Minimizing Bad Faith Insurance Risks in First-Party Property Claims

First-party property damage claims are fraught with pitfalls for insurers. After 2017’s spate of natural disasters due to hurricanes and fires, insurers must exercise diligence in processing property damage claims.

Disputes over property damage appraisals are common, with the policyholder alleging the loss appraisal to be unreasonably low. Policyholders also claim bad faith due to the insurer’s unjustified delay in settling.

Counsel must understand the prevailing case law in the jurisdiction of the claim and proactively minimize risks of bad faith actions in property insurance claims.

Listen as our panel of insurance practitioners analyzes the types of conduct that may cause a bad faith claim to arise from first-party property claims, including disputes over property damage appraisals. The panel will discuss prevailing case law on bad faith claims in the property insurance context and offer best practices for insurers to minimize risks of bad faith claims.

1. Types of bad faith claims that generally arise in the context of first-party property claims
2. Case law on bad faith claims in the property insurance context
3. Best practices to minimize risks of bad faith allegations in property claims

The panel will review these and other key issues:

• Insurer conduct that triggers a bad faith claim in property damage claims
• Bad faith claims regarding property damage appraisal
• Case law on bad faith actions in the property insurance context