Bad Faith Claim In Flood Dispute Is Preempted By Federal Law, Judge Rules

Mealey's ( February 6, 2020, 10:45 AM EST) -- CHARLESTON, S.C. — A federal judge in South Carolina on Jan. 31 granted a Write-Your-Own (WYO) insurer’s motion to dismiss an insured’s bad faith claim and request for consequential and punitive damages and attorney fees in a flood coverage dispute, finding that the bad faith claim is preempted by federal law and the Standard Flood Insurance Policy does not confer a right to allege extracontractual claims against WYO insurers (Allison A. Knapp v. Hartford Insurance Company of the Midwest, et al., No. 19-1969, D. S.C., 2020 U.S. Dist. LEXIS 18291)....