What to do when your insurer stops communicating or threatens to close your claim

Short answer: Act quickly. Document everything. Put requests in writing. Escalate inside the company. If the carrier still refuses to cooperate or improperly threatens closure, file a complaint with the California Department of Insurance and consider speaking with an attorney who handles insurance claims. This article explains practical steps under California law and points you to helpful resources.

Detailed Answer

Insurance companies in California must follow fair-claims practices. California law prohibits insurers from engaging in unfair claim settlement practices, including unreasonable delays, misrepresenting policy provisions, or refusing to communicate without reasonable cause. See California Insurance Code § 790.03 for the statutory list of unfair practices: Ins. Code § 790.03.

Step-by-step actions you should take

1. Document every contact now. Create a claim log with dates, times, names, phone numbers, and a short note of what was said. Keep all emails, letters, text messages, photos, estimates, and receipts.
2. Send a written status request immediately. Email or mail a concise letter to the adjuster and the claims department asking for a written status update and the specific reason and law or policy provision that supports any threatened closure. Include claim number, policy number, and a deadline for reply (e.g., 10 business days). Sending by certified mail with return receipt creates proof of delivery.
3. Ask for any deficiencies in writing. If the insurer says it will close the claim because information is missing, ask the insurer to identify precisely what is missing and how you can cure it. Request reasonable time to provide additional information.
4. Review your policy obligations. Check your policy for notice, proof-of-loss, and cooperation requirements. Meeting those duties is important to prevent legitimate closure. If a claim denial or closure is based on an asserted policy deadline, note the dates and preserve communications showing you acted promptly.
5. Escalate within the company. Ask for a supervisor or claims manager. Insurance companies often respond to escalation. Keep a record of escalation attempts and responses.
6. Request the claim file and any denial/closure letter. Ask for copies of all documents the company relied on, including internal notes, estimates, and recorded statements, so you can assess whether the carrier followed correct procedures.
7. Use the Department of Insurance as a resource. If the insurer remains unresponsive or threatens to close without justification, file a complaint with the California Department of Insurance (CDI). The CDI accepts consumer complaints, investigates, and can take enforcement action if the insurer violated the law. Start at the CDI consumer page: California Department of Insurance and file a complaint here: How to File a Complaint.
8. Consider a written demand or attorney involvement. If the carrier improperly denies, delays, or threatens closure that would prejudice your rights, a demand letter from an attorney can prompt a response. An attorney can evaluate whether you have grounds for a bad-faith claim or breach of contract.
9. Do not sign releases or accept final payment without confirming it resolves everything. A “full and final” release may prevent you from reopening the claim later. If you accept payment, ensure it actually covers your losses and that you understand the legal effect of any release.
10. Act promptly. Waiting can harm your ability to challenge a closure. Preserve evidence and start the complaint/escalation process quickly.

What the law says (brief overview)

California’s unfair-claims statute lists practices that may be unlawful, including failing to acknowledge communications promptly, failing to adopt reasonable standards for prompt investigation, failing to promptly provide a reasonable explanation for a denial, and making statements that misrepresent policy provisions. See Insurance Code § 790.03. The Department of Insurance enforces consumer protections and can take disciplinary action when insurers violate the law.

When to involve a lawyer

Consider consulting a lawyer when: (1) the insurer refuses to provide a reason for closure or denies coverage it previously acknowledged; (2) the carrier’s conduct causes financial harm; (3) the insurer fails to investigate in a reasonable time; or (4) you receive a final denial, release, or language that would bar you from pursuing the loss later. An attorney can advise on deadlines, damages, and whether a bad-faith case exists.

Helpful Hints

• Keep a single organized folder (paper or digital) for all claim materials and date every entry.
• Use short, professional written messages. State facts, not emotions. Include claim and policy numbers.
• Ask for responses in writing. Verbal promises are hard to prove.
• When asked for additional documents, provide what you can quickly and note what you’ve sent and when.
• Request contact information for the claims supervisor and appeals unit.
• File a complaint with the California Department of Insurance if internal escalation fails: CDI consumer complaint.
• A certified demand letter or attorney involvement can move stalled matters, but weigh the cost and the value of your claim.
• Do not sign anything labeled “final release” or “full and final” until you are certain the payment and release resolve your entire loss.

Where to get more help: Start with the California Department of Insurance consumer resources at insurance.ca.gov. For legal questions about deadlines or potential litigation, contact a licensed California attorney who handles insurance claims.

Disclaimer: This article explains general information about California law and is not legal advice. It does not create an attorney‑client relationship. For legal advice about your specific situation, consult a licensed attorney.