Allegations Support Bad Faith Claims Against Homeowners Insurer, Judge Says

(July 18, 2024, 1:13 PM EDT) -- PROVIDENCE, R.I. — Breach of contract and bad faith claims alleged against a homeowners insurer can proceed because the complaint’s allegations support an inference that the insurer did not act reasonably in handling the insureds’ claim for water damages in their home and because the insurer is estopped from enforcing the policy’s two-year suit limitation provision based on the insurer’s continued negotiations with the insureds, a Rhode Island federal judge said in denying the insurer’s motion to dismiss....