Breach of Contract: How California Property Insurance Lawyers Can Help

The challenges of property insurance claims in California can be daunting, especially when it involves a breach of contract. At The Morgan Law Group, our property insurance lawyers in California help homeowners and property owners throughout California. Our service lies in addressing complex issues related to insurance breach of contract and ensuring our clients receive the compensation they deserve.

Understanding Breach of Contract in California

A breach of contract of property insurance in California is identified when an insurance company does not uphold the commitments set forth in the policy agreement. The various manifestations of a breach of contract in California property insurance settings are critical for policyholders to understand as they can severely impact their recovery process after an incident. 

Here’s a closer look at each form of breach and its implications:

• Denial of a Legitimate Claim: One of the most straightforward breaches occurs when an insurance company outright denies a claim that should be covered under the terms of the policy. This denial can be based on an erroneous interpretation of the policy details or an unjustified reason that contradicts the policy’s provisions. Such denials can leave policyholders facing significant financial burdens, as they may need to cover repair or replacement costs entirely out of pocket.

• Underestimation of Property Damages: Insurers might also breach their contract by underestimating the damages to a property. This often involves assessing the damage at a lower value than what is factual, leading to inadequate compensation that does not fully cover the necessary repairs. This discrepancy can force the policyholder to either accept a lower-quality repair service or to supplement the payment out of their own funds to achieve the required restoration quality.

• Prolonged Delays in Processing Claims: Delays in the processing of claims can also constitute a breach of a property insurance contract. Insurance companies are obligated to handle claims within a reasonable timeframe. Excessive delays can strain the financial and emotional resilience of the insured, especially if they are prevented from using their property or are living in a damaged state longer than necessary. Delays not only stall the recovery process but can also lead to additional costs and losses, including temporary housing expenses or lost rental income.

Each of these breaches can significantly impact a policyholder’s ability to effectively recover from an incident. The financial, emotional, and practical challenges posed by these breaches underscore the importance of having competent California property insurance lawyers.

California Insurance Code: Fair Practices & Good Faith 

California’s legal statutes are designed to protect policyholders from unfair practices by insurance companies. The key provision – Section 790.03(h) of the California Insurance Code – is critical in setting the standards for insurer conduct and the handling of claims. 

Section 790.03(h) of the California Insurance Code is part of the broader Unfair Practices Act, which outlines various acts deemed unfair or deceptive in the business of insurance. This section specifically mandates that insurers must engage in fair dealing and good faith with their clients. It categorizes actions such as misrepresenting policy terms, failing to acknowledge communications regarding claims, and not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear as violations.

A breach under this statute can occur if an insurance company:

• Fails to provide a prompt and reasonable explanation for the denial of a claim.
• Does not affirm or deny coverage of claims within a reasonable time after proof of loss statements have been completed.
• Attempts to settle a claim for less than what a reasonable person would believe they were entitled to based on their policy advertisements or written assurances.

When insurers deviate from their obligations, policyholders are entitled to seek legal recourse, which may include filing a lawsuit for breach of contract and bad faith. If you are facing such issues, you are encouraged to consult skilled property insurance lawyers in California who have a deep understanding of the intricacies of insurance law and can effectively navigate the legal system to advocate on their behalf. 

How Our California Property Insurance Lawyers Can Help

The Morgan Law Group is adept at tackling the nuances of insurance breach of contract cases. Our property insurance lawyers in California offer comprehensive legal services to guide you through the process of challenging your insurer’s decision. 

Here’s how our team can assist you:

• Case Evaluation: We meticulously review your insurance policy and any related documentation to fully understand the scope and specifics of the alleged breach of contract. This initial evaluation is crucial as it helps us to formulate a strategic approach tailored to the unique aspects of your case. We aim to identify the best legal pathways to address the breach, ensuring that all angles are considered for a robust defense.
• Legal Representation: Our property insurance lawyers advocate on your behalf, engaging directly with insurance companies on your behalf, challenging them on unfair practices, and pushing for adherence to contractual obligations. Should it become necessary, we are prepared to escalate the matter to litigation to protect your rights and strive for a just resolution. Our goal is to secure an outcome that upholds your interests and compensates for any injustices experienced due to the breach.
• Negotiation and Settlement: We leverage our extensive skills to negotiate with insurers. Our approach is designed to secure a settlement that not only addresses the immediate value of your claim but also compensates for any additional losses or damages incurred as a result of the breach. We aim for negotiations that reflect the true value of your claim, pushing back against any attempts by insurers to undervalue or dismiss your rightful compensation.
• Trial Advocacy: If a satisfactory settlement is not achievable, our skilled business litigation lawyers are prepared to represent your interests in court. Our trial advocacy is focused on presenting a clear and persuasive case to the court, aiming to secure a verdict that favors your position and ensures compensation for the breach of the property insurance contract.

If you’re dealing with a breach of a property insurance contract, it’s crucial to seek professional legal help. The Morgan Law Group stands ready to support you in holding insurance companies accountable and ensuring that your rights are protected under California insurance law. Contact us today and let our experienced property insurance lawyers evaluate your case for free and explore your legal options.