the policyholder must prove that the insurer’s actions were not only incorrect but also unreasonable and without good cause. This requires showing:
- The policyholder filed a valid claim.
- The insurance company refused to pay the claim or delayed payment without a reasonable basis.
- The insurer’s actions constituted bad faith, such as deliberately mishandling or avoiding the claim.
Conclusion
For most people, their home or business is their biggest investment. The team at Johns Law Group understands the importance of needing an attorney who will aggressively push your claim forward. Please contact us today at (866) 970-0977 to schedule a free no-obligation consultation to discuss your Hurricane Helene insurance claim.