Can You Sue Your Insurance Company for Your Claim Denial in Louisiana?

Yes, you can sue your insurance company for bad faith in Louisiana, but like any legal proceeding, it requires solid evidence, thorough documentation, and the guidance of a skilled attorney. Louisiana law provides clear protections for policyholders and understanding the steps you need to take is essential if you believe your insurer is acting unfairly.

What is the Bad Faith Law in Louisiana?

In Louisiana, bad faith law is governed by La. R.S. §  22:1892 and La. R.S. § 22:1973. Insurance companies have a duty to handle claims fairly and in good faith – and that duty is reciprocal. 

If your insurer fails to do so, such as by unreasonably delaying payment, denying valid claims, or underpaying without justification, they may be acting in bad faith. Louisiana’s bad faith laws allow policyholders to seek compensation not only for their original claim but also for damages caused by the insurer’s misconduct, including penalties and attorney’s fees.

Steps to Take Before Suing Your Insurance Company in Louisiana

If you suspect that your insurance company is acting in bad faith, it’s critical to follow these steps to protect your rights:

1. Document everything – Proving bad faith requires clear evidence that the insurer acted unfairly or dishonestly. Keep meticulous records of every interaction with your insurance company, including emails, letters, phone calls, and any explanations of delays or denials. Document any lowball offers, delays, or misrepresentations of your policy.
2. Request a written explanation – If your claim is denied or underpaid, ask your insurer for a written explanation. This will help you determine if they are acting in bad faith or if there’s a legitimate reason for their decision. It also provides you with additional documentation for your case.

3. Seek legal advice – An experienced insurance attorney is crucial when dealing with a potential bad faith claim. They can help you understand your rights under Louisiana law, evaluate your case, and determine the best course of action.

4. Send a cure period notice – In Louisiana, before filing a bad faith lawsuit, you must give the insurer 60 days’ written notice of their violation. This “cure period” allows the insurer to correct their actions. If they fail to do so within the 60-day period, you can then proceed with a lawsuit.

Contact Us at KK&P Law Firm 

If you believe your insurance company has acted in bad faith, you have rights under Louisiana law. Filing a bad faith lawsuit can help you recover compensation for your original claim as well as penalties for the insurer’s wrongful actions. However, navigating a bad faith case can be challenging, and having a knowledgeable attorney by your side is crucial.

Our team specializes in helping Louisiana homeowners fight back against unfair insurance practices. If you suspect your insurer has mishandled your claim, reach out to us for a consultation. We’ll review your case and guide you through the legal process to ensure you receive the compensation you deserve.