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.
If you believe that your insurance policy does apply--that under the policy's plain terms, the insurer should have paid--you can sue the insurer for "breach of contract." If you can prove that under the terms of the policy, given the cause of the damage, the claim is covered, they court can order the insurer to pay. Be aware that if they are right and this cause is not covered by the policy, the will not have to pay: the policy is a contract, and the insurer only pays if and when the cause is covered by the terms of the policy.