The recent wildfires in California and hurricanes that battered the East Coast this fall have underscored the importance of policyholders knowing the extent of coverage they purchased and their rights if they must ultimately take their insurer to court.

Here, Law360 talks to Diana Shafter Gliedman, a senior shareholder of Anderson Kill PC's insurance recovery group, about what policyholders should keep in mind when purchasing insurance coverage, what to do in the event of a loss and common pitfalls that could prevent a policyholder from securing a recovery.

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A lot of consumers and small businesses may be surprised to know that the insurance industry is primarily regulated by the states. How does that affect the ways that insurers do business?

Insurance regulation, in my experience, really has more to do with how insurance companies run their businesses and what they sell than what the policyholders end up having to deal with, which is essentially claims and being able to purchase the best insurance that they can.

Every state has its own insurance commissioner, and from state to state, they are very different. Some states have very insurance company-friendly commissioners, and others have more policyholder-friendly commissioners. Depending on how they work and how they work with the Legislature, it can mean that there are different causes of action available to policyholders. The means to purchase different types of insurance or the ability to pursue a bad faith claim, for example, may have something to do with the insurance regulation.

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