You spent a large part of your company’s money purchasing a piece of real estate on which to build your new headquarters. With the plans finalized and the diggers ready to roll, you discover that the seller scammed you. They had no right to sell the property as it was not theirs.
It seems incredible that it can happen in this day and age, yet it does. Despite your best efforts to check for problems before parting with your money, somehow, the searches showed the property title as clean and missed the issues that lay in waiting.
At least you had the good sense to take out title insurance. Yet, when you claim on it, the insurance company does not give you the response you hope for. When they type your claim into the machine, the computer says no, or at least that is what they tell you.
Insurers do not like parting with money
Insurance companies are experts at finding ways to avoid the payouts they should. Sometimes, they have a valid reason, yet often, the reasons they give you, the insurance holder, are invalid.
To fathom whether the insurance company is playing games and acting in bad faith or their reason is valid requires an understanding of the laws that California insurers operate under. Insurers know that many policyholders will not go the whole way to try and prove their claims. Every time an insurer can put someone off altogether or fob them off with an inadequate offer, it increases profits. Showing you will fight until the end by filing a bad-faith lawsuit may be needed to get them to pay up.