Legal Question in Insurance Law in California

Company refuses to pay for stolen property

One of 2 storage units we had rented for our upcoming move was broken into. A police report was made. We had taken out insurance for the units, but the insurance company now refuses to settle because the thieves had taken the lock with them and we therefore ''could not prove that the unit had been broken into.'' Please note that 3 other units had been broken into at the same time (our neighbors' lock had been cut but left on the unit...), the police noted that the wire fence had been trampled and called this the ingress... At the time of the burglary, we had discontinued our house insurance because our house had been sold, so that we thought ourselves lucky to have taken insurance on the contents of the units. What are our options to get some of the money we feel the insurance company rightly owes us? Thanks!


Asked on 7/18/05, 4:59 pm

2 Answers from Attorneys
Steven Murray Steven W. Murray, APC

Re: Company refuses to pay for stolen property

What did the storage company say? Did they report any damage to their insurer for the fence, etc? Your statement that you had locks and is proof, the insurer just wants more proof.

Get copies of the police reports, the reports of the storage co. (if possible) and write the insurer demanding a written explanation of the results of its investigation showing that no theft occurred. It probably won't do that, and you will have to sue - small claims is up to $5K, and you and your wife can each do this so $10K might be recovered. Otherwise, contact a lawyer - the actual language of your policy is very, very important here.

Read more
Answered on 7/21/05, 2:41 pm
Aaron Davis Law Office of Aaron M. Davis

Re: Company refuses to pay for stolen property

The specific language of the policy in relation to the insurer's duties thereunder are the key here. Presumably, they provide coverage for theft, and, if indeed other units were broken into at the same time, and the evidence is available as you suggest, it sounds as though they are being unreasonable in failing to pay the claim. You may have a suit for bad faith. If you would like to discuss the specifics of the policy and your claim, please contact me for a free consultation.

Read more
Answered on 7/21/05, 3:41 pm


Related Questions & Answers

More Insurance Law questions and answers in California