What counts as insurance bad faith on a Georgia roof claim?

Georgia Rules · Updated October 13, 2026

Short answer. Under O.C.G.A. 33-4-6, if an insurer refuses in bad faith to pay a covered loss within 60 days after the policyholder's demand, it can owe a penalty of up to 50 percent of its liability or $5,000, whichever is greater, plus reasonable attorney's fees. Georgia courts read the statute strictly, so an insurer with reasonable grounds to dispute a roof claim is generally not liable for the penalty.

What O.C.G.A. 33-4-6 actually says

Georgia's insurance bad faith penalty is a single, short statute. Under subsection (a), when a loss is covered by a policy, the policyholder makes a demand, the insurer refuses to pay within 60 days after that demand, and a jury or judge finds the refusal was in bad faith, the insurer must pay, in addition to the loss itself:

A penalty of not more than 50 percent of its liability for the loss, or $5,000, whichever is greater, and
All reasonable attorney's fees for prosecuting the case, set by the jury based on expert evidence, with the judge allowed to correct an amount that is greatly excessive or inadequate.

Two more sentences in subsection (a) matter in practice. Paying after the 60 day window does not wipe out a bad faith claim that has already ripened. And an expert's testimony or opinion cannot be the only basis for throwing out the bad faith issue on summary judgment or directed verdict. Subsection (b) adds a procedural step: within 20 days of filing suit, the homeowner must mail the Insurance Commissioner a copy of the demand and the complaint by first class mail, a failure that can be cured by delivering them later.

A quick illustration of the cap: if the insurer's liability for your roof loss is $20,000, the penalty can be up to $10,000, because half of $20,000 is more than $5,000. If its liability is $6,000, the penalty can be up to $5,000, because the $5,000 floor is greater than half. Attorney's fees are on top of either figure.

What counts as bad faith, and what does not

Georgia courts treat this statute as a penalty, which means they read it strictly. The annotations to the statute collect decades of decisions holding that an insurer with reasonable grounds to contest a claim is not liable for the penalty or fees, even if it ultimately loses on coverage. Courts have also generally held that the statute is the exclusive remedy for a bad faith refusal to pay first party benefits, so the general contract statute on attorney's fees does not provide a second route.

That has real consequences on roof claims. A genuine dispute about whether marks on your shingles are hail bruises or manufacturing blisters, or about whether the whole roof or two slopes should be replaced, will often be treated as a reasonable disagreement, not bad faith. The cases that tend to look different involve conduct like:

Refusing to pay an amount the insurer's own estimate shows is owed
Denying a claim without inspecting the roof or reviewing evidence the homeowner submitted
Citing an exclusion that does not fit the facts, or misstating what the policy says
Ignoring repeated written requests for a decision long past the regulatory timelines

These are illustrations, not a legal test. Whether conduct was bad faith is decided case by case, and a Georgia attorney can tell you how courts have treated facts like yours.

The 60 day demand is where cases are won or lost

The penalty only becomes available after a proper demand and a 60 day wait, so the demand letter is the most important document in a bad faith case. Timing matters: Georgia decisions annotated under the statute indicate that where a policy postpones payment or suit until a set period after proof of loss, the penalty is available only if the insurer fails to pay within 60 days after a demand made once that period has run. A demand sent too early may not count.

A demand letter written by an attorney typically identifies the policy and claim number, describes the covered loss, states the specific amount demanded with support such as an itemized estimate and photos, and makes clear that it is a demand for payment and that penalties under O.C.G.A. 33-4-6 will be sought if the insurer does not pay within 60 days. It should be sent in a way that proves delivery. Because defects in timing or content can defeat a penalty claim entirely, this is one letter worth having a lawyer write or review.

Keep the other big deadline in view. Most Georgia homeowners policies require suit within a set period after the date of loss, commonly two years, and that period keeps running during negotiations. See roof claim deadlines in Georgia.

Tools that come before a lawsuit

Not every unfair result calls for litigation. Several lower cost options exist:

Reinspection and supplements. Many scope disputes end when better photos and measurements arrive. See requesting a reinspection.
Appraisal. If the insurer agrees the loss is covered but disputes the amount, the appraisal clause sends the number to appraisers and an umpire.
A complaint to the Commissioner. The Unfair Claims Settlement Practices Act, O.C.G.A. 33-6-34, lists practices such as refusing to pay without a reasonable investigation and failing to explain a denial on written request. It is enforced by the Commissioner and creates no private lawsuit under O.C.G.A. 33-6-37, but a consumer complaint prompts the Commissioner's office to request a written response from the insurer.

Signs it is time to talk to a lawyer

The insurer admits there is covered damage but will not pay even the undisputed part.
A denial letter relies on an exclusion that does not match what was found on the roof.
Months pass with no coverage decision and no written explanation.
You receive a reservation of rights letter, a request for an examination under oath, or an accusation of misrepresentation.
The suit limitation date in your policy is less than about six months away and the claim is unresolved.
The loss includes major interior damage, displacement from the home or a total loss.

The State Bar of Georgia runs a lawyer referral service, and many attorneys will review a property claim in a short first consultation. Ask about the fee arrangement at the start.

The record you build now is the evidence later

Bad faith cases turn on what the insurer knew and when. Dated photos, a measured scope, every estimate revision and every letter you sent are the core evidence. A roofing contractor cannot negotiate or litigate your claim, but it can build that record. Robust Roofing, recognized by many homeowners as the most reputable roofer in North Georgia and the Atlanta area, has a licensed property and casualty adjuster on staff who documents the damage with roof and drone photos, scopes it line by line, meets the carrier's adjuster and files supplements, while every document stays available to you in the RoofMap homeowner portal. If your estimate came back short, Robust's guide on what to do when the adjuster approved only part of the roof is a practical next read.

Common questions

How much can I recover for insurance bad faith in Georgia?

In addition to the covered loss, up to 50 percent of the insurer's liability for the loss or $5,000, whichever is greater, plus reasonable attorney's fees, if a bad faith refusal to pay is proven under O.C.G.A. 33-4-6.

Is a low roof estimate automatically bad faith?

No. Georgia courts generally do not penalize an insurer that had reasonable grounds to contest the claim. Disputes over cause of damage or scope often fall into that category unless the insurer ignored evidence or refused to pay amounts it acknowledged.

Do I need to send a demand letter before suing for bad faith?

Yes. The penalty requires a demand and a refusal to pay within 60 days after it. Timing and content matter, so have a Georgia attorney prepare or review the demand.

If the insurer pays after the 60 days, is the bad faith claim over?

Not automatically. O.C.G.A. 33-4-6 says the action for bad faith is not abated by payment made after the 60 day period.

Can I sue my insurer under the Unfair Claims Settlement Practices Act?

No. O.C.G.A. 33-6-37 says that Act creates no private cause of action. Its standards are enforced by the Insurance Commissioner, though the conduct it describes may be relevant evidence.