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Bad Faith Blog

We cover current issues, highlights and best practices exclusively on claims of bad faith and extra contractual damages.

Bad Faith Blog
September 1, 2016

Iowa Rule: First-Party Bad Faith Claim Barred Because Not Brought With Breach of Contract Suit Against Insurer

Summary: The insured made significant improvements to its building, thereby increasing building’s value. Insurer made initial payments to insured under building, personal property and business income coverages. After substantial negotiations between insurer and insured’s counsel, insured filed breach of contract action against insurer. Insured won at trial, and insurer paid the judgment and interest and obtained a satisfaction of judgment.