Homeowner’s Insurance in California: Legal Rights (Part-1)
California has enacted more laws to protect the rights of insurance policyholders than any other state in the country. While this is undoubtedly a good thing, the downside is the complex and voluminous documentation that covers these laws. Most people cannot but shy away from going through the entire volume. In fact, many people in the insurance industry, including claim adjusters, do not have complete knowledge of them.
Consequently, through no fault of their own, and with no attempt on the part of the insurance companies to help out, claimants in California face many problems. Often they do not receive the full payment due to them, or the payment is inexplicably delayed. Good knowledge of your rights can help you receive fair treatment from insurance companies. A few of your crucial legal rights are listed below for your benefit.
Good faith settlements
The insurer must act in good faith and must attempt to “effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear.” Moreover, the insurer cannot settle a claim “for less than the amount to which a reasonable person would have believed he or she was entitled by reference to written or printed advertising material accompanying or made part of the application.” In addition, depreciation/actual cash value holdbacks must be reasonable and not excessive.
Clear prompt communications
Your insurer must respond to all your questions and other communications within “15 calendar days”, and there must be “a complete response based on the facts then known.” The insurer is also duty bound to inform you about all deadlines that may apply to a claim you file, including any deadline that may exist for filing a lawsuit against it.
To ensure that you receive the service you are entitled to, it is best to communicate with the insurer, on important matters, by letter or email so that there is a record of who said what and when.
Fair claims process
The processing of a claim must be transparent and fair. You have the right to see all documents the insurer may have or create relating to a claim you have filed, including any that affect the valuation process. In other words, you have the right to see all valuations, reports, photographs, material estimates, content and construction depreciation schedules and so on.
On request, the insurer must supply you with copies of all these documents for your perusal and review. What you are not entitled to are attorney-client communications and work products, which are privileged.
Fair investigation
An insurer is bound to gather whatever information is reasonably required to process a claim and it is your responsibility to cooperate in the investigations. In case you are uncomfortable with questions asked of you via a telephone interview, you can ask for a written list of questions, which you may respond to in writing.
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Good faith settlements
The insurer must act in good faith and must attempt to “effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear.” Moreover, the insurer cannot settle a claim “for less than the amount to which a reasonable person would have believed he or she was entitled by reference to written or printed advertising material accompanying or made part of the application.” In addition, depreciation/actual cash value holdbacks must be reasonable and not excessive.
Clear prompt communications
Your insurer must respond to all your questions and other communications within “15 calendar days”, and there must be “a complete response based on the facts then known.” The insurer is also duty bound to inform you about all deadlines that may apply to a claim you file, including any deadline that may exist for filing a lawsuit against it.
To ensure that you receive the service you are entitled to, it is best to communicate with the insurer, on important matters, by letter or email so that there is a record of who said what and when.
Fair claims process
The processing of a claim must be transparent and fair. You have the right to see all documents the insurer may have or create relating to a claim you have filed, including any that affect the valuation process. In other words, you have the right to see all valuations, reports, photographs, material estimates, content and construction depreciation schedules and so on.
On request, the insurer must supply you with copies of all these documents for your perusal and review. What you are not entitled to are attorney-client communications and work products, which are privileged.
Fair investigation
An insurer is bound to gather whatever information is reasonably required to process a claim and it is your responsibility to cooperate in the investigations. In case you are uncomfortable with questions asked of you via a telephone interview, you can ask for a written list of questions, which you may respond to in writing.
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