Bad Faith Homeowners Insurance
Attorney

Bad Faith Homeowners Insurance Attorney

Homeowners insurance provides you with a piece of mind in the unexpected case that something was to happen. Homeowners insurance is oftentimes required not only for homes, but also for condos and apartment complexes. Homeowners insurance is supposed to be there for you in a case of an unexpected circumstance and you are left looking for other housing. Homeowners insurance companies have an obligation to act in good faith and make sure that their insurer gets the compensation they need as contracted in under their insurance policy coverage.

But what happens when your homeowner’s insurance company acts in bad faith?  if you have been mistreated by your homeowner’s insurance company, you have the right to hold them responsible under a bad faith lawsuit. A bad faith lawsuit holds the homeowner’s insurance company responsible for their malicious behavior. You may be entitled to a variety of compensation depending on the circumstances.

Contact our trusted California bad faith insurance attorneys today to see how you can get the compensation you deserve. You do not have to go through an improperly denied claim.

What is bad faith?

Bad faith happens when an insurance company unfairly denies, delays, or underpays a legitimate claim. If this happens, homeowners may be able to sue for damages beyond their policy coverage, including legal fees and compensation for emotional distress. When this occurs, the insurance company could be held liable. That is why it is very important to have an experienced attorney on your side that has dealt with bad faith insurance claims before and knows exactly how to maneuver through the legal process.

The key term in bad faith Insurance lawsuits is “good faith and fair dealing” which exists by the law and mandates that each insurance company has a duty to their insurer to act with good faith. This means that they cannot breach any contract.

What are the different types of bad faith claims?

There are two different types of bad faith claims:

• First-party insurance claims: first-party insurance claims occur when the insurance company denies paying the claim without a valid reason. This occurs when you submit your claim to the insurance company, and your insurance company denies your claim without being reasonable. For example, if your insurance company did not hold any investigations yet denied your claim, you may have a bad faith first-party insurance claim against them.
• Third-party insurance claims: this occurs when the insurance company pays out liability caused by the insurer. Your insurance company must defend you against any lawsuit and pay the defense costs. If your insurance company does not indemnify you or ensure you up to the policy limits, you may be able to hold them responsible under a bad faith claim.

Why should I hire a homeowner’s insurance bad faith attorney?

• If something were to happen to your home, the first thing your insurance company would do is try to get a statement out of you or offer you a low amount. Remember that the insurance company will try to protect themselves rather than the insurer. This means that any chance they get, and the earlier they can reach out to you, they would take advantage of the situation. That is why you need an attorney as soon as something occurs to your home.
• Our attorneys work on a contingency basis, and will front all the costs associated with litigating your bad faith claim.
• Our attorneys know how to negotiate and communicate with homeowners’ insurance companies.

What does homeowner’s insurance cover?

• Property damage: this is one of the most common claims made for homeowners insurance claims. This occurs when your home has been damaged, and you seek compensation to repair your home. If the repairs are severe and your policy includes Additional Living Expenses coverage, your insurance company may be responsible for temporary housing costs. However, this depends on your specific policy limits and exclusions, so it’s crucial to review your homeowner’s insurance agreement or consult with an attorney.
• Defense: this is an often overlooked policy in homeowners’ insurance coverages. Your homeowner’s insurance company must defend you if there have been any claims against you and your property. For example, if someone has slipped and fallen on your property, and filed the claim against you, your homeowner’s insurance company must represent you and put your interests first.

What to Do Before Filing a Bad Faith Lawsuit

• Document Everything: Keep records of all communication with your insurance company, including emails, letters, and call logs.
• Request a Written Explanation: If your claim is denied, ask for a detailed reason in writing.
• File a Complaint: You can report unfair insurance practices to the
• California Department of Insurance before pursuing legal action.
• Consult an Attorney: A bad faith attorney can review your case and determine the best course of action.

What are examples of bad faith tactics from homeowners’ insurance companies?

• When the insurance company neglects the valid claim.
• When the insurance company delays the investigation into the homeowner’s insurance claim
• When the insurance company fails to adhere to their own standards
• When the insurance company does not communicate with you
• When the insurance company underpays out your claim
• When the insurance company finds an excuse to avoid paying out the claim
• When the insurance company fails to provide you with all the information while you are signing up for coverage
• When the insurance company uses false or deceptive advertising
• When the insurance company raises your premium after you have filed a claim with them
• When the insurance company avoids settling with you and your attorney
• When the insurance company refrains from telling you about the appeals process that goes along with their claims

How do I prove bad faith in California?

The plaintiff, also known as the party filing the lawsuit, must have to show that:

• The insurance company did not have a reasonable basis for denying the homeowners insurance claim
• The insurance company denied the claim recklessly or knowingly

What type of compensation could I receive for my bad faith homeowner’s insurance claim?

• Emotional distress: it could be very stressful to go through such an experience as losing your home and having your insurance company treat you unfairly after paying months of payments. You could receive compensation for the anxiety, depression, along with any PTSD you have experienced from dealing with the insurance companies’ bad faith.
• The original payment you were promised under your homeowners insurance policy: this refers to the amount you originally should have received had the insurance company not engaged in bad faith tactics.
• Attorneys’ fees: this is one of the types of compensation that is usually underestimated. Legal fees and attorney fees could be reimbursed by your homeowners insurance company in a bad faith lawsuit.
• Interest: if you have suffered damages from the homeowner’s insurance company’s delay when paying on your claim, you may collect interest on those payments.
• Punitive damages: this occurs when the court finds that the homeowners insurance company engaged in malicious behavior. Meaning that they knew exactly what they were doing and tried to bring harm towards their insurer.

Frequently Asked Questions

What are some common warning signs that my insurance company is acting in bad faith?

Some common red flags that indicate an insurance company may be acting in bad faith include unexplained claim denials, repeated delays in processing your claim, or failure to provide a clear reason for denial. Additionally, if your insurer is making lowball settlement offers that are far below the fair market value of your claim, or refusing to communicate with you about your case, these could be signs of unethical practices. If you suspect bad faith, it’s important to document all interactions and consult with an experienced attorney to assess your options.

Can I file a bad faith lawsuit even if my claim was partially paid?

Yes, a bad faith lawsuit can still be valid even if the insurance company partially paid your claim but failed to fulfill its full contractual obligations. Insurance companies are required to act in good faith and deal fairly with policyholders, which means offering reasonable compensation and not unnecessarily delaying payments. If you believe your insurer intentionally underpaid or dragged out the claims process to force you into accepting less than what you are owed, you may have a case for bad faith.

What types of damages can I recover if I win a bad faith lawsuit?

If you successfully prove bad faith, you may be entitled to several types of compensation beyond what your policy covers. This includes the original amount owed under your insurance policy, additional damages for emotional distress and financial hardship, and attorney’s fees incurred while pursuing your case. In cases where the insurance company’s actions were particularly malicious, the court may also award punitive damages, which are meant to punish the company and deter future misconduct.

How can I prove that my insurance company acted in bad faith?

To prove bad faith, you need strong evidence that your insurer intentionally denied or delayed your claim without a valid reason. This can include email correspondence, recorded phone calls, denial letters, policy documents, and proof that you provided all necessary documentation but were still refused payment. Additionally, expert witnesses—such as insurance industry professionals—can testify that your insurer failed to adhere to industry standards. Consulting a lawyer with experience in bad faith cases is essential in gathering the right evidence and building a strong claim.

Should I try negotiating with my insurance company before filing a lawsuit?

Yes, before pursuing a lawsuit, it’s often best to attempt negotiations with your insurance company and request a formal review of your claim. Sometimes, providing additional documentation or escalating the issue to a supervisor can result in a fair settlement without legal action. However, if the insurer continues to stonewall, delay, or make unfair offers, filing a lawsuit may be necessary to protect your rights and ensure you receive the compensation you deserve. An attorney can guide you through the process and help determine whether further negotiation or legal action is the best course of action.