The problem is how they have handled your claim all along.
Your insurer ignored deadlines, kept changing its reasons, and made an offer with no basis behind it. Koala organizes the record of how your claim was handled and cites the duties it fell short of, so the pattern is documented, dated, and hard to wave off.
Free while in beta · Koala is not a law firm
What you're up against
Bad faith is rarely one bad letter. It shows up as a pattern: unreturned calls, moving goalposts, and offers that ignore the evidence. That pattern is powerful, but only when it's laid out as a clear, dated timeline against the duties your insurer actually owes you.
Backup that does the work.
Documents the conduct
Koala organizes every letter, call, and offer into a dated timeline that makes the handling pattern visible.
Cites the standard
It references the good-faith and prompt-handling duties that apply in your state, so the record is grounded, not just a complaint.
Builds the record
You get an organized file and a firm letter, ready to send, or to hand to an attorney if you decide to escalate. Koala is not a law firm.
Bad faith disputes questions
The things worth knowing before you answer your insurer.
What actually counts as bad faith?
Broadly, an insurer failing to deal with you fairly and honestly: a denial with no reasonable basis, an offer with nothing supporting it, an investigation that never really happened, a claim slow-walked without cause. Every state sets its own standard and its own remedies.
Is one bad letter enough?
Rarely. Bad faith is usually a pattern (unreturned calls, shifting reasons, moving goalposts), and a pattern is only visible when the handling is laid out as a dated timeline against the duties the insurer actually owes you.
Do I need a lawyer for this?
You may well, and Koala will tell you so rather than pretend otherwise. Koala is not a law firm and does not give legal advice. What it does is build the organised, dated record, which is the thing an attorney needs on day one, and the thing most people arrive without.
Where else can I take this?
Your state's department of insurance regulates claim handling and accepts policyholder complaints for free. Filing one takes minutes and creates a written record with a regulator the insurer has to respond to.
Don't recognise a word in your letter? Look it up in the glossary to find every term, and where it costs you money.
Before you reply to them, read this.
Everything below is free and requires no account. A claim answered from a position of knowing how the process works is a different claim.
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Reference
The glossary
Actual cash value, proof of loss, the appraisal clause: what each term means and where it bites.
- Read it
Guides
Playbooks for a live claim
Documenting damage before you file, and checking a total-loss valuation line by line.
- Read it
How it works
What Koala actually does
The six stages, what you approve, and what leaves your hands, all before you hand it anything.
See what you're actually owed.
Upload your documents and Koala gets to work. You approve everything before it's sent to your insurer.