If you are a homeowner who suffered a loss due to fire, water, or theft you may be entitled to damages under California law against the insurer if the insurer, if the insurer fails to make them whole again.  In other words the insurer must restore the homeowner to the pre- losss condition.  Policyholders pay premiums, giving rise to the duty of insurers to provide coverage in the event of an insured loss.  

When an insurer improperly denies coverage, thereby failing to cover all insured losses, the policyholder the policyholder has a claim for breach of contract.  

In addition insurers are often found to be acting in bad faith with respect to claims handling processes and procedures.  This could lead to a lawsuit for breach of the covenenant of good faith and fair dealing.  Morever, when the insured is over the age of 65, there are damages for financial elder abuse.  this is an under utilized avenue for compansation for elderly people that have been mistreated by the insruance company.  

WHAT DO I HAVE TO SHOW TO HAVE A BREACH OF CONTRACT ACTION AGAINS THE INSURED?

To prove a cause of action for breach of contract the plaintiff must prove a brech of the terms of the insurance policy contract.  and an amount of damages that were caused by the breach.   There are various breach of contract categories of damages dwelling loss and repair personal injury loss and loss of use.  

DWELLING LOSS AND REPAIR

Generally an insured is entitled to the difference in market value of the home immediately following the loss, or the immediate repair, or the reasonable cost of repair if that cost is less then the dimunination of value of the property.  

In trial the  the insured must provide the repairs were necesssitated by the the insured loss.  and it is notable that the insured is not entitled to be placed in a better position as a result of the loss sometimes called "betterment" by the industry.  However, in the instance of a older structure code upgrades are often required by loca or state authorites.  The insurers obligation to fund code upgrades is governed by the terms of the homeowners policy and is often limited by policy language.  

PERSONAL PROPERTY

The limit for personal property coverage is usually a fixed percentage of the property-insurance coverage with the industry standard typically between 40-70 percent.  of the dwelling coverage.  Personal property covers the contents of the insureds home.  typically includes drapes, clothing, consumer electronics jewelry and other non-affixed contents in the home. 

Generally the insured is entitled to the difference in the market value of the personal property immediately before the incident or the reasonable cost of the repair if that is less.  Depreciation adjustment vary based upon the condition and age of the property which is often requires detailed proof testimony and expert evaluation.  

If the polcy provides for the replacement cost coverage then the insured is reimbursed for the cost to buy the personal property again in a new condition (without deduction for depreciation) 

Loss of use refers to the necessary increase in living expenses incurred by an insurred while the insurred home was uninhabitible due to a covered loss.  It is abailable under coverage D of most homeowners policies.  Loss of use is only available as long as the insured home was uninhabitable.  and the length of time loss-of-use benefits are available to an isured are typically governed by the contract of insurance.  

Insurers have a duty not to act in bad faith in dealing with an insured.  The insurer must consider the interest of the insured and this must be done. 

If you have any question call us at 559-441-1418.