What Is Insurance Bad Faith and How Does It Affect Colorado Springs Policyholders?

When you pay your insurance premiums on time, you expect your insurance company to uphold its end of the bargain, to protect you when you need it most. Unfortunately, many Colorado Springs residents find themselves fighting with their own insurance providers when legitimate claims are denied, delayed, or undervalued. This kind of behavior isn’t just frustrating; it may be considered insurance bad faith. Understanding what insurance bad faith is and how it impacts you can help you recognize when it’s time to seek help from an experienced attorney.

What Is Insurance Bad Faith?

Insurance bad faith occurs when an insurance company fails to act honestly, fairly, or reasonably toward its policyholders. In Colorado Springs, as in the rest of the state, insurance companies are legally required to handle claims in good faith, meaning they must investigate, evaluate, and pay legitimate claims promptly. When they intentionally delay, deny, or underpay valid claims, they may be held accountable for acting in bad faith.

Examples of bad faith behavior by insurance companies can include:

• Unreasonably delaying payment or investigation of a claim
• Denying a valid claim without a proper explanation
• Failing to conduct a fair or timely investigation
• Offering a settlement far below the actual value of your damages
• Ignoring or misrepresenting the terms of your insurance policy
• Failing to communicate important information about your claim

When an insurance company acts this way, it’s not just an inconvenience; it’s a violation of the duty they owe to their customers. Policyholders in Colorado Springs who experience this kind of treatment have the right to pursue legal action for damages caused by the insurer’s misconduct.

How Insurance Bad Faith Impacts Colorado Springs Residents

Being a victim of insurance bad faith can be emotionally and financially devastating. Most people file insurance claims during already stressful times, such as after a car accident, house fire, medical emergency, or natural disaster. When your insurer refuses to help, it can leave you struggling to pay bills, repair property, or cover medical expenses that should have been reimbursed.

Some of the most common consequences of insurance bad faith in Colorado Springs include:

• Financial Hardship: Denied or delayed payments can leave you unable to repair your home, replace your vehicle, or afford medical treatment.
• Emotional Distress: Dealing with an uncooperative insurer can cause frustration, anxiety, and emotional exhaustion.
• Credit and Debt Problems: When claim payments are withheld, policyholders often have to borrow money or use credit to cover expenses, which can lead to long-term debt.
• Legal and Administrative Delays: Without a lawyer’s help, it can take months or even years to get fair compensation.

For many people, insurance bad faith adds an entirely new layer of stress to an already difficult situation. This is why working with an experienced insurance bad faith attorney in Colorado Springs can make such a difference. A lawyer can step in, hold the insurance company accountable, and help you recover the compensation you deserve.

Common Types of Insurance Bad Faith in Colorado Springs

Insurance bad faith can occur in many types of policies, from car and homeowners’ insurance to health and life insurance. Residents of Colorado Springs frequently encounter problems when filing claims related to severe weather damage, motor vehicle accidents, or personal injury cases.

Some of the most common examples of bad faith claims include:

• Auto Insurance: The insurer refuses to pay for repairs, medical bills, or replacement value after an accident.
• Homeowners’ Insurance: The insurance company undervalues or denies claims for fire, hail, or storm damage.
• Health Insurance: Legitimate medical treatments are denied, delayed, or only partially covered.
• Life Insurance: A claim is delayed or denied without proper investigation after a loved one’s death.

In each of these cases, the insurer’s failure to act in good faith can leave policyholders struggling to recover both financially and emotionally. Colorado law protects consumers from this kind of misconduct, but it often takes legal action to enforce those rights.

What Colorado Law Says About Insurance Bad Faith

Colorado has some of the strongest laws in the country designed to protect policyholders from insurance bad faith. Under Colorado Revised Statute §10-3-1115 and §10-3-1116, insurers are prohibited from unreasonably delaying or denying the payment of a valid claim. If an insurance company is found to have violated this law, they can be required to pay two times the amount of the claim in addition to attorney’s fees and other damages.

These laws give policyholders in Colorado Springs powerful tools to fight back, but taking on a large insurance company without legal help can still be challenging. That’s where an experienced bad faith attorney becomes essential.

How an Attorney Can Help You Fight Back

Insurance companies have vast legal resources and teams of adjusters and lawyers dedicated to minimizing payouts. Trying to take them on alone can be overwhelming and ineffective. A skilled bad faith attorney knows how to investigate claim mishandling, identify violations of Colorado law, and pursue fair compensation on your behalf.

At Pribila and Fields, our attorneys have extensive experience representing Colorado Springs policyholders in bad faith insurance claims. We work to:

• Review your insurance policy and identify any violations
• Gather evidence that proves unreasonable delay or denial
• Negotiate directly with the insurance company to reach a fair settlement
• Take your case to court if necessary to recover full compensation

Our firm is dedicated to protecting consumers from unfair insurance practices and holding companies accountable for the promises they make to their customers.

Contact Pribila and Fields for Help with Insurance Bad Faith Claims

If you believe your insurance company has treated you unfairly, don’t wait to take action. The longer you delay, the harder it may be to gather evidence and assert your rights. The attorneys at Pribila and Fields are here to help Colorado Springs residents fight back against insurance bad faith and get the compensation they’re entitled to.

To discuss your case with our legal team, contact us today. We’ll review your claim, explain your options, and help you take the next step toward holding your insurance company accountable.