Insureds Failed To Prove Homeowners Insurer’s Denial Of Coverage Was Unreasonable

(May 24, 2019, 9:07 AM EDT) -- PIERRE, S.D. — A bad faith claim alleged by insured homeowners seeking a finding that their insurer owes coverage for the costs of complying with an injunction that required them to tear down and rebuild their house must be dismissed because the insureds failed to show that the insurer lacked a reasonable basis for denying coverage, a South Dakota federal judge said May 17 (Joseph Sapienza, et al. v. Liberty Mutual Fire Insurance Co., No. 18-3015, D. S.D., 2019 U.S. Dist. LEXIS 84973)....