What actions should I take if my own insurance company is unfairly delaying or denying my claim in bad faith?

If your insurance company is unfairly delaying or denying your claim, you can take specific actions to enforce your rights under California law. Here are the steps you should take to address potential insurance bad faith. Step 1: Document Everything Immediately organize all documents related to your claim. Collect your insurance policy, all written correspondence (letters and emails), and photos or records supporting your claim. Create a log of every phone call with the insurance company, noting the date, time, the representative's name, and a summary of the conversation. Step 2: Send a Formal Demand Letter Write a clear, professional letter to the adjuster handling your claim. Summarize the facts, reference your policy number, state why you believe the delay or denial is unreasonable, and demand payment of the benefits you are owed by a specific deadline (e.g., 15-30 days). Send this letter via certified mail with a return receipt requested to prove they received it. Step 3: Request Your Complete Claim File In your letter, or in a separate one, formally request a complete and certified copy of your entire claim file from the insurer. Under California law, you have a right to this information. This file contains the adjuster's notes, internal assessments, and expert reports, which are crucial evidence. Step 4: File a Complaint with the Department of Insurance If the insurer does not respond appropriately, file a formal complaint against them with the California Department of Insurance (CDI). You can do this online at www.insurance.ca.gov. The CDI will investigate your complaint and can pressure the insurer to act, but it cannot force payment or award damages. Step 5: Consult a Bad Faith Insurance Attorney If your claim remains unresolved, you must speak with an attorney who specializes in insurance bad faith. An attorney can properly evaluate whether the insurer's conduct violates California Insurance Code Section 790.03(h) and determine if you have a case for damages beyond your policy benefits, including emotional distress and punitive damages. Important Details: Insurance bad faith is more than just a simple disagreement over your claim's value; it involves unreasonable conduct without proper cause. Examples include failing to conduct a thorough investigation, deliberately misinterpreting the policy language, or making unreasonably low settlement offers. Warnings: Be aware of strict deadlines. The statute of limitations for filing a bad faith lawsuit in California is generally two years from the date of the unreasonable denial or delay. Missing this deadline will permanently bar your ability to sue. This is general information and does not constitute legal advice. For complex situations, you should consult with a qualified California attorney to protect your rights.