Choose An Experienced Property Damage Insurance Attorney
Callahan & Blaine has earned a reputation as one of the premier insurance litigation firms in the United States. We have recovered more than $1 billion in policyholder benefits for our corporate and individual clients during the last 18 years. Regardless of the complexity of your insurance case, our denied property damage insurance attorneys in Orange County have the skill to protect your rights in insurance litigation. Contact us today! Attorney Edward Susolik, the chair of our Insurance Law Department, is an Adjunct Professor at the University of Southern California School of Law, teaches classes on insurance law and serves as an editor on the Rutter Group Guide to Insurance Litigation, the leading treatise on insurance law in California. Attorney Dan Callahan is recognized as one of America’s preeminent trial lawyers on insurance coverage issues.How Can A Property Damage Insurance Lawyer in Orange County, CA Help?
The Orange County insurance litigation lawyers at Callahan & Blaine represent individuals and businesses with claims involving residential and commercial property in California. We have specialized property damage and denied homeowners insurance lawyers that have handled cases for fires, floods, earthquakes, landslides, and issues such as toxic mold and construction defects. Insurance companies are notorious for denying valid claims in the hope that the policyholder will not contest the denial. You can fight back against insurance company tactics with the help of our experienced attorneys. We assist policyholders with insurance matters such as:- Denied claims
- Undervalued claims
- Delayed payments
- Threats of cancellation
Contact Us To Speak With A Property Damage Insurance Attorney in Orange County, CA
We will investigate the damage to your property and review your policy to determine whether the claim has been interpreted fairly. If negotiations with the insurance company are not sufficient, we can take the case to trial. We are a law firm of experienced Orange County property damage insurance lawyers who have won record-setting verdicts and settlements. Contact Callahan & Blaine in Santa Ana to learn how we may help you get the coverage and/or damages you deserve.Frequently Asked Questions
What Is Property Damage Insurance Litigation?
Property damage insurance litigation involves legal action against insurance companies that wrongfully deny, delay, or underpay property damage claims. This specialized practice area focuses on holding insurers accountable when they breach their contractual obligations to policyholders who’ve suffered property damage from fires, water leaks, storms, vandalism, or other covered events. Property damage insurance lawyers handle cases where insurers dispute coverage, undervalue damages, misapply policy exclusions, or engage in bad faith tactics to avoid paying legitimate claims. At Callahan & Blaine, our property damage insurance litigation attorneys have recovered millions for California homeowners and businesses whose insurance companies refused to honor valid property damage claims. We represent clients in disputes involving homeowners insurance, commercial property insurance, auto physical damage coverage, and landlord policies. Whether your insurer denied your fire damage claim, underpaid your water damage losses, or delayed payment causing additional harm, our attorneys fight to recover the full compensation you’re entitled to under your insurance policy.
How Do I Know If My Property Damage Claim Was Wrongfully Denied?
Your property damage claim may have been wrongfully denied if the insurance company failed to conduct a proper investigation, misinterpreted policy language to avoid coverage, relied on biased or unqualified inspectors, denied coverage without explaining specific policy exclusions, or rejected your claim without reviewing all evidence you provided. Common signs of wrongful denial include the insurer claiming damage resulted from “wear and tear” without proof, asserting damage occurred before policy inception without investigation, denying water damage claims by mischaracterizing the source, or citing exclusions that don’t actually apply to your situation. If your denial letter is vague, lacks specific policy provisions, or contradicts expert opinions, the denial may be improper. California law requires insurers to thoroughly investigate claims, communicate clearly, and make reasonable coverage decisions based on policy terms and available evidence. Our property damage insurance attorneys review denial letters, examine policy language, and consult with experts to determine if your denial was justified. We’ve successfully overturned thousands of improper denials and recovered full damages plus bad faith penalties for wronged policyholders.
What Types of Property Damage Do Insurance Companies Most Often Dispute?
Insurance companies most frequently dispute water damage claims by arguing the damage resulted from long-term leaks rather than sudden pipe bursts, mold damage claims citing policy exclusions or claiming inadequate mitigation, fire damage claims involving questions about origin or cause, roof damage claims asserting damage from wear and tear rather than covered storms, foundation damage claims alleging pre-existing conditions or earth movement exclusions, and smoke damage claims undervaluing cleanup and restoration costs. Insurers also commonly dispute business interruption claims related to property damage, additional living expense claims for displaced homeowners, code upgrade costs required during repairs, and diminished property value after repairs. Vehicle property damage disputes often involve total loss valuations, diminished value claims, and repair versus replace decisions. Insurance companies employ tactics like hiring biased adjusters, using lowball valuation software, requesting endless documentation, and pressuring claimants to accept quick settlements below actual damages. Our property damage insurance litigation team knows these tactics and fights back with thorough documentation, independent experts, and aggressive advocacy to ensure you receive fair compensation for all your property damage losses.
Can I Sue My Insurance Company for Underpaying My Property Damage Claim?
Yes, you can sue your insurance company for underpaying your property damage claim if they failed to conduct a reasonable investigation, ignored evidence of higher damages, relied on biased or inadequate estimates, or otherwise breached their duty of good faith and fair dealing. Underpayment cases often involve insurers using depreciation improperly, refusing to pay replacement cost value, undervaluing damaged property, ignoring comparable sales data, or failing to account for all damaged items or areas. California law requires insurers to pay the full amount of covered losses, not just the minimum they can get away with. If your property damage settlement seems too low, obtain independent repair estimates, vehicle valuations, or property appraisals showing the insurer’s offer is inadequate. You can demand appraisal under your policy, file a Department of Insurance complaint, or pursue litigation for breach of contract and bad faith. Successful underpayment claims recover the difference between what you were paid and actual damages, plus consequential damages from the underpayment, and potentially punitive damages if the insurer acted in bad faith. Our attorneys frequently handle property damage underpayment cases and have extensive experience proving true replacement costs and fair market values.
What Is the Difference Between ACV and RCV for Property Damage Claims?
Actual Cash Value (ACV) pays for property damage minus depreciation based on the item’s age and condition, while Replacement Cost Value (RCV) pays the full cost to repair or replace damaged property with new materials of similar quality without depreciation deduction. Most property insurance policies initially pay ACV, then reimburse the remaining RCV amount (depreciation) after you complete repairs and submit proof. For example, if your 10-year-old roof costs $20,000 to replace but has 50% depreciation, ACV payment would be $10,000 initially, with the additional $10,000 paid after replacement. Insurance companies sometimes wrongfully refuse to pay RCV recoverable depreciation, claim repairs weren’t completed to policy standards, or dispute whether items qualify for RCV coverage. Some policies only provide ACV coverage for certain items like roofs over 10 years old. Understanding whether you have ACV or RCV coverage is crucial for property damage claims—RCV policies are more valuable but often cost more in premiums. If your insurer refuses to pay RCV depreciation after you’ve completed repairs, or disputes the depreciation amount, contact our property damage insurance attorneys. We enforce policyholders’ rights to full RCV payments and challenge insurers who improperly withhold recoverable depreciation.
How Long Does a Property Damage Insurance Lawsuit Take?
Property damage insurance lawsuits typically take 12-24 months from filing to resolution, though cases can settle earlier through negotiation or take longer if complex or contested. After filing suit, expect 6-9 months of discovery where both sides exchange documents, take depositions, and hire experts to evaluate damages and coverage. Many property damage cases settle during mediation, usually occurring 9-12 months after filing. If settlement fails, trial preparation requires another 3-6 months, and trials last several days to weeks depending on case complexity. Insurance companies often settle before trial once they realize you have strong evidence and committed legal representation. However, insurers with bad track records sometimes force cases to trial betting on favorable juries. Appeals can extend resolution another 1-2 years, though property damage appeals are less common than other case types. Several factors affect timeline including court scheduling, expert availability, insurance company tactics, and case complexity. Our property damage insurance litigation attorneys work efficiently to move cases forward while thoroughly preparing for trial, keeping clients informed throughout the process, and pursuing the fastest resolution that achieves full compensation for all property damage losses and related harms.
What Damages Can I Recover in a Property Damage Insurance Lawsuit?
In property damage insurance lawsuits, you can recover the full amount of your property damage claim that the insurer wrongfully denied or underpaid, including repair costs, replacement costs, or fair market value for total losses. You can also recover consequential damages resulting from the insurer’s conduct such as additional living expenses during repairs, lost rental income for investment properties, storage costs for personal belongings, emergency repair expenses, and costs to prevent further damage. If the insurer acted in bad faith, California law allows recovery of emotional distress damages, attorney’s fees, and punitive damages designed to punish egregious insurer misconduct. You may also recover pre-judgment interest from the date payment should have been made, and post-judgment interest until the insurer pays the judgment. Bad faith cases can result in damages far exceeding policy limits—punitive damages can be several times the underlying claim amount. For business property damage, recoverable damages include business interruption losses, lost profits, and extra expenses to maintain operations. Our property damage attorneys thoroughly evaluate all potential damages and fight for maximum recovery including all economic losses, bad faith penalties, and costs incurred due to the insurer’s wrongful claim handling.
Should I Accept My Insurance Company's Property Damage Settlement Offer?
Do not accept your insurance company’s first settlement offer for property damage without contacting an attorney, especially if the amount seems low or the insurer pressures you to settle quickly. Insurance companies routinely make lowball initial offers hoping policyholders will accept without understanding full claim value. Once you accept a settlement and sign a release, you typically cannot reopen the claim even if you later discover additional damage or realize the payment was inadequate. Before accepting any settlement, obtain independent repair estimates or property valuations to verify the offer covers all damages. Review your policy to understand coverage limits and deductibles. Consider whether the offer includes all damaged items, code upgrade costs, and loss of use expenses. If repairs reveal hidden damage, most settlements prevent additional recovery. Insurance companies exploit policyholders’ financial stress by offering quick but inadequate settlements. Statistics show represented claimants receive 40-60% more in settlements than unrepresented policyholders who accept initial offers.
What Is Bad Faith in Property Damage Insurance Claims?
Bad faith occurs when insurance companies unreasonably or dishonestly handle property damage claims in violation of their duty to act in good faith and fair dealing with policyholders. Property damage bad faith includes denying valid claims without reasonable investigation, undervaluing damages despite evidence of higher costs, delaying claim processing without justification, misrepresenting policy coverage to deny claims, refusing to pay undisputed portions of claims, failing to communicate claim status or coverage decisions, demanding unreasonable documentation, using biased adjusters or experts, and pressuring policyholders to accept inadequate settlements. California law requires insurers to thoroughly investigate claims, promptly pay valid claims, and treat policyholders fairly throughout the claims process. Bad faith creates additional liability beyond contract damages—policyholders can recover emotional distress damages, attorney’s fees, and punitive damages that can exceed policy limits by 10-20 times in severe cases. To prove bad faith, you must show your claim was valid and the insurer’s conduct was unreasonable. Our property damage insurance litigation attorneys document every instance of bad faith conduct, from delayed responses to biased inspections, building compelling cases that hold insurance companies accountable for unfair claim practices.
How Do I File a Property Damage Insurance Lawsuit?
To file a property damage insurance lawsuit, first exhaust your policy’s internal dispute resolution procedures including demanding appraisal if applicable and filing formal appeals of claim denials. Contact a property damage insurance attorney who will review your policy, claim file, denial letters, and damage evidence to evaluate your case. Your attorney will send a demand letter to the insurance company explaining why the denial or underpayment was improper and demanding full payment. If the insurer refuses reasonable settlement, your attorney files a complaint in superior court alleging breach of contract and potentially bad faith. The complaint must be filed within California’s statute of limitations—typically four years for breach of contract and two years for bad faith from the date of denial or underpayment. Your attorney handles all legal procedures including discovery, depositions, expert witness retention, and settlement negotiations. Most property damage insurance cases settle before trial, but your attorney must be prepared to try the case if necessary. At Callahan & Blaine, we handle the entire litigation process while keeping clients informed and involved in major decisions.
