The recent wildfires in Southern California and natural disasters elsewhere in the country have left thousands of people grappling with enormous loss — and the complex insurance claims process that follows.

Insurance companies owe a duty of good faith and fair dealing with policyholders. Unfortunately, some carriers are notorious for using unfair, manipulative and deceptive practices to delay, deny or minimize payouts of valid claims through unethical or illegal means. This is known as insurance bad faith — and it is crucial to be on the lookout for these tactics as you begin to rebuild your life.

While I do not recommend immediately hiring an attorney, under some circumstances — such as when bad-faith tactics are suspected — there is no choice. This is where lawyers experienced in bad-faith insurance practices are worth their weight in gold.

It never hurts to schedule a consultation, even at the very beginning, as a lawyer can help clarify your insurance coverages and be ready to help if it turns out that your carrier isn’t playing by the rules.

But as I stated in an earlier column, How to Deal With Property Insurance Claims After Wildfires, unless your carrier has flat out denied the loss or you suspect bad faith, allow the claims process to proceed and do not rush to retain an attorney, as the expense might not yet be justifiable.

I spoke with a friend of this column, Los Angeles attorney Shant Karnikian, managing partner and trial attorney with one of our country’s leading bad-faith law firms, Kabateck LLP. He addressed the following important points for how to proceed with an insurance claim and avoid common pitfalls.

Get a copy of your policy.

Whatever renters or homeowners insurance you have, contact your carrier to obtain a copy of the complete policy. Review it in detail to ensure you understand your coverage limits, deductibles and specific provisions related to the damage. Don’t forget to check other relevant policies, such as auto insurance or umbrella insurance.

Document everything.

When you can visit your home, take photos and videos of all the damage. You may need professional help, such as appraisers and structural engineers, to assess the full extent of the damage. An attorney can help connect you with the proper experts if necessary, but don’t be in a hurry to incur avoidable expenses. Allow the claims adjusters to do their work. Businesses should document all business losses and interruptions related to the incident.

Save all receipts.

You’ll need proof of whatever expenses you incur related to the disaster.

Keep a diary.

Take detailed notes and save records of every interaction with your insurer — letters, emails, calls, phone numbers, dates and times, names of the representatives you’ve spoken with and so on.

Prioritize your health.

Don’t return to your property until authorities have said it’s safe to do so.

Secure affordable temporary housing.

Most homeowners/renters policies cover a period of additional living expenses (ALE) for housing while you are displaced.

Follow proof of loss requirements and meet all deadlines.

Many insurance policies have strict policies and timeframes for reporting damage and filing claims.

Stay on top of your insurance company.

After filing, follow up on a regular basis to ensure your claim is being processed and that you have completed the requirements and provided all necessary information.

Don’t jump at your carrier’s first offer.

Do not feel pressured to accept an initial assessment or lowball offer, especially if you have not obtained a second opinion on valuation. Do not sign a release when accepting periodic payments.

Don’t rush into contracts.

Don’t sign contracts for repairs, rebuilds, clean-up/debris removal and so forth before you know the status of your claim. Be on the lookout for scammers targeting disaster victims.

Inquire about resources.

You may qualify for assistance through FEMA and/or the Small Business Administration (SBA).

Consulting with an attorney

Seeking advice early in the process from an attorney experienced with property losses — before filing your claim — is advisable, but ethical lawyers will not rush to sign you up unless it becomes clear that you are being dealt with improperly.

If you do encounter bad-faith tactics, a lawyer can advocate for you, analyze and address every aspect of your claim, help you build a strong case, identify overlooked benefits, navigate disputes with your insurer, ensure your rights are protected and help maximize your claim — but only when it is necessary, as avoidance of unnecessary attorney fees is crucial.

How to recognize bad-faith practices

I asked Karnikian to describe what insurance bad faith looks like. He said that insurance bad faith comes in many forms, including:

Failure to respond to a claim promptly
Refusal to communicate
Lack of reasonable standards for prompt investigation or processing of a claim
Failing to conduct a fair investigation
Requiring unreasonable proof of a loss
Misrepresenting terms and policy provisions
Denying policy benefits without a clear or valid explanation
Nondisclosure of limitations or exclusions when the policy was sold, or including those in the “fine print”
Delaying decisions and resolution — failure to approve or deny a claim in a reasonable time period after the loss is submitted
Pressuring policyholders to accept a low-ball offer
Forcing the insured to litigate the claim because the insurer refuses to make an adequate settlement offer
Advising policyholders against retaining a lawyer
Threatening policyholders to compel acceptance of an unreasonable settlement offer

If you believe your insurer is using bad-faith tactics to resist paying a valid claim, you can file a complaint with your state’s Department of Insurance, which will conduct an investigation and has the authority to impose penalties and fines on companies for violations.

In addition, depending on your circumstances, you may be entitled to pursue a bad-faith insurance claim in court to recover compensation and hold the insurance company accountable for its breach of contract.

A successful claim can help you gain compensation for:

Contract damages. The amount of wrongfully denied benefits, plus interest.
Extra-contractual damages. Other significant economic losses, as well as mental and emotional distress caused by your insurance company’s failure to fulfill its contractual obligations, including attorney fees.
Punitive damages. Generally reserved for extreme bad-faith cases and considerably more difficult to prove, punitive damages can be awarded to punish the at-fault party.

Proving insurance bad faith after a natural disaster can be very involved.

Your lawyer can help you build the strongest possible case to demonstrate that your insurer acted unreasonably and without proper cause.

“Lawyers who care will try every way possible to keep their clients out of court,” Karnikian says. “We are here to listen and help.”

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post Insurance Bad Faith After Natural Disasters: What to Know appeared first on Dennis Beaver.

December 8, 2025  • By Dennis Beaver

“I got hurt on the job — in my first few minutes, actually — and can’t find a lawyer anywhere to take my case.” That was how my conversation began with 17-year-old “Beau,” who was calling from Charleston, S.C.

“Well, Beau, what kind of job do you have, and how were you injured?”

“Mr. Beaver, you will figure it out sooner or later, so I might as well be upfront. This was to be a weekend job as a porch pirate, working for a guy who runs a crew. A box I picked up exploded, spraying pink glitter everywhere — like what would happen in a gender reveal — and then a loud alarm sounded.

“In my hurry to get away, I tripped over a sprinkler head on the front lawn, fell and fractured my right wrist.

“I want to file a workers’ compensation claim and also sue the homeowner who rigged this booby-trapped package, but when I try to speak with an attorney, everyone laughs at me.”

I thought, “Yeah, I would, too!” But why would a porch pirate, also known as a thief, from the South be calling me?

Morally satisfying, entertaining videos

We’ve all seen — on the news and other websites — videos of a porch pirate swiping a package and walking away with a look of great satisfaction on their face, and then BOOM! The package explodes, covering the thief in brightly colored powdered dye or glitter. Next, we hear the creep swearing loudly.

There are hundreds of these videos that are morally satisfying, especially to anyone who has been the victim of a porch pirate.

Unfortunately, many are AI-generated, but everyone I’ve spoken to enjoys watching the instant karma that’s delivered.

Now, going into business as a porch pirate requires only two things: a vehicle and being morally bankrupt. But what if you don’t have reliable transportation that enables a quick getaway and still have dreams of financial independence through theft?

You go to work for someone who has both.

As Beau explained, “I met a guy who hires people to steal packages. The process was very smooth, very professional.” This is how Beau described it:
The “employer” had one vehicle follow actual delivery drivers and report the addresses where parcels were delivered.

Wearing high-visibility safety vests, Beau and his cohorts were driven to those addresses, where they placed a business card for a tree trimming company on the porch near the recently delivered package, took a photo of it to make the process appear legit, then they would grab the package and leave. (The boss wanted a photo to keep all the Beaus from ripping him off.)

Not only did Beau share a photo of this event, he had an actual video — from walking up to the porch to when he fell.

“This was my first house,” he said. “I was nervous, and instead of selecting the photo option on my phone, I accidentally pushed the button for video.” (He also mistakenly picked up a package that had already been sitting on the porch, not the one that had just been delivered.)

He played it for me. I almost fell out of my chair, laughing.

Why was this South Carolina teen reaching out to a lawyer in California?

Beau explained that he did not tell his father what “the job” was, only that he fell and needed to speak with an attorney.

“My dad reads your Kiplinger column, and you interviewed a lawyer there some time ago, so we thought you might be able to put us in touch with someone.”

Even if I could, I would not.

Could a homeowner actually be held liable in this case?

Every law student in America can tell you about the 1971 Iowa Supreme Court case Katko v. Briney.

The Brineys owned an unoccupied farmhouse that had been repeatedly vandalized and burglarized. They set up a loaded shotgun trap in a bedroom, set to fire when the door was opened, aimed to hit an intruder in the legs. No warning signs were posted.

Katko broke into the house to steal antique bottles and jars and was severely injured when he triggered the trap.

After pleading guilty, he sued the Brineys for actual and punitive damages and was awarded $30,000. The Brineys had to sell much of their farm to satisfy the judgment.

I remember to this day the outrage of students in Professor Ogren’s torts class at Loyola Law School in Los Angeles. How could any lawyer help to reward this thief? How could a state Supreme Court validate the judgment?

This case is still precedent for the proposition that courts do not approve of potentially deadly booby traps, placing human safety over the value of property.

The law generally permits the use of deadly force only when a person is present and faces an imminent threat of death or serious bodily harm. Booby traps, by definition, operate when the owner is likely not present, removing the possibility of a human judgment call on the necessity of force.

Clearly, our genius Beau tripped over a sprinkler head — which was not part of the booby trap — and the glitter did not cause injury. Juries and judges would think, “The kid got what he deserved” — and that is why no lawyer playing with a full deck would take his case.

Has any homeowner been prosecuted or sued for an exploding “bait” package of glitter or dye? I could find no cases, anywhere, over the past several years.

That said, it isn’t recommended that you booby-trap your packages.

My advice to Beau

I thanked Beau for his call, telling him that he was far luckier than he realized.

“You were about to embark on a path that could lead to state prison. Think of the fractured wrist as the luckiest break of your life. Get an education, or a trade, steer clear of creeps who dangle quick-money schemes before your eyes. Also, tell your family the truth and about our conversation.”

He promised to do so. I think he will.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post Meet the World’s Unluckiest — Not to Mention Entitled — Porch Pirate appeared first on Dennis Beaver.

In 2024, more areas of the U.S. experienced earthquakes, leading some homeowners to face what Alaskans and Californians live through and fear: earthquake damage to their homes.

“After their homeowners insurance claims were denied, they considered themselves victims of insurance bad faith but were surprised to learn that was not the case,” says Los Angeles attorney Shant Karnikian. “So, our firm and many others across the country want to educate the public on the importance of looking into buying earthquake insurance.”

Karnikian is managing partner at Kabateck LLP, one of the nation’s most successful mass disaster, personal injury and insurance bad faith claims law firms. Along with associate counsel Annie Martin-McDonough, they asked my help in getting this important message out.

Martin-McDonough points out, “This year’s uptick in earthquake activity underscores the inherent risks of living in seismically active or oil and gas producing regions and the importance of earthquake preparedness.”

We discussed what earthquake insurance covers, more importantly, what it doesn’t.

Martin-McDonough: A common misconception is that homeowners insurance covers all natural disasters, including earthquakes.

Standard homeowners insurance policies do not cover earthquake damage. A separate earthquake insurance policy is required to protect against the financial impact of earthquake-related losses.

Karnikian: Homeowners insurance typically covers events like fire, theft, and certain types of water damage but not earthquakes, as most policies explicitly exclude coverage for damage from earth movement.

Insurance companies avoid covering earthquake damage in standard policies due to the risk of large-scale financial losses. If they were forced to cover the risk of earthquakes under standard policies, it would likely result in much higher premiums for all policy holders.

Instead, homeowners have the option to purchase separate earthquake insurance policies.

Martin-McDonough: Earthquake insurance covers losses caused by the ground shaking, shifting, and cracking, and include:

Dwellings: This protects the structural components of your home, such as the walls, roof, and foundation. Depending on the policy’s terms, dwelling coverage also extends to attached structures, like garages or decks.

Personal Property: This includes belongings inside the home, furniture, electronics, and personal property that may be damaged or destroyed. Some policies offer set limits on specific categories of belongings, so high-value items like jewelry, art or collectibles may have sub-limits or need additional coverage.

Does Not Cover Everything: It typically does not cover damage to landscaping, vehicles, external structures, or damage caused by pre-existing structural issues.

Karnikian: Loss of use/additional living expenses (ALE) is a large policy benefit.

If the home is uninhabitable, it covers temporary living expenses such as hotel bills or rental costs during the repairs if it can be repaired. Usually it has a set limit and time frame, therefore understanding how long this support will last is important to know.

Martin-McDonough: Your premiums, deductibles, and policy limits, can be a significant financial investment. Always weigh its cost against the expense of repairing or replacing the home and belongings.

Premiums Vary Widely: Depending on a home’s proximity to known fault lines, or oil and gas-producing areas, homeowners face higher premiums due to the increased likelihood of earthquake damage.

Older homes, especially those without retrofitting, may face higher premiums due to the higher likelihood of damage.

Deductibles Aren’t Like Regular Homeowners Insurance

Earthquake insurance deductibles are different than the fixed amount in a standard homeowners policy and range from 10% to 25% of the home’s insured value.

This means that in the event of a claim, policyholders will pay a substantial portion of the repair costs themselves.

Karnikian: Be pro-active. Document! Take photos and videos before you need them.

To support a future homeowners or earthquake insurance claim, create a comprehensive home inventory that includes:

– Belongings with descriptions, and photos

– Purchase prices, receipts, warranty booklets, and things that make it easier to substantiate losses. Keeping this inventory up-to-date also ensures that policyholders have an accurate record of their possessions.

– Photograph and document the home’s condition by creating a detailed video of the physical structure and contents in closets, drawers — everything.

Review and Understand the Policy

Familiarizing yourself with the terms and coverage details of both your homeowners and earthquake insurance policies will help in understanding what is needed to prove your loss and avoid surprises during the claim process.

Have you performed retrofit and seismic upgrades?

Many earthquake insurance policies offer lower premiums or higher payout potential for homes retrofitted to withstand earthquakes. If a homeowner makes these upgrades, it is critical save all receipts, permits, and certifications related to the work.

Save Records in a Secure, Accessible Location

Back up all photos, videos, receipts, and documents both physically and digitally to the cloud and a safe deposit box at a financial institution.

Earthquake insurance is a critical component of preparedness. Understanding the scope of coverage, policy limits, and deductibles can prevent financial devastation in the wake of a seismic event.

Concluding our interview, both lawyers stressed the importance of meeting with your insurance agent or broker and analyzing if earthquake insurance is something that you can afford and truly need.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post Understanding earthquake insurance appeared first on Dennis Beaver.