Can I Sue an Insurance Company in Texas?

You can sue an insurance company in Texas if you can show they acted in bad faith, meaning they intentionally delayed or denied your claim to circumvent paying you fairly. You will need to document the reason for this with evidence and show that the company did not adhere to its contractual obligations to you.

The process of filing a lawsuit against an insurance company is complex, and working with a local Corpus Christi insurance claims lawyer familiar with the process and the available strategies is very important.

Have Grounds for Suing the Insurance Company

There are several ways you may be able to seek legal action against an insurance company. In short, to bring a claim to court, you must demonstrate that the insurance company violated the law or was negligent in some way. Consider the following strategies that may be applicable depending on your situation:

• Bad faith claims: A bad faith claim indicates that the insurance company denied your valid claim without having a verifiable reason for doing so. This may include denying the claim outright, delaying making a decision, or purposefully underpaying the claim to you. In personal injury claims, your Corpus Christi bad faith insurance claim lawyer may use this step to seek action against an insurance company that denies a valid claim for you, the victim, as well.
• Breach of contract: You may be able to file a lawsuit against the insurance company in situations where you can show the insurance company failed to pay a valid claim, as they stated they would, in their contract. They violated policy terms.
• Deceptive Trade Practices Act: You may seek legal action against an insurance company if you believe it used unfair tactics within the insurance business. That may be misleading consumers about what they offered or would protect against, for example.
• Texas Insurance Code Violations: In some situations, you may be able to file a claim against the insurance company if you can show they violated the state’s insurance code, such as misrepresenting policy terms or engaging in unfair settlement practices.

In each of these situations, the burden of proof is on you, and that can make it challenging for you to determine what information is necessary to build a claim. However, if you are working with an attorney, they will utilize every aspect under the law to help you build a case like this.

When Should You File a Lawsuit Against an Insurance Company

To know if you should file a lawsuit against an insurance company, meet with an attorney who can guide you as a first step. Not every situation in which the insurance company denies your claim is an example of bad faith or a violation of the law. However, if you have a dispute, and an insurance company is unwilling to listen to you, it may be time to seek legal guidance.

Some examples of reasons to seek legal action in a personal injury claim or against your own insurance company include:

• The insurance company denied a valid claim. They did not provide a clear, acceptable explanation for why they denied the claim.
• The insurance company misrepresented the policy. They did or said something that made you think you had specific coverage that they did not provide to you.
• The insurance company is delaying the process of filing the claim, issuing payment, or approving it. They are taking an unreasonably long time to act, which could indicate they are trying to push you over the statute of limitations.
• The insurance offered a settlement, but the amount is well below your losses, especially for economic losses such as repair or replacement costs.
• The insurance company was, in some way, deceptive or unfair in its communication with you, resulting in it not paying benefits.

An experienced attorney will review the evidence you have and find any additional information to validate your case. Your insurance company’s policies, communication with you, and statements made to others may help build your case.

Your attorney will understand the violations made against contractual obligations and your rights to seek legal action. You can also get help with an insurance complaint with the Texas Department of Insurance.

What You Need to Show to Sue an Insurance Company

Before you can file a lawsuit against an insurance company, such as for a bad faith claim, you must demonstrate that you have a valid claim against them. It is not enough that the insurance company denied your claim. You must also demonstrate that they violated the law in doing so in some way. In most cases, you will need to show the following:

• You had a valid insurance contract at the time of the incident. If your insurance contract expired or you failed to make a payment, it can affect your ability to pursue legal action.
• You were owed benefits for the specific type of losses you have under the policy.
• The insurance company refused to pay you and failed to provide a reasonable explanation for its refusal.
• You suffered damages as a result of the company denying you the benefits.

When you seek to pursue a claim like this, gather as much evidence as possible to use on your behalf, including denial letters, policy documentation, and payment showing you kept the policy up to date. You also need to demonstrate phone call logs, inspection documentation, reports that clarify the damages you have, and any type of estimates for the losses incurred.

All of these details help to demonstrate losses and prove that the insurance company owed you money.

Seeking Legal Action with the Help of an Attorney Matters

If your insurance company failed to pay a claim you made against your policy and you believe they did so unfairly, seek guidance from an attorney to pursue legal recovery of your losses.

If the insurance company for an at-fault party failed to pay you damages you know you were owed, file a lawsuit against the insurance company. Your Corpus Christi insurance claims attorney from Carrigan & Anderson, PLLC, will help build your case.