Newport Beach Insurance Bad Faith Lawyers

If you’re a policyholder, the insurance company has a duty to treat you fairly. In California, insurers must act in good faith when handling claims. When they delay payments, deny valid claims, or offer far less than what’s reasonable, they may be breaking that duty. These actions can leave policyholders with more than just unpaid bills. You might struggle to fix their car, repair their home, or pay for medical care.

People in neighborhoods like Corona del Mar or along Balboa Island often rely on insurance for peace of mind. When insurers don’t hold up their end, policyholders need help holding them accountable. The Newport Beach insurance and bad faith lawyers at Bentley & More LLP represent individuals and businesses who’ve been treated unfairly by their insurance companies.

With years of experience and a strong record in handling these disputes, our team understands how to push back when insurance carriers don’t follow the rules.

If you believe your insurer is mistreating you, contact Bentley & More LLP for a free consultation. We’ll review your case and help you take the next steps.

Table of Contents

Newport Beach Insurance Bad Faith Attorneys

What Is Insurance Bad Faith in California?

Insurance companies promise to help when disaster strikes. But not every insurer follows through. California law allows you to take action if your insurance company treats you unfairly or ignores your claim without a reasonable excuse.

California law requires insurers to act with “good faith and fair dealing.” This means they must handle claims honestly, respond in a timely manner, and pay valid claims without unnecessary delays or unreasonable denials. When they break this rule, it may be considered “bad faith.” That’s not just a business disagreement. It can be a legal violation.

Common Types of Bad Faith Practices

These practices can take many forms, including:

Denying a claim without a good reason
Refusing to investigate a claim properly
Delaying payment without explanation
Offering a low settlement for what a policy clearly covers
Failing to explain why a claim is denied
Misrepresenting the terms of the policy

These actions violate California law and the terms of most insurance policies.

First-Party vs. Third-Party Bad Faith Claims

In a first-party claim, you deal with your own insurer. For example, if your roof is damaged and your homeowners insurance refuses to pay, that’s a first-party claim. In a third-party claim, your insurer handles a claim someone else makes against you. For example, in an car accident where you’re being sued, your insurer must defend you. If they fail to do so properly, that can lead to a third-party bad faith case.

How Do I Know If My Insurance Company Is Acting in Bad Faith?

Most policyholders expect their insurance company to handle claims fairly. But when the process drags on, or the answers don’t match the policy terms, something may be wrong. Insurance bad faith doesn’t always involve an outright refusal to pay. It often shows up through subtle signs over time.

Warning Signs of Bad Faith Behavior

Insurers have a duty to communicate openly and process claims with honesty. Bad faith behavior often involves tactics that create confusion, delay payment, or pressure you into giving up. Some warning signs include:

Repeatedly asking for documents you already sent
Not answering your calls or emails
Switching adjusters with no clear reason
Giving vague updates or no explanation for delays
Pressuring you to accept the first settlement offer quickly

For example, if you submitted full documentation for roof damage in your Newport Shores home but haven’t received a meaningful update in weeks, your insurer may be stalling without cause.

Unreasonable Claim Denials

A denial becomes unreasonable when the insurer rejects a claim that clearly falls under the policy. Sometimes the excuse might be that the damage was “preexisting” or caused by something not covered, even when the facts say otherwise. If you’ve received a denial that doesn’t match your understanding of your policy or the situation, it may not be valid.

Excessive Delays in Processing Claims

Insurers must act within a reasonable time. That doesn’t mean payment is instant, but it should move forward after you’ve met your obligations. When a claim drags on for weeks or months without action, even after you’ve provided everything they asked for, they may be using delay tactics to avoid paying — a common situation when an accident settlement is delayed without valid reason.

Take, for instance, a business owner in the Mariner’s Mile area waiting on a commercial insurance payout. If the insurance company keeps saying they’re “reviewing” but hasn’t done anything new, that delay could signal bad faith.

Inadequate Investigation Practices

Insurers can’t skip key steps in the claim process. A fair investigation includes reviewing documents, inspecting damage, interviewing witnesses, and applying the correct policy terms. If your insurer reaches a decision too quickly or ignores evidence that supports your claim, they may not be acting fairly.

Let’s say your health insurance provider denied a surgery you need; filing a claim is not medically necessary. But they never contacted your doctor or reviewed your medical history. That kind of shortcut may point to an inadequate review.

Types of Insurance Bad Faith Cases We Handle

At Bentley & More LLP, we work with clients from neighborhoods like Newport Coast and beyond who’ve been treated unfairly by their insurance carriers. We handle a wide range of cases, including:

Auto insurance bad faith: Auto policies cover vehicle repairs, medical costs, and liability after an accident. When an insurer delays payment, denies a valid claim, or undervalues damages without a good reason, they may be acting in bad faith. We help clients when carriers refuse to provide proper coverage or reject claims they should’ve honored.
Homeowners and property insurance disputes: After a fire, storm, or break-in, you count on your homeowners insurance to cover repairs and replacement costs. Some insurers may downplay the damage, dispute the cause, or delay payment unnecessarily. We assist policyholders with residential and rental property claims who aren’t being treated fairly.
Health insurance claim denials: Some insurers deny claims for medically necessary treatments without a real reason. We can investigate whether it was done in bad faith.
Disability insurance bad faith: Perhaps your insurer won’t acknowledge long-term disability claims or stops payments too soon. We help clients challenge these decisions when the insurer isn’t honoring the policy.
Life insurance beneficiary disputes: The insurance company may deny a valid claim based on a technicality or outdated policy clause. We represent beneficiaries when carriers wrongfully withhold or reduce death benefits.
Commercial insurance bad faith: Businesses in areas like the Newport Financial District depend on insurance for property damage, liability claims, and lost income. When an insurer fails to step up during a crisis or disputes coverage without reason, the impact can be devastating. We help business owners pursue full and fair outcomes.

These are just a few examples of the kinds of cases we take on. No matter the type of insurance, our team is ready to hold your provider accountable when they refuse to treat you fairly.

What Damages Can I Recover in a Bad Faith Case?

When an insurer acts in bad faith, it causes more than just delay. You might lose income, miss out on needed repairs, or spend money fighting for coverage. The law lets you pursue recovery for these losses and more.

Economic Damages and Policy Benefits

You can recover the amount your insurer should have paid under the policy. This includes repair costs, medical bills, or income lost because you didn’t get paid on time.

Consequential Damages

Sometimes, the losses go beyond the policy. For example, if your business insurance claim was delayed and your company lost clients, those losses may be added to your case.

Punitive Damages in Egregious Cases

If the insurer’s actions show fraud, malice, or oppression, you may pursue punitive damages. These are meant to punish the insurer and discourage similar conduct.

Attorney Fees and Legal Costs

California law often allows you to recover legal fees in this type of cases. That helps level the playing field when you go up against a large insurer.

California Insurance Bad Faith Laws and Your Rights

California has some of the strongest consumer protection laws in the country when it comes to insurance conduct.

California Insurance Code Section 790.03: Lists unfair and deceptive acts by insurance companies. Violating these rules can support a bad faith claim.
Covenant of good faith and fair dealing: Found in every insurance contract. This means your insurer must treat you fairly and not interfere with your right to benefits.
Statutory penalties for unfair practices: Courts may impose penalties on companies that break these rules, especially if the conduct was deliberate.

How Long Do I Have to File a Bad Faith Lawsuit?

You don’t have forever to act. Like many legal matters, insurance bad faith cases come with deadlines.

Statute of Limitations for Bad Faith Claims

In California, you typically have two years to file this type of claim. This can vary depending on the facts of the case and the type of insurance involved.

When the Clock Starts Ticking

The timer usually starts when you first learn that the insurer is acting unfairly. For example, when they deny your claim or stop communicating without reason.

Exceptions That May Extend Filing Deadlines

Sometimes, courts allow more time. For instance, if the insurer hides information or if you were dealing with serious health problems that prevented you from acting sooner. Still, the longer you wait, the harder it can be to build your case.

What to Do If You’re Experiencing Bad Faith Insurance Issues

Start by gathering everything related to your claim. This includes your policy, letters, emails, and notes from phone calls. Keep a timeline of what happened and when. Write down who you spoke with and what they said.

Then, talk to a lawyer who handles these kinds of cases. You don’t need to face the insurance company alone. Bentley & More LLP works with people across the Newport Beach area, including residents in the Dover Shores neighborhood, to hold insurers accountable. We can review your claim and help you understand your options.

How Our Newport Beach Insurance Bad Faith Attorneys Can Help

Greg Bentley & Keith More, Pedestrian Accident Lawyers

Our legal team takes these cases seriously. We’ve helped many clients across Orange County fight back against insurers that refused to do the right thing. Here’s how we work:

We investigate your insurance claim from start to finish.
We review your policy to see what coverage you actually have.
We handle all communication with your insurer so you don’t have to.
We collect proof of the bad faith behavior and how it hurt you.
We negotiate for a fair amount that matches your losses.
We go to court if the insurer won’t act reasonably.
We seek to recover legal fees under California law.

Bentley & More LLP knows California insurance law inside and out. We’ve helped policyholders in neighborhoods like Eastbluff and throughout Orange County resolve disputes with major insurance carriers. Our personal injury attorneys focus on results and treat each case with the care it deserves.

We don’t charge legal fees upfront. Instead, we only get paid when you recover money. Our team keeps you informed every step of the way and gives your case the personal attention it deserves.

Frequently Asked Questions About Insurance Bad Faith

Can I sue my own insurance company for bad faith?

Yes. If your insurance company treats your claim unfairly, you can bring a lawsuit under California law.

What’s the difference between a claim denial and bad faith?

A simple denial might follow the rules. Bad faith means the denial had no proper reason or violated the company’s duty.

Do I need a lawyer for an insurance bad faith case?

You’re not required to have one, but insurers have legal teams. Having an attorney gives you a much better chance at recovering what you’re owed.

How much does it cost to hire a bad faith attorney?

Many lawyers take these cases on contingency. That means you only pay if you recover money. In some cases, the insurer may also have to cover your attorney fees.

Contact Our Newport Beach Insurance Claim Attorneys for Help

Insurance companies shouldn’t be allowed to delay or deny your valid claims. If you’re dealing with a bad faith issue, call Bentley & More LLP. Our Newport Beach insurance and bad faith lawyers can review your case, explain your rights, and help you take action.

We offer a free consultation and only take a fee if there’s a recovery in your case. Don’t wait too long. Deadlines apply, and waiting could limit your ability to act. Call us now at (949) 870-3800 to protect yourself and hold your insurance company accountable.

Client Testimonial

“I’ve had the pleasure of working with Bentley & More for the past 5-6 years. Their drive and compassion to earn great results for their clients is obvious to everyone who works with them.
I’m grateful for the opportunity to partner with the firm to help serve their clients.”

– Nicole S. ⭐⭐⭐⭐⭐

Bentley & More LLP – Newport Beach Office

4931 Birch Street
Newport Beach, CA 92660

Phone: (949) 870-3800

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