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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 112751
Experience:  Attorney experienced in commercial litigation.
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I am having a Bad faith issue with my insurance company who

Customer Question

I am having a Bad faith issue with my insurance company who has mislead me for over a year with the claims that they are attempting to get funds back from a contractor who fraudulently endorsed a three party check. It turns out that the insurance company was deliberately delaying the process of retrieving the check because I had a year from the date of the loss to have work completed or the Less Recoverable Depreciation value would be off the table. I am at the point that I am now at the point of not paying my insurance premium until the insurance company lives up to there commitment. I realize that once this occurs the insurance company will contact my mortgage company and inform them of me not having insurance coverage on the home. Once they do this the mortgage company will attach insurance onto my mortgage payment which would be much higher premium. My question to you is what will happen if I continue to pay my mortgage premium and not the insurance that they will attach to it, can the mortgage company foreclose on my property and if so would it be immediately or would there be a hearing before a judge. My position would of course be that this is all the fault of the insurance company for acting in Bad Faith in not getting back the check that they assured me and my mortgage company they would do within 3-month and are now claiming according to my mortgage company they had no real intentions of getting the check back it was all a rouse in hopes that I would go after the contractor with a law suit. Would this be a good idea and if not what would you suggest?
Submitted: 10 months ago.
Category: Consumer Protection Law
Expert:  John replied 10 months ago.

Error

Expert:  Law Educator, Esq. replied 10 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If you do not make payments on your insurance because they did not properly represent you on this policy, then they will indeed cancel you and your mortgage company will issue very high priced insurance.
Your proper recourse in this matter is a breach of contract in bad faith claim against your insurer and also against the contractor in the same suit for breach of contract. You would be seeking to hold the insurer and contractor jointly and severally liable by naming both in the same suit.
If you prove your insurer was in bad faith, that would entitle you to triple damages plus attorney's fees from them for their conduct. So, I would suggest that the next step is not refusing to pay the premiums, but filing a civil suit with a local consumer protection or insurance law attorney.