What is a bad faith insurance claim in Georgia?
What counts as bad faith
A low estimate is not bad faith by itself. Courts ask whether the insurer had a reasonable ground to contest the claim. If there was a genuine dispute over cause, such as hail versus age, or over the amount, Georgia courts usually treat the refusal as reasonable even if you later recover more. Bad faith looks more like ignoring clear evidence, refusing to inspect, misstating the policy, or sitting on an amount nobody disputes.
How the 60-day demand works
- The demand comes after the loss is due and asks for payment of a specific covered amount.
- It should put the insurer on notice that you will seek the bad faith penalty and fees if it does not pay.
- The 60 days run from the insurer's receipt, so send it in a way you can prove, such as certified mail.
Georgia courts read these demands strictly, which is why most homeowners have an attorney write it.
What usually comes first
Most roof disputes end well before a demand letter, through a documented supplement, a reinspection request, or the appraisal clause when the only fight is price. Georgia's Unfair Claims Settlement Practices Act also sets claim handling standards, but it does not let you sue directly; violations are enforced by the Insurance Commissioner. Our Georgia bad faith guide covers the remedies in more depth.
Keep a clean record
Write down every call with the date and the person's name, save every email and letter, and keep the adjuster's estimate next to your contractor's. A bad faith case is built on the timeline of what the insurer knew and when. This is general information, not legal advice; a Georgia insurance attorney can tell you whether your facts fit the statute.