The Definition of Bad Faith
In the Kansas City roofing market, "bad faith" isn't just a term for a denied claim. It occurs when an insurance company fails to fulfill its fiduciary and contractual duties to the policyholder. This can manifest as an unreasonable delay in payment, a failure to investigate the claim properly, or offering a settlement that is demonstrably lower than the current market rates for local materials and labor.
A Tale of Two States: The Legal Divide
Kansas City homeowners face a unique legal landscape because bad faith remedies differ significantly depending on which side of the State Line you reside.
The Missouri Side (KCMO, Independence, Raytown)
Missouri utilizes the "Vexatious Refusal to Pay" statute (Section 375.420 RSMo). If a jury finds that an insurer refused to pay a roofing claim without "reasonable cause or excuse," the homeowner may be entitled to:
- The full amount of the original loss.
- A penalty of 20% on the first $1,500 and 10% on the remainder.
- Reasonable attorneyâs fees.
The Kansas Side (OP, Shawnee, Leawood)
Kansas focuses on K.S.A. 40-256. While Kansas doesn't have the "percentage penalty" found in Missouri, the court can order the insurer to pay the homeownerâs attorney fees if the refusal to pay was "without just cause or excuse." This is critical because roofing litigation costs can often eclipse the cost of the roof itself.
Red Flags for KC Policyholders
As roofing experts, we often see bad faith patterns emerging after major hail events in the Northland or southern Johnson County. Watch for these indicators:
- 1Ignoring Local Labor Realities: If an adjuster uses "national average" labor rates that don't reflect the high demand in Kansas City, they may be lowballing. Local crews and suppliers like ABC Supply Co. or SRS Distribution on Manchester Trafficway have specific pricing tiers that insurers must respect.
- 2The "Partial Replacement" Trap: If your roof has discontinued shingles (like certain older CertainTeed or IKO lines common in mid-century Raytown homes), and the insurer insists on a "patch" that doesn't match, they may be violating "Uniformity" or "Matching" regulations, which can be a basis for a bad faith claim.
- 3Unreasonable Investigation Delays: If your claim in Blue Springs has sat idle for 60+ days without a decision or a clear request for more information, the insurer may be intentionally dragging their feet to pressure you into a lower settlement.
Pricing Discrepancies as Evidence
A common bad faith tactic involves the insurer refusing to acknowledge "market price spikes." In 2023-2024, asphalt shingle prices in the KC metro saw significant volatility. If an insurer refuses to adjust their Xactimate estimate to reflect a 15% increase in local material costs despite proof from local suppliers, they are potentially acting in bad faith.
Establishing the Paper Trail
To prove bad faith, a Kansas City homeowner must demonstrate that the insurerâs conduct was more than just a simple disagreement over the scope of work. It requires documentation:
- Timelines: Log every phone call, email, and inspection date.
- Photographic Proof: If an adjuster claims "no damage" in a neighborhood like Brookside that was just pelted with 2-inch hail, photos of neighboring properties and your own gutters/AC fins are vital.
- Expert Rebuttal: Obtain a detailed estimate from a local contractor that highlights why the insurer's offer fails to meet local code or manufacturer installation requirements.