Home, auto and other insurance claim disputes

Rules insurers follow

California’s Fair Claims Settlement Practices Regulations require insurers to acknowledge claims promptly, conduct reasonable investigations, explain decisions in writing, and pay covered amounts on time. In general, insurers must acknowledge a claim within 15 days and accept or deny it within 40 days after receiving proof of claim, or explain in writing why more time is needed.

Common routes when there’s a disagreement

• Asking for the reasons in writing, including the policy language relied on.
• Appraisal: many property policies include an appraisal process for disputes over the amount of a loss.
• Department of Insurance complaint: the CDI reviews how a claim was handled and can require corrections.
• Mediation: the CDI offers mediation programs for some residential property claims, especially after disasters.
• Court: lawsuits over coverage or claim handling, subject to policy and legal time limits.

After wildfires and other disasters

California law gives policyholders additional protections after a declared disaster, including extended time frames for additional living expenses and for collecting certain benefits. The CDI’s residential property claims guide lists these.