Mississippi Insurance Claims and Your Right to Recover What You’re Owed
When Mississippi businesses and homeowners file insurance claims after devastating losses—such as fires, business interruption, or structural damage—they expect their insurance carrier to honor the contract they’ve paid into. Unfortunately, that’s not always the case. Insurance companies sometimes wrongfully deny claims, delay payments, or offer far less than what’s owed. These tactics may fall into two different legal categories: breach of contract and bad faith.
Understanding the difference between the two is critical. While breach of contract involves a failure to uphold the written terms of the policy, bad faith goes further—alleging that the insurer acted dishonestly, unreasonably, or intentionally to avoid payment. And in Mississippi, a successful bad faith claim can entitle you to extra-contractual damages, including punitive damages, beyond the value of the policy itself.
At Barrett Law, PLLC, we help Mississippi policyholders—both businesses and homeowners—stand up to insurance companies that act in bad faith or breach their contracts. Attorney Jonathan Barrett has spent decades representing claimants in fire loss litigation, business interruption claims, and other property damage cases. Whether you’re recovering from a warehouse fire in Hattiesburg or a home blaze in Oxford, we know how to fight back when insurers won’t do the right thing.
Breach of Contract vs. Bad Faith: Mississippi Insurance Claims
Let’s start by breaking down the definitions:
What Is Breach of Contract in a Mississippi Insurance Claim?
A breach of contract occurs when the insurance company fails to fulfill its contractual obligations outlined in your insurance policy. This could include:
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Denying a valid claim without justifiable reason
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Failing to investigate your loss in a timely manner
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Refusing to pay benefits clearly owed under the policy
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Unreasonably delaying claim payments
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Paying less than what is contractually due
Under Mississippi law, when you prove a breach of contract, you’re entitled to contractual damages—meaning what the policy says you are owed. This could include structural repair costs, contents losses, additional living expenses, or business income coverage.
What Is Bad Faith in a Mississippi Insurance Claim?
Bad faith involves more than just failing to perform. It refers to an insurer’s intentional or reckless refusal to meet its obligations under the policy, despite knowing the claim is valid.
Mississippi courts define bad faith as “the intentional refusal by the insurer to perform a contractual obligation without a legitimate or arguable reason.” Common examples include:
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Accusing the policyholder of fraud without evidence
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Fabricating reasons to deny coverage
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Ignoring evidence that supports the claim
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Delaying payment to pressure a low settlement
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Misrepresenting policy language
When bad faith is proven, Mississippi law allows for extra-contractual damages, including compensation for emotional distress and punitive damages meant to punish and deter misconduct.
Real-World Scenarios in Mississippi Fire and Property Claims
Understanding these distinctions matters because the consequences are very different:
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If your home in Southaven burns down and your insurer denies coverage claiming it was arson—without proof—that may be bad faith.
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If your commercial property in Jackson suffers smoke and water damage, and the insurer offers only partial payment without inspecting the site, that may be both a breach of contract and bad faith.
Barrett Law, PLLC works with investigators, forensic experts, appraisers, and contractors to document losses and expose insurer misconduct. When the line is crossed into bad faith, we pursue full damages—not just what’s owed, but what you deserve.
Who Is Affected and Why Bad Faith Insurance Tactics Matter
Bad faith and breach of contract affect people who are already under intense stress—those who have lost their homes, their income, or their businesses due to fire, storms, or other disasters. This includes:
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Homeowners displaced after house fires
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Small business owners facing denied business interruption claims
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Commercial landlords whose properties are uninhabitable
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Contractors or developers left without payment after structural damage
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Farm owners with destroyed buildings and equipment
Insurance companies often take advantage of policyholders’ vulnerable positions. They assume most people won’t fight back—or don’t know they can.
That’s where Jonathan Barrett steps in.
Mississippi Statutes Governing Insurance Bad Faith and Breach
In Mississippi, policyholders are protected by both common law and specific statutes. Key legal principles include:
Breach of Contract – Common Law Basis
There is no specific Mississippi statute for insurance contract breaches—the claim is grounded in traditional contract law. You must prove:
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A valid contract (insurance policy) existed
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You complied with its terms
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The insurer failed to perform
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You suffered damages as a result
Bad Faith – Recognized by Mississippi Supreme Court
The landmark case State Farm Fire & Cas. Co. v. Simpson, 477 So.2d 242 (Miss. 1985), confirmed that policyholders can seek damages beyond the contract amount if the insurer acts in bad faith.
Mississippi courts apply the “arguable basis” standard. If the insurer lacks a legitimate or arguable reason for denial or delay, they may be liable for:
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Emotional distress damages
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Economic losses caused by the delay
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Punitive damages for willful misconduct
Common Bad Faith Tactics in Fire and Property Claims
Policyholders should be aware of how insurers may try to avoid paying valid claims. Warning signs include:
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Claiming your business or home fire was “suspicious” without credible evidence
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Refusing to hire neutral appraisers or engineers
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Asking you to give multiple recorded statements without reason
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Threatening to deny the claim if you don’t accept a low settlement
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Ignoring the estimates you provide and relying on internal adjusters only
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Purposely misinterpreting vague policy language in their own favor
If your insurer is accusing you of wrongdoing or acting like you’re the one on trial, it may not just be a disagreement—it may be bad faith.
Actionable Steps If You Suspect a Breach or Bad Faith
If you believe your insurer is acting in bad faith, here’s what you can do:
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Get Everything in Writing – Document all communications with the insurance company.
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Request a Full Explanation – Ask for a written explanation for any denial or delay.
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Hire an Independent Adjuster – They can help assess damages fairly.
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Avoid Signing Away Rights – Never sign a release or settlement without legal review.
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Consult an Attorney Early – Especially if your claim is being delayed, underpaid, or denied.
At Barrett Law, PLLC, we help clients file breach of contract lawsuits and bad faith claims when necessary—and we often negotiate successful settlements without ever going to trial.
Mississippi Insurance Bad Faith Frequently Asked Questions (FAQs)
What is the legal definition of bad faith in Mississippi?
Bad faith occurs when an insurer denies, delays, or underpays a claim without a legitimate or arguable reason. It is not just a mistake or disagreement—it’s a knowing or reckless disregard for your rights as a policyholder.
Is every denied claim considered bad faith?
No. Insurers can deny claims for legitimate reasons. But if they ignore evidence, delay payment without cause, or create excuses to avoid payment, it may rise to bad faith.
Can I file a lawsuit for both breach of contract and bad faith?
Yes. In Mississippi, it is common to file both claims in the same lawsuit. The breach of contract claim recovers what is owed under the policy, while the bad faith claim seeks additional damages.
What damages can I recover in a bad faith case?
You may be entitled to policy benefits, emotional distress damages, legal fees, and punitive damages designed to punish the insurer and deter similar misconduct.
How long do I have to file a bad faith lawsuit in Mississippi?
Typically, the statute of limitations for breach of contract and bad faith claims is three years from the date of the breach or denial. However, timelines may vary depending on policy terms and facts.
What if the insurer blames me for starting the fire?
Insurers sometimes allege arson or misconduct to avoid paying. These accusations must be backed by real evidence. If you’re wrongly accused, you have legal options to fight back.
Can businesses file bad faith claims too?
Yes. Commercial policyholders—including retailers, contractors, hotels, and manufacturers—can pursue bad faith claims just like homeowners.
Does my policy have to be for fire coverage to claim bad faith?
No. Any type of property, casualty, or business interruption policy can give rise to a bad faith claim if the insurer mishandles it.
What if my insurer is offering less than half of what my contractor estimated?
That may be a red flag. If the offer is unreasonably low and the insurer won’t negotiate in good faith, it may be time to explore legal options.
Should I contact an attorney before accepting a settlement?
Yes. You should always have an attorney review any proposed release or final settlement—especially if you believe you’re owed more or have been mistreated during the claims process.
Have You or Your Business Losses and Damages in Mississippi?
Call Mississippi Business Insurance Claim Attorney Jonathan Barrett 24/7/365 at (601) 790-1505 for Your FREE Consultation
At Barrett Law, PLLC, we don’t let insurers get away with broken promises. Whether your insurance claim was underpaid, delayed, or outright denied, we’ll evaluate your case for both breach of contract and bad faith, and fight to hold your insurer accountable.
We serve clients across the entire state of Mississippi, including the Mississippi Gulf Coast, Central, Southern, and Northern Mississippi—Jackson, Gulfport, Southaven, Hattiesburg, Biloxi, Olive Branch, Tupelo, Meridian, Pearl, Madison, Greenville, Oxford, Clinton, Horn Lake, Brandon, and beyond.
Jonathan Barrett Fights for Mississippians – Call 24/7/365 at (601) 790-1505 to Receive Your FREE Consultation
If you suspect your insurance company is acting in bad faith or failing to honor the terms of your policy, don’t wait. You only get one chance to hold them accountable. Let Barrett Law fight for what you’re owed—and more.
