A homeowner sued her insurance company for mishandling water damage and mold claims. The jury awarded $32 million, but the appeals court reduced it to $4 million in actual damages. The court found the insurance company breached its duty of good faith and fair dealing by failing to use a competent, independent appraiser. However, the court threw out punitive damages and mental anguish awards because the insurer didn't act with knowing intent to harm. For subcontractors, this shows that insurance disputes can be won on breach of duty grounds, but you need clear evidence of intentional wrongdoing to get punitive damages.
Document everything your insurance company does (or doesn't do) when handling your claim—poor investigation and incompetent adjusters can prove breach of duty
Actual damages for real losses are easier to recover than punitive damages; focus on proving your actual out-of-pocket costs and repair expenses