An insurance claim can move slowly without crossing the line into a bad faith practice. A complicated fire loss may require inspections, repair estimates and expert opinions, for example.
However, when an insurer uses delay as a strategy rather than as a necessary part of its investigation, California policyholders may have grounds to challenge its conduct.
The calendar is only part of the story
California claim-handling regulations require insurers to acknowledge a claim and provide necessary forms or assistance within 15 days. After receiving proof of claim, an insurer has 40 days to accept or deny it. If additional time is reasonably necessary, the company must explain why and provide written updates every 30 days until it reaches a decision.
Missing one deadline does not automatically establish bad faith. A delay becomes more suspicious when the company cannot provide a legitimate explanation or repeatedly promises action without making meaningful progress.
What does an unreasonable delay look like?
Problematic conduct may include:
- Assigning multiple adjusters who restart the investigation
- Requesting documents that the policyholder already supplied
- Leaving calls unanswered for weeks
- Refusing to inspect damaged property promptly
- Disregarding available evidence
- Waiting until financial pressure forces the policyholder to accept less than the claim may be worth
In these cases, context matters. Investigating possible fraud or evaluating extensive structural damage can justify additional time. Staffing shortages, internal disorganization and an adjuster’s heavy workload do not excuse an insurer from handling claims reasonably.
How can policyholders respond?
Policyholders should create a written record from the beginning, like emails, letters, estimates and proof of every document submitted. A timeline showing unanswered messages, shifting explanations and missed commitments may reveal whether the delay was unavoidable or deliberate.
When an insurer’s conduct lacks a reasonable basis and causes additional harm, the dispute may extend beyond unpaid policy benefits. A California insurance legal professional can review an individual’s complete claim history and determine whether the delay that they’re experiencing may support a bad faith action.
