Hail is relatively damaging weather. Depending on the duration of the storm, the strength of the wind and the size of the hail that falls, hailstorms can produce substantial damage to real property, forcing owners to make expensive repairs.
Hail can dent siding, damage roofing and crack windows. North Dakota sees more than its fair share of hailstorms, making hail-related claims relatively common across the state. Major hailstorms are a regular occurrence, and insurance companies frequently get flooded with claims after storms pass through the state.
People who carry homeowners’ insurance should be able to file claims for necessary repairs to ensure that their homes are safe and structurally sound after sustaining hailstorm damage. Unfortunately, insurance companies may try to unfairly deny valid claims by asserting that the claim is merely cosmetic and not structurally necessary. Such acts may constitute bad faith insurance practices.
When does a denial become bad faith?
The difference between structural damage and cosmetic damage is relatively straightforward. Cosmetic damage only affects the appearance of the property, while structural damage may compromise key systems, including the stability of the siding and insulation or the protection provided by the roof.
In cases where hail damage has clearly affected the thermal protection of a building or put the property at risk of water incursion and similar issues due to damage to the siding or windows, then the damage is not merely cosmetic. In claims where there is a question about whether the damage is cosmetic or structural, those inspecting the property generally need to perform thorough examinations.
They should validate the extent of the damage. If the inspector did not exit their vehicle or get up on a ladder to look closely at hail storm damage, their determination on the claim may be questionable, at best.
Bad faith insurance practices can involve denying reasonable claims. It is also a bad faith practice to provide a settlement that is far below the policy limits and the total property damage expenses. Property owners may need to document the storm damage themselves, review their policy paperwork and get a second opinion from a repair or construction professional.
In cases where policyholders can show that damage may cost substantially more than an offered settlement amount or wherein the damage clearly goes beyond cosmetic issues, they may need to take legal action against an insurance company to obtain the coverage that they deserve. Reviewing a policy and damage with a lawyer familiar with complex insurance matters can be helpful. A bad faith insurance lawsuit – when approached thoughtfully – can lead to increased compensation and accountability for an insurance company acting in bad faith.