A Comprehensive Guide to Bad Faith Insurance Practices in Texas

Insurance companies owe a duty of good faith to all their customers, especially homeowners who diligently pay all their premiums and expect their insurers to help them with a fair and speedy settlement when they experience an unwanted incident.

However, insurers sometimes may not fulfill their duty of good faith and can engage in bad practices. Seeing your insurance claim rejected for no apparent reason can be stressful and emotionally overwhelming.

Therefore, it is always wise to engage with a public insurance adjuster ?before filing a claim. These professionals can help you with all of your claim needs, negotiate with the insurer on your behalf, and ensure that the insurance company provides a fair settlement. ?

That said, you should also be aware of bad faith practices regarding insurance claims ?and settlements. Here’s a guide that explains everything you need to know.

Examples of Bad Faith?

If you file a legitimate claim with your insurer, they are bound by duty to provide an adequate settlement according to the limits defined in your insurance contract. If the insurance company is creating unwanted obstacles to avoid paying the compensation you deserve, you can hold them accountable for bad faith.

You may file a bad faith claim if your insurer engages in the following practices:

·?Delays claims without any legitimate explanation.

·?Hasn’t acknowledged receipt of your claim within the stipulated time?frame.

·?Deliberately stalls your claim investigation.

·?Deliberately tries to settle your claim for significantly less than the actual worth of the claim.

·?Issues a payment without giving out details.

·?Uses failure to submit forms as a reason for denial without requesting any forms.

·?Asks for excessive or unnecessary documentation.

·?Refuses to pay contractors for work that was previously approved.

Providing Evidence of Bad Faith

Remember that the burden of proving bad faith practices will always fall to the policyholder. In Texas, you can provide bad faith in two ways:

·?Common Law Bad Faith Claim

·?Statutory Bad Faith Claim

With the common law bad faith claim, you’d be required to show that the insurer denied a claim even though the liability was established. Only a policyholder can pursue a common law bad faith claim, not a third party.

When using the statutory bad faith claim, you or your attorney must prove that the insurance company violated a clause or did something prohibited in Chapter 541 or 542 of the Texas Insurance Code . These chapters are particularly important as they prevent insurers from engaging in any “unfair or deceptive acts or practices in the business of insurance.”

Some examples of illegal actions in the Texas Insurance Code ?are the following:?

·?Misrepresenting material facts or any policy provision in the insurance contract.

·?Failing to provide a reasonable settlement where liability has been reasonably established.

·?Failing to act in good faith to reach a swift settlement.

·?Failing to provide any reasonable explanation for claim denial.

·?Not providing an explanation for a reduced settlement offer.

·?Denying or refusing the settlement without a thorough investigation

·?Demanding unnecessary documents such as income tax returns as a condition for settlement.

·?False advertising.

The best way to prove bad faith is to keep all the records and documentation. It is important to document all the conversations you have with the insurer. Keep letters and emails and request the insurer to communicate with you in writing wherever and whenever possible.

In addition, you should always have a reliable public insurance adjuster in TX?who can help you with all your claims needs. An experienced adjuster will help you document the damage, assist in comprehending your insurance policy, negotiate with the insurer on your behalf, and educate you on bad faith insurance practices.

Under state law, if you’re successful in proving that the insurer has acted in bad faith, you can recover the cost of your claim, including interest, court costs, attorney fees, and the cost of the mental suffering and anguish caused by the process.

Under Texas law, you can collect up to three times the amount of your actual damage, provided you successfully prove that the insurer violated Chapter 541 of the Texas Insurance Code.

Why Hire Public Insurance Adjusters in Texas?for Property Damage Claims?

Property damage claims can be difficult and stressful to deal with by yourself. Having a reliable public adjuster by your side can help you throughout the process. These trained professionals can assist in damage evaluation, creating comprehensive claims, and filing paperwork correctly with the insurer. They can also negotiate settlements with the insurance company when needed.

If you’re looking for a reliable public insurance adjuster in Texas?to handle your claims, you can’t go wrong with Morgan Elite Specialist Services. The company has significant expertise in dealing with complex residential and commercial insurance claims and goes above and beyond to help its clients get fair and swift settlements.?

They have over 75 years of combined experience, and their insurance appraisers and public adjusters work diligently and efficiently to evaluate your damages, help you document everything, and prepare a substantial insurance claim that increases your chances of a favorable outcome.

You can visit their website for more information?on Mass Tort Settlement , forensic accounting services ,?claims handling services ??or contact them today.

Please note that Morgan Elite Specialist Services only provide public adjusting services. They are not lawyers or attorneys. It is essential to consult with a lawyer to learn more about your legal rights under the Texas Property Damage Statute of Limitations or any other relevant legislation.