Legal Question in Insurance Law in California

assignment of claim for damages

I have a assignment of claim for damages for property I bought. The damages occured due to some wash construction behind the property. The sellers disclosed the damages and that the repairs would be done by the responsible parties. The insurance company for the construction company now wants more documents regarding the purchase of the house. They have a copy of the assignment and I don't believe they need any other documents. I think they are trying not to pay the claim. Could this be bad faith?


Asked on 1/13/03, 1:55 pm

2 Answers from Attorneys
Jeffrey D. Olster Russakow, Ryan & Johnson

Re: assignment of claim for damages

It could be bad faith, but much more information regarding the factual circumstances and the policy language is required to make that determination.

It seems like the insurance company is entitled to proof of ownership of the house. Is there a downside to providing the company with the documents that it wants?

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Answered on 1/13/03, 7:09 pm
Steven Murray Steven W. Murray, APC

Re: assignment of claim for damages

From your description it appears you are not the insured but are a claimant against the insured construction company. In this case there is no bad faith under California law - the implied covenant of good faith runs ONLY to the insured as it arises from the policy between the two. You should contact an attorney to pursue your claim as the insurer is probably not going to cooperate as you thought.

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Answered on 1/14/03, 3:34 pm


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