The California law firm of Coddington, Hicks & Danforth represents insured parties in claims against insurance companies, including first and third party commercial and personal coverage and claims of bad faith. Our broad experience in insurance representation gives us insight into the procedures insurance companies follow when evaluating a claim, and we utilize this in-depth knowledge to counsel policyholders regarding their coverage and in all types of disputes.
Insurance Bad Faith
Businesses, families, and individuals alike purchase insurance policies to protect themselves from unforeseen disasters. After years of paying on their policies, policyholders expect insurance providers to promptly and completely pay on a claim. When an insurance company fails to pay on a valid claim, our attorneys can assist in bringing an action for bad faith. Utilizing our experience representing insurers, we help policyholders to understand their policies and evaluate whether or not to bring a suit for bad faith. Examples of an insurer’s bad faith include:
- Failing to properly investigate and value a claim;
- Causing an undue delay in processing a claim;
- Undervaluing the level of property, commercial, or personal damages;
- Only providing partial compensation or covering partial repairs when the policyholder is entitled to complete coverage;
- Alleging that damages are not covered by the policy, when in fact they are;
- Wrongfully denying the claim for any unjustified reason in order to avoid compensating the policyholder.
Rescission of a Policy
Another way insurance companies may attempt to avoid paying on a policy is by rescinding the policy. In this case, an insurance company may conduct an investigation into the original policy application to determine if there is a possibility the policyholder misrepresented a material fact. If the insurer finds such a misrepresentation, the insurer may be entitled to rescind the contract and refuse to pay on a claim. However, in many cases there is no actual misrepresentation, or an insignificant mistake may not be enough to entitle the insurance company to rescind the policy.
Third Party Claims
Bad faith claims can also arise in the third-party insurance context. Most insurance policies contain a duty to defend the insured in lawsuits brought against them by injured third parties, such as in an automobile accident. In addition, in some instances, an insurance company’s failure to accept a reasonable settlement demand by a third party may give rise to a claim of bad faith and extra-contractual damages (those exceeding the policy limits).
Types of Insurance Policies
These issues can arise in many different types of insurance policies, including:
- Aviation Insurance
- Automobile Insurance
- Commercial Insurance
- Homeowners’ Insurance
- Renters’ Insurance
- Title Insurance
- Life Insurance
- Health Insurance
- Workers’ Compensation
California Policyholder Representation
As a premier insurance firm, Coddington, Hicks & Danforth represents insured parties in all types of disputes with insurance companies, arising from both first and third party claims. For personalized assistance in your insurance dispute, contact our Redwood City law office today.