Bad Faith Blog
September 11, 2011
Almost Getting It Right Does Not Foreclose a Bad Faith Suit in Colorado
Summary: American Family insured the Dunns who had sewer and water backup flooding in their basement. That flooding led to a mold build up and them vacating the house. The vacant and unheated house during a Colorado winter resulted in water pipes freezing and breaking. Despite a payment of the full policy limits, the Dunns had the right to pursue a bad faith claim for allegedly bad faith conduct due to delays and the manner in which American Family adjusted the claim.