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What can be done about a bad faith claim?

Question Details: We suffered water damage from from broken water line. This is a result of a crew from the water company trying to repair a leak. Water shot 30 ft into the air landing on pool cement deck and running everywhere for 1 hour or more. It damaged my wood deck under pinning support, the cement stairs collapsed, the pool plaster cracked, the pool cement deck cracked, landscaping washed away, the pool equipment enclosure was destroyed and the lawn filled with gravel. The water company will only pay for half of the cost to repair. My homeowner's insurer says its complicated but we are not covered? I believe this is bad faith.

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