Tag Archives: California

California Regulations Require That an Insurer’s Preferred Vendor Return Property to Its Pre-Loss Condition – A Quick Guide to What You Need to Know

It is becoming more and more common that insurance companies are recommending and suggesting that their “preferred vendors” perform loss repairs. California offers insureds protection if they opt to use a preferred vendor. Under the Fairs Claims Settlement Practices Regulations, if an insurer recommends a vendor, the insurer is essentially required to guaranty that vendor’s … Continue Reading

California’s Insurance Adjuster Act of 2019 Is Coming

California’s Senate Bill 2401 is making its way through the legislature and will hopefully bring some important changes to the way insurance companies train their out of state adjusters who handle California based policyholder’s claims. The bill, also known as the Insurance Adjuster Act of 2019, was created by Senator Bill Dodd to eliminate confusion … Continue Reading

Insurance Company Act in Bad Faith? Can It Be Punished? What Policyholders Need To Know About California Bad Faith Law

Insurance policyholders who are considering suing their insurance companies for bad faith need to consider many pros and cons, including the potential for financial compensation. California juries can allocate the money they award policyholders to several categories, such as unpaid policy benefits, attorney fees, and punitive damages. This post addresses punitive damages and looks at … Continue Reading

Insurance Companies Cannot Deduct The Cost Of Land From Your Replacement Home Purchase in California

Many insurance policyholders who have lost homes in the devastating California wildfires call our firm and ask, “Can my insurance company really deduct the value of the land under the replacement home I purchased from my claim payment?” This is a great question because this is now an unlawful tactic by the insurance companies that … Continue Reading

Does an Insurance Adjuster Have Deadlines To Work and Finish My Claim? A California Guide

The California Fair Claims Settlement Practices Act imposes multiple deadlines to respond and report to insureds during a claim adjustment. Knowing and understanding an insurer’s reporting duties and deadlines can speed up the adjustment and payment of a claim. Although a failure to meet a deadline by a day or two may not, in and … Continue Reading

Hidden Damage from Wildfire Claims

Losses from wildfires across the United States over the past decade have added up to $5.1 billion.1 In addition to damage typically expected from fires (smoke, soot, ash, water from fire-fighting hoses and extinguisher chemicals), some homeowners may face the additional risk of damage caused by suppression efforts, specifically aviation-based firefighting.… Continue Reading

When Can You Ask for Reformation?

Everyone in the insurance industry has heard the term reformation, but it is often misunderstood. In California (and elsewhere), the legal right to reformation originated over a century ago when we still had separate courts of “law” and “equity.” Reformation was a creature of the latter, designed to prevent one party from using a mistake … Continue Reading

Applying Depreciation in California – Understanding the Guidelines

The California Insurance Code mandates if a property insurance policy requires actual cash value payment, the payment must be based on the property’s depreciation for two types of claims: (1) a partial loss to a structure, i.e., a home or building and (2) damaged contents, i.e., personal property or business personal property.1 Fortunately, there is … Continue Reading

Potential Changes to California’s Insurance Code Section 2051 Impacts Total loss Valuation on ACV Policies

Are California homeowners entitled to collect actual cash value (“ACV”) or replacement cost values (“RCV”) for property claims? It depends on what type of policy you have and whether you suffered a total or partial loss of your property. What’s more, in a few weeks, the California Assembly may vote to change existing law. To … Continue Reading

Summary of California Property Insurance Legislation Enacted in 2018

California residents were not spared from disaster in 2018. Instead, devastating wildfires continued, which included the biggest and most devastating wildfires to ever ravage California. The continued disasters were more frequent and begun much earlier during California’s prolonged dry period. The number and size of the wildfires along with insurance carriers’ claim handling have brought … Continue Reading

California Passes Law Requiring Insurance Companies Take Specific Measures To Periodically Review The Estimated Replacement Cost Of Structures Insured Under Residential Property Insurance Policies

Last month, California passed legislation that requires residential property insurers to take specific measures to review the estimated cost of rebuilding or repairing structures insured under residential property insurance policies. Assembly Bill 1797 added section 10103.4 to California’s Insurance Code. With certain, limited exceptions, under the new statute, residential property insurers must, at least biennially, … Continue Reading

Why California Insurance Reform Can Improve Disaster Recovery in the Future

As many Californians continue to repair, rebuild, and regain financial health after the disasters throughout the State, many are looking at insurance reform as a solution for the future. Insurers should provide the funds due to individuals and businesses after a disaster, but as surveys have shown, these funds don’t always flow as they should.1… Continue Reading

Mudslide in California—Are You Covered?

As everyone watching the news knows, there were horrific mudslides in Santa Barbara County this week caused by flash flooding in the fire-scarred Santa Ynez Mountains. Due to the fires that have ravaged Southern California in the past month, the scorched earth—lacking shrubs that can absorb water—is especially susceptible to mudslide when there is a … Continue Reading

Department of Insurance Bulletin Provides Notice to Insurance Companies and Useful Information for Wildfire Victims

Last month, the California Department of Insurance issued a notice to insurance companies, insurance agents, and public adjusters regarding the recent wildfires in the state. Although the notice is directed to insurance companies, agents, and adjusters, it provides useful information for policyholders affected by the wildfires. According to the Department of Insurance press release discussing … Continue Reading

Post-loss Assignment of Claims in California

In a prior blog, I discussed the California Supreme Court’s decision in Fluor Corporation v. Superior Court,1 regarding the post-loss assignment of insurance benefits. In Fluor, the California Supreme Court held that section 520 of California’s Insurance Code prohibits insurance companies from refusing to honor post-loss assignments of benefits, regardless of whether the assigned benefits … Continue Reading
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