Choosing the Right Dispute Resolution Path
Insurance disputes come in different forms, and the best resolution method depends on what you are disputing. Are you challenging a complete denial of coverage? Disputing the amount offered for a covered loss? Or accusing the insurer of bad faith conduct? Each situation calls for a different approach.
I recommend starting with less adversarial options and escalating only if necessary. Many disputes resolve through persistent communication and proper documentation without ever reaching formal proceedings. But when you need to escalate, understanding your options is critical.
Comparison: Which Option Is Right for You?
| Option | Best For | Resolves Coverage? | Binding? | Typical Cost | Timeline |
|---|---|---|---|---|---|
| Appraisal | Valuation disputes only | No | Yes | $3,000 - $10,000 | 2-4 months |
| Arbitration | Coverage and valuation | Yes | Usually yes | $5,000 - $25,000 | 3-6 months |
| Mediation | Any dispute where both want resolution | Yes | No | $1,500 - $5,000 | 1-2 months |
| DOI Complaint | Regulatory violations | Indirectly | No | Free | 2-6 months |
| Litigation | Coverage denial, bad faith | Yes | Yes | $10,000 - $100,000+ | 1-3 years |
California-Specific Options
California policyholders have additional protections and options not available in many other states:
- Department of Insurance: The California DOI actively investigates consumer complaints and can impose significant penalties on insurers who violate regulations. Filing a complaint often gets senior attention on your claim.
- Fair Claims Settlement Practices: California Code of Regulations Title 10, Section 2695.1 et seq. imposes strict requirements on claim handling. Violations can support both regulatory complaints and bad faith claims.
- Brandt Fees: Under California's Brandt rule, if you win a bad faith case, you can recover the attorney fees you spent to obtain the policy benefits as part of your damages.
- Genuine Dispute Doctrine: California insurers can defend against bad faith by showing there was a genuine dispute over coverage or amount. But this defense does not apply when the insurer fails to properly investigate.
Read our California DOI Complaint Guide for step-by-step instructions on filing a complaint with the California Department of Insurance.
Need Help Resolving Your Insurance Dispute?
I'm Sergei Tokmakov, a California attorney who helps policyholders fight back against unfair claim denials. From demand letters to litigation, I can help you get the coverage you paid for.