N.C. Federal Judge Awards Policyholders $63,962 in Attorney’s Fees, Citing Insurer’s Bad Faith

ELIZABETH CITY, N.C. — A North Carolina federal judge has awarded $63,962 in attorney's fees in a hurricane coverage action after finding that the insurer acted in bad faith by refusing to pay a claim for flood-related damages under a Standard Flood Insurance Policy.

On Aug. 23, Judge Terrence W. Boyle of the U.S. District Court for the Eastern District of North Carolina further noted that the insurer, Allstate Insurance Co., has demonstrated an unwarranted refusal to fully resolve the coverage dispute.

Gary and Rebecca Woodson sued Allstate Insurance Co. in North Carolina state court after the insurer denied their …