Lauro ACEVES, Jamie Aceves, Plaintiffs-Appellants, Cross-Appellees, v. ALLSTATE INSURANCE COMPANY, Defendant-Appellee, Cross-Appellant

BRUNETTI, Circuit Judge:

Lauro and Jamie Aceves (the Aeeveses) appeal from a judgment against Allstate Insurance Company (Allstate) for its failure to pay a claim on their homeowners’ policy. The Aeeveses argue that the district court, after conducting a bench trial, understated their contract damages, overstated their liability for Allstate’s costs, and gutted their bad faith claim by its evidentiary rulings at trial. Allstate cross-appeals from the district court’s denial of summary judgment on their contract claim.

I. Introduction

A. Facts

The Aeeveses’ coverage claim arises as a result of…