Texas law sets deadlines for insurance companies to act after you’ve filed a property damage insurance claim. The Property Insurance Company Must:
Jan. 24, 2023
3 Common Signs of Bad Faith Insurance Practices: What to Look out For
If you are a Houston area home or business owner that has had your water, wind, fire, or hail damage insurance claim denied you may have been the victim of bad faith insurance adjustment practices. Texas law regulates insurance companies but insurance companies break the law when they deny your business, personal, or homeowner property claim in bad faith. Look for these signs of insurance company adjusters wrongfully denying a claim.
Insurance companies are legally required to thoroughly review a property damaged by water damage. However, insurance adjusters may very well make the review process as difficult as possible and work to delay any coverage to follow or even neglect to inspect the property. Common property damage insurance claims for a home or business occur when a flood has destroyed the structure or the structure has been damaged or destroyed by water such as water from burst pipes. Claims adjusters and their underwriters should inspect the damage to determine the extent and cost of repairs before they can even begin to deny a claim for loss. In some cases, the adjuster may even fail to inspect the damaged property before it is determined to be water damaged and accepted as a loss.
Failing to inspect the property
Not documenting all damage to property
Denying a valid insurance claim
Texas law protects policyholders from being robbed of their rights. When a property owner files a valid claim with their insurance company they have a legal right to investigate and object to any settlement amount that they believe to be too low.
What to Do if You've Been the Victim of Bad Faith Insurance
In Texas, you have the right to take your claim to court and have your claim settled by a jury. Learn more about your rights at the Texas Department of Insurance website. If you are a Houston area business owner and you've been the victim of bad faith insurance adjusters and don't want to give up your rights, look for the red flags of bad faith insurance adjustment and respond accordingly.
If you are denied a business or personal property claim on the basis of a lack of proper construction, delay, or a common sign of bad faith insurance adjusters may have abused their authority and you may have been the victim of a shakedown. Report the insurance company to the Texas Department of Insurance.
If it’s taking a long time for your insurance claim adjuster to respond to your insurance claim questions, chances are you may be on your way to having your property insurance claim denied. Texas law provides deadlines for when your insurance company must accept or deny your claim.
From the outset, it is important to understand that every case of damage from a hurricane has its unique circumstances that must be assessed individually. Assuming you have an insurance policy, your rights and responsibilities with respect to coverage should be specified in your policy.