Beware of a Coverage Opinion Letter or Reservation of Rights notice from your home or business insurance carrier. A Coverage Opinion Letter is often called a “Rejection Letter” by insurance company defense attorneys. If you receive a coverage opinion letter from your insurance company after submitting a claim it should raise a huge red flag.
Even Well Known Insurance Companies can Act in Bad Faith
Insurance companies are not in business to provide good people and businesses with protection in exchange for a premium. They are in business for one simple reason: to turn a profit. The attorneys who represent insurance companies may have their own letterhead, but often are simply extensions of the insurance company itself. The primary interest and first legal obligation under the law of the insurance defense attorney: defend the policy, attempt to deny every claim possible and limit the amount an insurance company must pay to settle any claim. The actions taken by your insurance company and its representatives and adjusters can be classified in some cases as insurance bad faith.
Insurance Company Attorneys Represent the Policy Itself – Not You
Note, the job of the insurance company’s attorneys is NOT to represent you. It is to represent the policy itself, and the fastest and least expensive way to do so is to throw you under the proverbial bus. If they can shift the blame to you in the form of “intention” or “reckless” or “criminal” behavior (such as DUI) they have successfully relieved the insurance company of their obligations to cover your valid claim leaving you completely financially exposed.
If you receive a Coverage Opinion Letter or Reservation of Rights letter from your insurance company it means one thing: they intend to deny coverage of your claim or attempt to throw you under the bus and you need your own representation. California law is quite advanced in these cases, and recognizes that the attorneys representing the insurance company have an inherent conflict of interest:
They should be representing YOU, but they actually owe their first and primary allegiance to the insurance policy itself.
What is a Cumis Counsel in California?
This is why California provides insured parties who are facing or named in a lawsuit with the right to Cumis Counsel. A Cumis Counsel is your own independent attorney who looks out for and protects your personal interests. Perhaps best of all, your insurance company must pay for your Cumis Counsel. It is important in these cases to make sure any settlement protects your interests as well as those of the insurance company.
What to Do If You Receive a Coverage Opinion Letter or Reservation of Rights Notice from Your Insurance Carrier
If you have received a denial letter from your insurance company, or a Coverage Opinion Letter or Reservation of Rights Letter from your insurance carrier you will need several things including:
An independent analysis of whether the terms of your policy cover what has happened
Insight into contesting what is happening and protecting your own interests
In some cases, the representation of your own Cumis Counsel
Advice and counsel from a San Diego real estate attorney with decades of experience
This is why we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. If you receive a Coverage Opinion Letter or Reservation of Rights notice in San Diego you need to immediately seek legal advice.
