Client Wins Insurance Bad Faith Case

Robinson & Henry’s knowledgeable attorneys give their professional insight in “From Our Perspective,” where we take a closer look at successful outcomes achieved by our attorneys. 

In this episode, Robinson & Henry Litigation Senior Associate Matthew Hamblin shares his insights into a successful battle against insurance company denials. 

When a hailstorm hit Denver in June of 2023, our client never expected that getting help from his insurance company would become a months-long struggle. Thanks to Hamblin’s work, our client got a new roof and recovered damages for the insurance company’s inaction and ensuing stress. The final result was more than twice the original payout, covering both the roof and additional compensation for the delay.

Past results afford no guarantee of future results; each matter is different and must be judged on its own merits. Facts are those of an actual Robinson & Henry litigation case. 

The storm that hit Stuart’s neighborhood was severe. His house and detached garage both sustained significant hail damage. Like most homeowners, Stuart did what he was supposed to and contacted his insurance company to file a claim. An adjuster came out and agreed to cover repairs to the detached garage, but surprisingly, the adjuster didn’t include the home’s roof in the estimate.

Doubting the insurance company’s findings, Stuart hired a contractor for a second opinion. The contractor found extensive hail damage across the roof, enough to warrant a full replacement. Stuart took this new information to the insurance company, hoping it would trigger a second inspection and fair reassessment.

The insurance company agreed to send another inspector. During the revisit, the adjuster documented the damage and agreed that the roof needed to be replaced. However, what seemed like progress quickly turned into more frustration.

After weeks of waiting without any update, Stuart contacted the insurance company. Their response was shocking: they claimed no knowledge of the second inspection. 

Confused and understandably frustrated, Stuart sought legal help. He contacted Robinson & Henry and began working with Senior Associate Attorney Matthew Hamblin. Hamblin’s litigation practice focuses on insurance claim denials and personal injury cases.

After reviewing the case, Hamblin saw clear signs of what Colorado law defines as “unreasonable delay and denial.” Although the insurance company had documentation from its inspector confirming damage, it took no action for months and even failed to acknowledge that the inspection had taken place.

Hamblin demanded a proper re-inspection. After this legal pressure, and months following the initial claim, the insurance company finally approved a full roof replacement. But for Hamblin, that wasn’t enough. The company’s failure to timely and properly assess the damage, combined with poor communication and inaction, warranted further legal action.

Under Colorado’s laws, if an insurance company unreasonably delays or denies a valid claim, it can be held liable for twice the amount delayed or denied, plus attorney’s fees and costs. These laws are designed to protect consumers like Stuart when valid claims are neglected or ignored. Robinson & Henry filed a lawsuit on Stuart’s behalf, asserting the insurance company had acted in bad faith. 

The insurance company agreed to a settlement that amounted to more than double the originally denied and delayed. Thanks to Hamblin’s work and Stuart’s persistence, our client was able to replace his roof and recover damages for the months of stress and inaction.

This case is a reminder that homeowners don’t have to accept the first answer from their insurance company, especially when something feels off.  Hamblin encourages homeowners to keep pressing for answers, request additional inspections, and document everything.

Read this video’s full transcript:

Question:  Matthew, thank you so much for joining me today. Tell me more about our client and what had happened to his roof.

Matthew: Stuart, he lives here in Denver. He had a pretty extreme hailstorm come in June 28th of 2023. It managed to destroy his roof and his detached garage, causing some pretty significant hail damage. 

Question: How did the insurance claim process unfold in this case?

Matthew: Stuart did what anybody else would do. He called his insurance company. They came out did an initial inspection. They found damage to the detached garage, agreed to replace that, but ultimately did not agree to replace the roof of his home.

Question: What were some of those delays and roadblocks that our client faced?

Matthew: He went and got his own contractor. His contractor took a look at the roof himself. Contractor found way more hail damage than the insurance company found. Enough hail damage to warrant a full replacement of the roof.

Stuart gets this information. He contacts his insurance company and says, hey, you guys need to look at this. You know, the insurance company said we'll get someone out there. On October 6th, insurance sends a field adjuster out. They take pictures, says, yep, we need to replace this roof. 

Stuart waits, and he waits. Around October 31^st, he contacts his insurance company and says, where's the results of this second inspection? 

They tell him what second inspection? You've had multiple inspections on your property. None of this makes any sense so Stuart decides to contact us. 

It isn't until February of next year where the insurance company admits, yeah, we sent someone out there. They took some photographs. We didn't look at them.

Question: Once you were involved, how did you push for a fair resolution?

Matthew: We said that's unacceptable. You guys need to come out and do a proper re-inspection. They do the re-inspection. I believe in the end of February of the next year. They approve a full roof replacement. 

But, we didn't stop there. We then filed a lawsuit for unreasonable delay and denial. Their failure to identify the damage to the roof, the obvious damage to the roof, their failure to communicate with their client and say, you know, we didn't take a look at these photographs to not do a reinspection was unreasonable.

Question: This case also involved bad faith insurance practices. Can you explain exactly what that means here in Colorado?

Matthew: Colorado has a statute, it’s unreasonable delay denial statute. If your insurance company unreasonably denies your claim or delays payment of your claim - again unreasonably, you can get two times the amount that they denied or delayed, plus attorney's fees and costs.

Question: Ultimately, what was the outcome in this case? 

Matthew: In this case, we were able to obtain more than double what was delayed and denied.

Question: What advice would you have, Matt, for any homeowner who might be in a similar situation with their insurance company? 

Matthew: My advice would be to do what Stuart did in this case, which helped him out at the end.He kept the ball in the insurance company's court. He didn't just accept what they told him. 

Then he said, where is my estimate? What are you going to do about my roof? Don't just accept what they give you. Push back. Ask for another inspection. When they tell you no, when they refuse to do things reasonably and promptly, call an attorney.