The court denied the insurer’s motion to dismiss the insured’s breach of contract claim, but granted the motion to dismiss without prejudice the bad faith claim. Terrazas v. State Farm Fire & Cas. Co., 2025 U.S. Dist. LEXIS 173920 (D. Colo. Sept 5, 2025).

The plaintiff, Alejandro Garcia-Terrazas, had a policy issued by State Farm. The policy covered the abrupt and accidental discharge or overflow of water.

Terrazas noticed a water discharge or overflow in the kitchen. The water caused damage to the floors, cabinets, and other items in the kitchen. A claim was filed with State Farm. State Farm investigated but refused to pay the full value of the claim.