You pay premiums expecting your insurer to be there when you need it. When an insurance company unreasonably denies, delays, or underpays a valid claim, it may be acting in bad faith — and Iowa law provides remedies.
What Bad Faith Looks Like
Bad faith can include denying a claim without a reasonable basis, failing to investigate, unreasonable delay, or refusing to pay a clearly valid claim. These tactics are most common in UM/UIM and first-party claims against your own insurer.
Iowa's Recognition of Bad Faith
Iowa courts recognize a first-party bad-faith cause of action, which can expose an insurer to liability beyond the original claim amount. This gives insurers a strong incentive to deal fairly.
Documenting the Insurer's Conduct
Keeping records of communications, denials, and delays helps establish bad faith. An attorney can evaluate whether the insurer's conduct crossed the line and hold it accountable.
Have questions about your own situation? Get a free, confidential case review. You pay no fee unless you win. Call 973-566-5599.
This article is for general informational purposes only and is not legal advice. For guidance on your specific situation, consult a licensed Iowa attorney.