Bad Faith Insurance Claim Laws in Texas

Bad faith insurance claim laws in Texas are there to protect you when you are vulnerable. If you believe your insurance company is acting in bad faith, it can be hard to know what to do. A local attorney can clarify your rights as a homeowner and the insurer’s responsibility to you as a policyholder. 

You do not have to deal with the details and minutiae of your insurance claim alone. Insurance companies typically operate with their bottom line in mind. When you hire a Corpus Christi insurance claims lawyer to represent you, they will fight for your best interests and the compensation you deserve.

What Constitutes Bad Faith Insurance Practices According to Texas Law?

Bad faith insurance tactics include anything an insurance company does that violates its agreement to handle claims fairly. These tactics can include actions that are intentionally unfair, misleading, false, or otherwise deceptive. Texas Insurance Code § 541.060 outlines some of these tactics.

It can be hard to identify bad faith practices on your own. It can be equally hard to know what to say and what not to say when dealing with an insurance adjuster. When a lawyer handles your case, they will handle the entire claims process for you. While they do, you can focus on relocating if necessary and caring for your family. 

Examples of Bad Faith Insurance Practices and Tactics

Failure to investigate your claim promptly is a common bad faith practice. An insurance provider might also purposely undervalue your claim. Insurance companies are businesses—they earn money when they collect premiums and lose money when paying a valid claim.

Additional bad faith practices include:

• Intentionally misrepresenting the terms of your policy
• Failing to make a good-faith effort to settle your legitimate claim
• Failing to notify you of a denied claim promptly
• Creating unreasonable delays when handling your claim
• Refusing to provide full compensation when warranted
• Demanding unnecessary financial data, like tax records
• Misrepresenting all or part of your policy and coverage

You can fight to hold the insurer financially accountable for acting in bad faith. If your insurance carrier engages in any of these acts, your bad faith insurance lawyer will clarify your legal options.

Compensation You Can Qualify for With a Valid Insurance Claim

You can handle your insurance claim independently. However, doing so involves a plethora of moving parts. When a lawyer represents you, they can carefully assess your case and fight for the fair settlement your policy entitles you to recover. Based on the specific details of your policy, you could receive compensation for damage or destruction of your:

• Primary dwelling
• Lawn and landscaping
• Theft and vandalism
• Outbuildings and structures
• Furnishings and home contents
• Clothing and shoes
• Electronics and other property

Your lawyer will fight for compensation for all covered losses and help you avoid having the insurance company undervalue or underpay your claim. 

What Happens When You Appeal a Denied Claim or a Lowball Offer?

Your insurance company may have many reasons to deny your claim. You do not have to accept a claim denial or a lower offer than you deserve without a fight. 

A bad faith insurance attorney can help you gather additional evidence that strengthens your claim. They can identify any unfair tactics affecting it and keep fighting for fair coverage.

Valid Reasons Your Insurance Company Can Deny Your Claim in Texas

Each party in an insurance contract is responsible for upholding their end of the agreement. Your primary responsibility is to pay your premiums in full and on time. Not doing so relieves the insurer of its responsibility.

The insurance company may also deny your claim if you file it late, it does not have sufficient evidence or other documentation, or your policy excludes the cause of the damage. If you have met all your responsibilities and your insurer still does not compensate you, a lawyer can help you fight back.

You Do Not Have to Fight a Large Insurance Company Alone

Few things can be as frustrating as struggling to get financial compensation from an insurance policy you purchased. If you believe your insurance company is acting in bad faith, consider hiring an insurance claims lawyer to manage your case. 

They will:

• Review your policy in detail, including any optional or additional coverage
• File your claim on time and within the guidelines of your policy
• Assist you in documenting your covered losses
• Obtain, complete, and submit insurance claim forms 
• Handle all verbal, written, and electronic communication 
• Keep you updated on your claim and the negotiation process

Many insurance claims lawyers will accept your case on contingency. They will receive compensation only when you do, and you will owe no attorney fees if you do not receive compensation. 

Filing Deadlines and Other Time-Sensitive Insurance Claims Matters

Texas’ Homeowners’ Bill of Rights ensures the insurance company handles your claim properly and treats you fairly. To avoid unwarranted delays in handling your claim, it requires the insurance company to:

• Acknowledge their receipt of your claim within 15 days
• Approve or deny your claim within 15 days
• Make payment on your claim within five days of its approval

Under certain circumstances, the insurer can extend each of these deadlines. The lawyer handling your case will fight to keep your case on track. Their familiarity with insurance laws and claims in Texas can streamline your case and give you peace of mind. 

Get Help Fighting Back Against Bad Faith Insurance Tactics in Texas

Bad faith claim laws in Texas protect you from the costs and frustration of a lowball offer. If you are struggling to get fair compensation from your insurance company, our law firm can provide you with effective legal representation. 

At Carrigan & Anderson, PLLC, we will handle the initial filing of your claim or help you file a well-documented and effective appeal. Find out how hard we will fight for you by contacting our consultation team today.