Oct 21

New wood framing for a home being rebuilt on a Los Angeles hillside lot

Fire Insurance Claims in Los Angeles After the 2025 Wildfires: Deadlines That Matter

By Ivetta Avanesov | Homeowners Insurance Claims

For homeowners affected by the January 2025 wildfires in Los Angeles County, the deadlines that matter most involve suing an insurer, collecting replacement cost benefits and receiving additional living expenses. These time limits can become especially pressing when you’re still disputing an estimate or waiting for rebuilding to begin.

Some deadlines may approach in early 2027, but each period has its own starting point, and your policy and claim history can affect the dates. A Los Angeles fire insurance claim lawyer at Viciti Law can help you understand which deadlines apply and what steps to take while your claim remains unresolved.

How long do you have to sue your insurer after a fire?

Under Insurance Code section 2071, a fire policy’s suit clause allows at least 12 months to sue. For a loss tied to a declared emergency, the period is 24 months from the start of the loss. That longer period generally covers January 2025 wildfire losses.

The clock does not always run straight through. In Prudential-LMI v. Superior Court (1990), the California Supreme Court addressed that question. It held that the suit period pauses from your report of the loss until the insurer’s written denial.

So for a loss that began in January 2025, 24 months on its own would end in January 2027. The pause can push that date later, and your policy may allow more time. Still, do not count on either without checking. Unless a lawyer represents you, the insurer must warn you in writing at least 60 days before a time limit expires.

How long do you have to collect replacement cost and additional living expenses?

Calendar and folder of insurance papers on a kitchen table

After a declared emergency, you have at least 36 months to collect full replacement cost. That period starts with the first actual cash value payment, not the date of the fire. Additional living expense coverage must run at least 24 months from the start of the loss. Both periods can grow longer in some cases.

The replacement cost rule is in Insurance Code section 2051.5. Until you rebuild, the insurer generally pays actual cash value, which subtracts depreciation. You then claim the difference as you rebuild, up to your limits. If delays beyond your control slow you down, the insurer must grant six-month extensions for good cause.

Living expense coverage pays the extra cost of living away from home, such as temporary rent. Under Insurance Code section 2060, the insurer must grant an extension of up to 12 additional months when you act in good faith and with reasonable diligence but encounter rebuilding delays beyond your control. Further six-month extensions are available for good cause. However, the dollar limit does not grow with the extra time, so track your spending.

For a home lost in January 2025, the 24-month minimum reaches January 2027. So ask about an extension early if rebuilding has stalled. After a total loss, you can also ask for an advance of at least four months of living expenses.

Does an insurer have to pay part of your contents without a full inventory?

Yes, in many cases. The rule applies after a total loss of a furnished primary home in a declared emergency. Your insurer must then offer a contents payment without an itemized inventory. The amount is a set share of a policy limit, up to a cap. You can still claim more later with an inventory, up to your contents limit.

The share and the cap changed on January 1, 2026. The Department of Insurance says to check the rules in effect on the date of the fire. So confirm which version covers your claim. Its wildfire resources page links to its notice of these rules.

If you do file an inventory, the insurer cannot insist on its own form when yours has the same information. It must also accept groupings, such as clothing or books, when listing each item is impractical.

What should you do if the insurer delays, underpays or denies the claim?

Hands writing notes in a claim diary next to a phone

Start by asking for the reasons in writing and keeping a record of every contact. California’s Fair Claims Settlement Practices Regulations require an insurer to acknowledge a claim within 15 calendar days. It must then accept or deny the claim in writing within 40 days of proof of claim.

Practical steps help:

Keep a claim diary of every call and email, with dates and names
Ask the adjuster to point to the policy language behind any denial
Request a free copy of your full policy, due within 30 calendar days
Expect a status letter every 30 days if the insurer needs more time
Call the Department of Insurance hotline at 1-800-927-4357 or file a complaint

However, a complaint is not a lawsuit, so keep your deadline to sue in view.

When should you talk to a Los Angeles fire insurance claim lawyer?

Talk to a Los Angeles fire insurance claim lawyer when a denial, delay or offer does not match your losses. It also makes sense to call when a deadline is a few months away and the claim is still open. Early advice can protect your dates and your records.

Warning signs include:

A partial denial that does not point to policy language
A contractor’s estimate far above the insurer’s figure
Living expense benefits about to stop while rebuilding has stalled
A file that restarts each time a new adjuster takes over

These problems may point to bad faith, so it helps to know what counts as bad faith in California. Viciti Law also handles insurance bad faith claims. A Los Angeles homeowners insurance lawyer at the firm can review your policy, estimates and letters.

Frequently Asked Questions

Can I rebuild or buy somewhere else and keep my replacement cost benefits?

Yes, after a total loss. Insurance Code section 2051.5 says a policy cannot limit or deny replacement cost because you rebuild or buy elsewhere. The same goes for building code upgrade benefits. The amount cannot exceed what it would cost to rebuild at the original site. Also, the insurer cannot deduct the value of the land at the new location.

Can my insurer cancel or refuse to renew after the fires?

It depends. After the January 2025 wildfires, a one-year moratorium applied to homes in or next to the fire areas. It stopped insurers from dropping those homes based only on location, and that year has now passed. Still, after a total loss, the insurer generally must offer to renew for at least the next two annual renewals.

What if my contractor’s estimate is higher than the insurer’s?

Ask the insurer to explain its estimate in writing, and send yours with a request to reconsider. The Department of Insurance notes that insurer estimates can miss demand surge, the price jump after a major disaster. If the dispute is only about the amount, appraisal may help. In a declared disaster, either side can request it, but neither can force it.

Should I hire a public adjuster or a fire insurance claim lawyer?

It depends on the problem. Public adjusters hold a Department of Insurance license and often charge a percentage of the settlement. A lawyer can advise you on your rights and deadlines, address bad faith, and file a lawsuit if needed. If you hire a public adjuster, check the license with the Department first.

Talk to Viciti Law About Your Los Angeles Fire Insurance Claim

If your wildfire claim has stalled, a Los Angeles fire insurance claim lawyer at Viciti Law can review it with you. The firm offers a free consultation from its office in Sherman Oaks.

Call (310) 919-5011 or contact Viciti Law to set a time. The team speaks Spanish and Russian and takes each and every case personally.

Book Free Consultation

Past results do not guarantee a similar outcome. This article provides general information about California law and is not legal advice. Reading it does not create an attorney-client relationship. Attorney Advertising.

Oct 14

Homeowner reviewing a bad faith insurance claim denial letter in California

What Counts as a Bad Faith Insurance Claim in California?

By Ivetta Avanesov | Commercial Property Insurance, Homeowners Insurance Claims, Insurance Bad Faith

A bad faith insurance claim arises when your own insurer denies, delays, or underpays a valid claim without a proper reason. In California, every policy carries a duty of good faith and fair dealing. You can hold the company to it. For homeowners and business owners, bad faith often surfaces after a fire, water, or other property loss. This article covers what counts as insurance bad faith, how to prove it, and your deadlines.

What is a bad faith insurance claim?

A bad faith insurance claim is a claim against your own insurer for breaking its duty to treat you fairly. Every California insurance policy includes an implied promise of good faith and fair dealing. When the company withholds benefits it owes you without proper cause, it breaks that promise.

However, a bad faith claim differs from an ordinary policy dispute. In a routine dispute, you and the insurer disagree in good faith about coverage or value. Bad faith goes further, because it involves unreasonable conduct by the company. That difference is what can open the door to remedies beyond the policy benefits. Bad faith insurance claims typically grow out of a denial, a long delay, or an offer that does not match the damage.

What counts as bad faith in California?

Bad faith in California means withholding benefits unreasonably or without proper cause. California Insurance Code section 790.03 lists unfair claims practices. The Fair Claims Settlement Practices Regulations set deadlines insurers must meet.

Common signs of bad faith include:

Denial of a valid claim without a reasonable basis
Delays with no written explanation or status updates
Lowball offers far below documented repair or replacement costs
Failure to do a real investigation or inspection
Misstatements about what the policy covers
Silence on evidence that supports the claim

For example, under Insurance Code section 790.03, insurers may not misrepresent policy provisions, ignore claim communications, or fail to explain the basis for a denial. Only the Insurance Commissioner can enforce the statute. In Moradi-Shalal v. Fireman’s Fund (1988), the California Supreme Court held that it does not create a private right to sue. Instead, a policyholder’s lawsuit rests on the implied promise of good faith in the policy itself.

The Fair Claims Settlement Practices Regulations add firm deadlines. An insurer must acknowledge a claim within 15 calendar days. It must then accept or deny it within 40 calendar days of proof of claim. Also, a denial must come in writing and explain every reason behind it.

How do you prove insurance bad faith?

Claim documents gathered to prove insurance bad faith

To prove insurance bad faith, you generally show two things, as California courts explained in Love v. Fire Insurance Exchange (1990). First, benefits due under the policy were withheld. Second, the insurer’s reason for withholding them was unreasonable or without proper cause.

An honest disagreement is not enough. In Wilson v. 21st Century Insurance (2007), the California Supreme Court addressed this point. A genuine dispute over coverage or value defeats bad faith, but only when the insurer holds its position in good faith and on reasonable grounds. In addition, the court held that an insurer may not ignore evidence that supports the claim or deny it without fully investigating.

Next, gather evidence. Helpful proof includes:

The denial letter and every written reason the insurer gave
A complete copy of your policy, endorsements, and declarations page
Photos, video, and repair estimates for the property damage
A log of calls, emails, and dates with the adjuster
Outside reports that challenge the insurer’s findings

What can you recover in a bad faith insurance claim?

In a successful bad faith insurance claim, a policyholder may recover the policy benefits owed, plus other losses the insurer’s conduct caused. However, every case turns on its own facts, so no outcome is certain.

Depending on the facts, damages may include:

Policy benefits the insurer wrongfully withheld
Economic losses caused by the denial or delay
Damages for emotional distress caused by the insurer’s conduct, as recognized in Gruenberg v. Aetna (1973)
Attorney’s fees spent to recover policy benefits, under Brandt v. Superior Court (1985)
Punitive damages, but only with clear and convincing evidence of oppression, fraud, or malice under Civil Code section 3294

How long do you have to file a bad faith insurance claim in California?

The deadline to file a bad faith insurance claim depends on what you are seeking, because two deadlines can apply. First, any claim for policy benefits, even one framed as bad faith, falls under the suit clause in your policy. For fire coverage, Insurance Code section 2071 requires at least 12 months from the start of the loss. If the loss is related to a declared state of emergency, the minimum is 24 months.

That clock pauses from the time you report the loss until the insurer denies the claim in writing, under Prudential-LMI v. Superior Court (1990). Second, a bad faith claim for damages beyond the policy benefits generally carries a two-year deadline under Code of Civil Procedure section 339(1). Because the deadlines overlap and the dates are often disputed, confirm yours with a lawyer early.

When should you talk to a lawyer?

Homeowner looking at water damage inside an opened wall after a pipe leak

Talk to a lawyer as soon as a denial, delay, or low offer does not match your policy or the evidence. Early advice protects your deadlines and keeps your record complete. Still, not every dispute needs an attorney, especially when the insurer is still adjusting the claim fairly and on time.

Based in Sherman Oaks, Viciti Law represents policyholders across Southern California. A bad faith insurance attorney at the firm reviews your policy, claim file, and the insurer’s reasons before you decide what to do.

The firm also handles homeowners insurance claims and commercial property insurance claims, including fire, water, and business interruption losses. You speak with the same team from the first call, have direct access to your attorney at every stage, and can talk with the firm in Spanish or Russian.

Frequently asked questions

How do you sue an insurance company over a bad faith claim?

To sue an insurance company for bad faith, you file a civil lawsuit for breach of the implied covenant of good faith and fair dealing. That claim usually travels with a breach of contract claim. Before filing, gather the policy, the denial letter, and your claim records, then confirm which deadline applies. A lawyer can send a demand letter first, giving the insurer a final chance to pay before a suit.

Can I file a bad faith insurance claim against my own insurer?

Yes. In California, you bring a bad faith claim against your own insurer. Homeowners and business owners can bring one when their property insurer unreasonably denies, delays, or underpays a covered loss. The duty of good faith runs from the insurer to you as its insured.

Is a lowball offer insurance bad faith?

It can be. An offer far below documented repair or replacement costs is a warning sign. It is especially telling when the insurer will not explain how it reached the number. California rules require a reasonable explanation for any compromise offer. Still, a low offer based on a genuine, reasonable dispute over value is not bad faith on its own.

What is bad faith insurance in simple terms?

Bad faith insurance describes an insurer that puts its own interests ahead of yours when handling your claim. For example, it denies a valid claim, stalls without explanation, or offers far less than the loss is worth. California courts judge bad faith by whether the insurer acted reasonably. Getting less than you hoped for is not enough on its own.

Can I report bad faith to the California Department of Insurance?

Yes. You can file a complaint with the California Department of Insurance online or call its consumer hotline at 1-800-927-4357. In addition, the department enforces Insurance Code section 790.03. However, a complaint is not a lawsuit, so keep your filing deadline in view.

How much does it cost to talk to Viciti Law?

Consultations are free. The team speaks English, Spanish, and Russian. Bring your policy, your denial letter, and any photos or estimates.

Talk to Viciti Law about a bad faith insurance claim

If you believe you have a bad faith insurance claim, contact Viciti Law for a free consultation and a review of your denial letter.