The short answer
Bad faith is state-defined but generally means unreasonable delay, denial without investigation, misrepresenting policy provisions, or refusing to negotiate. Winning a bad faith case unlocks damages above the policy limit — attorney fees, emotional distress, and in some states punitive damages. Threshold is high; get an insurance-litigation attorney (contingency, usually 33%).
Frequently asked
- Do I have to exhaust the claim first?
- Most states require you to give the insurer a final chance in writing. Some require an appraisal or DOI complaint first.
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