How Long Can an Insurance Company Delay a Claim in California? | Property Damage

Understand California’s timelines: when insurers must respond, when delays may trigger badfaith liability, and how to protect your property damage claim after wildfires or storms.

By Jasmine Daya, Esq.

One of the most asked questions from homeowners that have filed a property damage claim in Southern California is: “How long can my insurer sit on my claim before I lose rights?” The answer is: it depends, but it’s critical to act proactively. Here’s what you need to know.

What the law says about claim response time

Unlike some states, California law does not set a fixed number of days by which insurers must pay every claim. Instead, insurers must act reasonably and in good faith, without “vexatious or unreasonable” delay. If they fail, you may have a cause of action for badfaith.

Typical practical timelines and delays

• A straightforward claim (e.g., fire damage + clear evidence) should be reviewed within 3060 days in most cases.

• If the insurer requests additional documentation or expert evaluation, reasonable extensions apply but these must be justified.

• If you’ve waited 90120 days without meaningful progress, this may signal a problem.

When delay becomes a badfaith trigger

If the insurer:

• Repeatedly asks for the same information without explanation

• Unduly postpones inspection or valuation

• Lowballs the offer with no clear justification … then you may transition from a “simple delay” to a bad faith dispute. At this point you should engage legal counsel.

When delay becomes a badfaith trigger

If the insurer:

• Repeatedly asks for the same information without explanation

• Unduly postpones inspection or valuation

• Lowballs the offer with no clear justification

  
  

  … then you may transition from a “simple delay” to a badfaith dispute. At this point you should engage legal counsel.

Steps you must take while waiting

1. Maintain documentation: emails, letters, phone logs.

2. Preserve evidence: damage photos, video, repair estimates.

3. Set your own timeline: send a “reservation of rights” letter if you are still under repair.

4. Request an explanation in writing of the delay or denial.

5. Consult an attorney if you hit 90 days with no meaningful movement.

Key takeaway

You cannot afford to “let time run.” In the wake of major propertydamage events in SoCal, insurers sometimes use delay as a tactic to pressure you into accepting less. If you’re experiencing a protracted delay, it may be time to escalate.

Contact Geraci LLP

If your insurer has delayed your claim for several months or you’re simply getting no meaningful response, let us evaluate your case free of charge. Time is of the essence.