By The Restoration HQ desk · · filed under Claims & Coverage
Court reverses State Farm water-damage denial, narrows the "genuine dispute" shield
A court reversed a State Farm water-damage denial and limited the carrier's "genuine dispute" defense, which carriers use to dodge bad-faith exposure when they claim a denial was merely a reasonable disagreement.
FORCourts are tightening the screws on lazy denials, so write the claim clean and the law is moving your way.
AGAINSTIt took a lawsuit and an appeal to undo one bad water denial, so don't bank your cash flow on the courts saving you.
Consensus vs. contrarianConsensus: good precedent for policyholders. Contrarian: precedent only matters to operators who can afford to litigate, which most mid-size shops can't, so the real lever is documentation that never lets it become a "dispute."
Sources Merlin Law Group, www.propertyinsurancecoveragelaw.com/blog/st… (published )