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Step 4 of 4
Litigation
Taking your insurance dispute to court with legal representation.
Typical Timeline
6-24 months
Typical Cost
$5,000-$50,000+
Decision By
Judge or Jury
Litigation is a Last Resort
Suing your insurance company is expensive, time-consuming, and emotionally draining. It should only be considered when:
- All other resolution methods have failed
- The amount in dispute justifies the cost
- You have strong evidence of bad faith or breach
- An attorney believes you have a viable case
When to Consider Litigation
Insurance litigation typically falls into two categories:
Breach of Contract
Your carrier failed to honor the terms of your policy.
- • Wrongful denial of covered claim
- • Significant underpayment
- • Failure to investigate properly
- • Unreasonable delays
Bad Faith
Your carrier acted unreasonably or dishonestly.
- • Denying claim without investigation
- • Misrepresenting policy language
- • Unreasonable interpretation of facts
- • Threatening or coercive tactics
Bad faith claims may allow for additional damages beyond the policy amount.
Statute of Limitations
Every state has a deadline for filing insurance lawsuits. Miss it and you lose your right to sue forever. Here are some examples:
| State | Deadline | Notes |
|---|---|---|
| Florida | 5 years | From date of loss |
| Texas | 2 years | From date of denial |
| California | 1-4 years | Depends on policy type |
| New York | 6 years | From breach of contract |
| Louisiana | 1 year | From date of loss |
* These are general guidelines. Your policy may have shorter contractual deadlines. Always consult an attorney for your specific situation.
Finding an Insurance Attorney
Look for specialization
Find attorneys who specifically handle insurance disputes, not general practice
Ask about contingency fees
Many insurance attorneys work on contingency (no win, no fee) for strong cases
Check their track record
Ask about their experience with cases similar to yours and their success rate
Get a free consultation
Most insurance attorneys offer free initial consultations to evaluate your case
Pros and Cons
Advantages
- • Full discovery process (access to carrier's files)
- • Jury trial option
- • Potential for bad faith damages
- • Formal legal protections
- • Precedent-setting decisions
- • Attorney fees may be recoverable
Disadvantages
- • Very expensive
- • Takes 1-2+ years
- • Emotionally draining
- • Uncertain outcome
- • Public record
- • Carrier has experienced lawyers
Documentation is Everything in Court
If you're considering litigation, your documentation needs to be impeccable. Photos, receipts, communications, and professional analyses can make or break your case.
Pro Tip: Even if you're not sure about litigation yet, start documenting everything now. It's much harder to recreate evidence later.