The only dispute was as to the amount of the loss. There is no evidence to show that the parties improperly proceeded with the appraisal in the absence of a concession of liability. That appraisal binds the parties to the determination of the amount of loss sustained by plaintiff because of the storm. Either party had a right to utilize an appraisal. Defendant has paid the amount of loss as determined by the appraisal.
Defendant is entitled to summary judgment on the breach of contract claim.
An insurer who acts in bad faith toward an insured in a matter arising under an insurance policy may be liable to the insured for interest on his claim at the prime rate plus three percent, punitive damages, court costs and attorney fees. An insurer engages in bad faith when it denies benefits under a policy without a reasonable basis for doing so and knows or recklessly disregards its lack of such reasonable basis. A determination of bad faith does not require proof that the insurer was motivated by a dishonest or improper purpose. Recklessness or acts undertaken by the insurer with a reckless indifference to the interests of the insured can support a finding of bad faith. A claimant, however, must prove bad faith by clear and convincing evidence.