A previous post on this blog discussed the elements of a claim of bad faith. That post mentioned that a bad faith claim can help homeowners in the Los Angeles area, as well as those who own houses as investment property, fight back against an insurance company that, for whatever reason, is not being fair or reasonable in handling the owner's loss or damage to their property.
Insurance companies have an obligation to their clients, whether it is to pay the insurance holder's legitimate claim or to investigate and process a claim within a reasonable time period. This is because they often have more resources than the policyholder-they have more financial resources, greater negotiating power and more expertise. These same factors also put the company in the driving seat, which is why courts often find that companies should proceed with an obligation of good faith and fair dealing.