What to Do if My Hurricane Damage Claim Is Underpaid?

The stress and worry can be overwhelming for homeowners in the aftermath of a hurricane. Dealing with catastrophic losses from a natural disaster can severely impact your finances, and the insurance policies you rely on might ultimately disappoint you. Even if your claim is not denied, your insurer could offer you far below what you believe your case is worth. 

If your hurricane insurance claim is underpaid, you should immediately seek the help of a Corpus Christi hurricane damage lawyer. Your legal counsel can identify the reason for the unreasonable underpayment and guide you through your next steps. 

Refuse to Accept Underpayment of Your Damage Claim

Many property owners make the mistake of accepting the offered settlement amount from the insurance company immediately. When the insurance company responds to your claim, they often frame it as if it is the official value of your claim. You have the right to reject the insurance adjuster’s valuation and demand more money. 

When you get an answer from the insurance company regarding your claim, it typically comes with a waiver and settlement agreement that prevents you from asking for additional compensation later. If you sign that agreement and accept their settlement offer, you will not be able to obtain the full value of your claim later. 

Insurance companies will aggressively push lowball settlement offers, especially when they know the property owner has not yet hired legal counsel. They may even engage in bad faith practices, such as refusing to investigate your loss or failing to give a reason for their low settlement offer. 

Get Answers from Your Insurance Agent or Company

Your insurance company is required to provide you with a reason when they deny your claim entirely, but they do not always offer details when their settlement offer is unreasonably low. You have the right to contact your insurance agent or company and ask for the reason why you received an underpaid claim. 

In some cases, the reason might be straightforward. For example, you might have forgotten to include documents they requested regarding the cost of repairs for your home or business. These issues are often resolved with the help of an attorney. 

Unfortunately, your insurance company might not offer you any details on the inadequate settlement while also refusing to increase their offer. At this point, it may be time to consider bad faith legal action against the carrier. 

Look For Evidence of Bad Faith Practices

Insurance providers are required to act in good faith when considering your hurricane damage claim. This does not mean they are obligated to pay you under your insurance coverage limits, but they are prohibited from denying your claim or offering a low settlement in an unfair manner. 

There are many ways your insurer could act in bad faith as described in Texas Insurance Code § 541.060. Often, it involves the refusal to discuss your claim at all. They might not acknowledge receiving it, wait months to make a decision, and then fail to respond to your efforts to reach them to discuss the matter. Your attorney can help you with your bad faith insurance claims in Texas. 

Review the Terms of Your Insurance Policy

While it is true that homeowners policies cover hurricane losses most of the time, there are some situations where benefits are not available. This is because a hurricane is a collection of hazards that can damage your property, including wind, flooding, and even fire. The standard homeowners insurance policy will cover some of these losses, but not others. That makes it vital to review the exact language of your policy to see what is covered. 

For example, many companies require insurance policyholders to purchase an additional rider for coverage related to water or flood damage. If you opt out of this voluntary extra coverage, you will not be entitled to compensation based on that aspect of your claim. The end result could be that you get the full value of the damage caused by wind or hail, but your flood damage will go unpaid. 

What can be especially frustrating is that these policies often include conflicting language. One section of the document might seem like it covers all of your losses, while another section could exclude them. An attorney can help you get to the bottom of exactly what your insurance provider is required to pay for. 

Hire an Attorney to Handle Your Property Damage Claim

Dealing with insurance companies can be frustrating, especially when you are also facing the catastrophic loss of your home or place of business. An underpaid hurricane damage claim for your business could put your entire operation at risk. Likewise, when you are facing an underpaid hurricane damage claim for your home, the low offer might prevent you from fully repairing your residence. 

The good news is that a Texas hurricane damage claims lawyer could take the stress of responding to an underpaid insurance claim off of your shoulders. By taking on this complex legal process, your attorney frees you up to focus on cleaning up and rebuilding your property. 

There are countless things that can go wrong when battling over a hurricane loss with your insurance company. Whether you made a mistake when putting the documentation together or the insurer is acting in bad faith, the right insurance lawyer could make the strongest case possible for an increase in compensation. 

Our Hurricane Damage Claims Attorneys Will Fight for Your Full Claim Value

No one should have to deal with the destruction caused by a hurricane on their own. If you are struggling to get a fair settlement from your insurance carrier, the right legal team could help you maximize your recovery. 

You have the right to demand more from your insurance company after being underpaid on your hurricane damage claim. At Carrigan & Anderson, PLLC, our attorneys have a track record of success when it comes to getting more from the insurance company. Contact us as soon as possible to discuss your legal options during a free consultation.