Bad Faith Claim Dismissed; Coverage Denial For Cracking Walls Was Fairly Debatable

(June 11, 2018, 10:04 AM EDT) -- BRIDGEPORT, Conn. — A Connecticut federal judge on June 6 dismissed claims alleging bad faith and violations of Connecticut’s Unfair Trade Practices Act and Unfair Insurance Practices Act alleged against a homeowners insurer because the insurer’s coverage denial was fairly debatable; however, the judge refused to dismiss the breach of contract claim against an insurer after determining that there is a possibility that coverage exists under policies issued before 2006 for cracking in the insureds’ basement walls as a result of a chemical reaction (Stephen Rosenberger, et al. v. Amica Mutual Insurance Co., No. 17-612,  D. Conn., 2018 U.S. Dist. LEXIS 95345). ...

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