Staff Writer, @DooleyNotedLaw
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After Hurricane Beryl made landfall in Texas on July 8, 2024, thousands of Houston residents found themselves battling not just storm damage but also their insurance companies. When insurance companies wrongfully deny claims for storm damage, policyholders have several legal remedies available. Bad faith insurance claims can be filed when an insurance company fails to handle a claim fairly, and in a successful bad faith claim, the policyholder may recover the full amount of benefits that should have been paid under the policy.
💡 Pro Tip: Take pictures and video of all damage immediately after a storm hits. Don’t throw anything away until your insurance adjuster tells you, and keep receipts for all temporary repairs to prevent further damage.
Feeling overwhelmed by a storm damage claim denial? Let Dooley Noted steer you in the right direction. Get in touch with us today at 972-528-9914 or contact us to explore your options and ensure your rights are protected under Texas law. Don’t let the insurance company’s decision be the end of your journey.
Texas law provides strong protections for policyholders dealing with unfair insurance practices. The Texas Insurance Code Chapter 541 prohibits unfair methods of competition and deceptive acts, requiring insurers to act fairly and transparently in handling claims. When you work with a storm damage lawyer in Houston, TX, they can help you understand how these protections apply to your specific situation. Most states have their own rules, often by statute, regarding the types of damages available in bad faith insurance claims.
The Unfair Claim Settlement Practices Act specifically prohibits insurers from knowingly misrepresenting facts, failing to acknowledge communications, or refusing to settle when liability is clear. "Knowingly" is defined as actual awareness of the falsity, unfairness, or deceptiveness of the act or practice. This means insurance companies cannot simply ignore your claim or provide baseless reasons for denial.
💡 Pro Tip: Document every interaction with your insurance company, including dates, times, and names of representatives. This creates a paper trail that can be crucial if you need to prove bad faith practices later.
Understanding the legal timeline is crucial when dealing with storm damage claims. Texas law sets specific deadlines that insurance companies must follow, and failure to meet these deadlines can result in significant penalties. A storm damage lawyer in Houston, TX can help ensure your insurer follows these requirements and hold them accountable when they don’t.
💡 Pro Tip: Mark your calendar with all relevant deadlines as soon as you file your claim. Insurance companies often hope policyholders will miss critical filing dates, which can jeopardize your ability to recover damages.
When facing an unfair insurance denial, you have multiple paths to resolution. The appraisal process begins with you and the company each hiring an appraiser, who then choose a third appraiser as umpire, with binding decisions on damage amounts. However, before entering this process, consulting with a storm damage lawyer in Houston, TX at Dooley Noted can help you understand whether appraisal is your best option or if pursuing a bad faith claim would yield better results. If you believe your insurance company didn’t pay enough to cover your damages or unfairly denied your claim, you have options beyond accepting their decision.
💡 Pro Tip: Before agreeing to the appraisal process, understand that you’re responsible for your appraiser’s expenses and half of the umpire’s costs. Sometimes pursuing a bad faith claim can recover these costs as part of your damages.
Many Houston property owners don’t realize the full extent of damages they can recover when an insurance company acts in bad faith. Typical recoverable damages in insurance bad faith claims include not just the amount of compensation wrongfully denied plus interest, but also any financial losses resulting from the insurance company’s actions. When you need to consult a lawyer about your storm damage claim, understanding these potential damages helps you make informed decisions about pursuing legal action.
One of the most powerful remedies available to Texas policyholders is the possibility of treble damages. Insurers can be liable for treble (triple) damages if they knowingly violate Chapter 541 provisions. This means if your insurance company knowingly violated Texas insurance law and you suffered $100,000 in actual damages, you could potentially recover $300,000. Additionally, financial penalties payable to the insured person by statute can significantly increase your recovery beyond just the claim amount.
💡 Pro Tip: Keep detailed records of all financial losses stemming from the denial, including credit damage, lost business income, or costs of alternative housing. These consequential damages can often exceed the original claim amount.
Public insurance adjusters are licensed by TDI and understand the claims process to negotiate settlements on your behalf. However, there are important limitations and costs to consider. Public adjusters can charge up to 10% of the total claim settlement amount, not just the disputed portion. Understanding your insurance claim dispute options, including whether to hire a public adjuster or attorney, can make a significant difference in your recovery. A storm damage lawyer in Houston, TX can often achieve better results through bad faith litigation than a public adjuster can through negotiation alone.
Texas law places strict limitations on what public adjusters can and cannot do. Public adjusters cannot practice law, provide legal advice, or get referral fees from attorneys or contractors. Additionally, Texas law prohibits public adjusters from acting as contractors and contractors from advertising they’ll handle insurance claims. Even if your insurance company doesn’t increase its offer after you hire a public adjuster, you might still have to pay their fee. This is why many property owners choose to work directly with attorneys who can pursue bad faith claims if necessary.
💡 Pro Tip: Before signing with a public adjuster, get a written fee agreement and ask what happens if they can’t increase your settlement. Unlike attorney’s fees in bad faith cases, public adjuster fees aren’t recoverable from the insurance company.
Houston residents facing storm damage denials often have similar questions about their rights and options. Understanding the Texas Insurance Code Chapter 541 and your remedies under state law can help you make informed decisions about how to proceed with your claim.
💡 Pro Tip: The Office of Public Insurance Counsel provides free assistance at 1-877-611-6742 or help@opic.texas.gov for general insurance questions before you hire professional help.
When insurance companies act in bad faith, policyholders have the right to take legal action. Working with an experienced storm damage lawyer in Houston, TX ensures you understand all available remedies and pursue the maximum compensation allowed under Texas law.
💡 Pro Tip: Don’t wait until the last minute to seek legal help. The sooner you involve an attorney, the better they can preserve evidence and build a strong case for bad faith.
Bad faith includes knowingly misrepresenting policy provisions, failing to promptly explain claim denials, refusing to pay without reasonable investigation, or failing to acknowledge communications about your claim. Even if a denial is ultimately made, it should be properly explained and supported by credible evidence.
In addition to the full amount of benefits that should have been paid under your policy, you can recover attorney’s fees, 18% annual penalty interest for delays beyond 60 days, and any financial losses resulting from the insurer’s bad faith actions. If the insurer knowingly violated Chapter 541, you may recover up to three times your actual damages.
This depends on your specific situation. The appraisal process can resolve disputes about damage amounts but won’t address bad faith conduct. You can also ask for alternative dispute resolution, which uses mediation with a neutral third party. If you’re not satisfied with these outcomes, you have the right to sue the insurance company in court.
Public adjusters negotiate with insurance companies but cannot provide legal advice or file lawsuits. They charge up to 10% of your total settlement, which you pay regardless of the outcome. Attorneys can file bad faith lawsuits, potentially recovering treble damages and attorney’s fees from the insurance company, meaning you may not pay anything out of pocket.
Time limits vary depending on your policy and the type of claim. For TWIA claims, you have one year from the date of loss. However, documenting bad faith conduct should begin immediately. Contact the Texas Department of Insurance at 800-252-3439 to file a complaint, and seek legal counsel promptly to preserve all your rights under Texas law.
When Houston area property owners face wrongful claim denials after hurricanes, floods, or severe storms, understanding your legal remedies is just the first step. The attorneys at Dooley Noted have extensive experience helping Texas residents recover full compensation under the state’s bad faith insurance laws. From pursuing penalty interest and attorney’s fees to seeking treble damages for knowing violations, having skilled legal representation ensures insurance companies are held accountable for their unfair practices. Don’t let your insurance company’s denial be the final word on your storm damage claim.
Don’t let a storm damage claim denial cloud your future. Reach out to Dooley Noted for clear guidance and assertive action. Call us at 972-528-9914 or contact us to ensure your rights are upheld and your claim is effectively managed.
The contents of this post, and the posting and viewing of the information on this post, should not be construed as, and should not be relied upon for, legal advice in any particular circumstance or fact situation. An attorney should be contacted for advice on specific legal issues.
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