State Farm Fire and Casualty Company, Cross-Appellant v. George Balmer and Margaret Balmer, Cross-Appellees

VANCE, Circuit Judge:

George and Margaret Balmer appeal from the grant of judgment notwithstanding the verdict in favor of State Farm Fire and Casualty Company, (“State Farm”), on the Balmers’ bad faith failure to pay claim. For the reasons stated below, we affirm.

I

On Sunday, April 13, 1986, a fire demolished the farm house of George and Margaret Balmer located near China Grove, Alabama. The house was insured by a policy of insurance with State Farm which was scheduled to expire the next day. After investigating the claim, State Farm paid the dwelling coverage to the mortgagee, denied contents…