Kabateck LLP founding partner Brian Kabateck and managing partner Shant Karnikian have co-authored an op-ed in the Daily Journal examining insurance bad faith tactics affecting wildfire survivors.
“Burned Twice: 5 Signs of Bad Faith in Total-Loss Wildfire Claims” addresses a common misconception—that total-loss claims are straightforward because the home is gone and policy limits simply get paid. In practice, insurers frequently pay obvious benefits early, creating the impression the claim is resolved, while critical additional coverages are never explained, never applied, or quietly minimized.
The article identifies five warning signs of bad faith: failure to pay extended replacement costs; failure to pay full benefits when purchasing a replacement home; failure to pay code upgrade coverages; failure to pay true alternative living expenses; and failure to acknowledge other coverages like debris removal and landscaping. Kabateck and Karnikian note that across carriers, the tactics are consistent—wearing insureds down through delays, late reports riddled with errors, and shifting the burden to policyholders to prove their own claims.
This is the first in a two-part series. Part 2 will address bad faith patterns unique to partial-loss and smoke-damage claims.