Hurricane season just started (June 1st) and residents all across the McAllen metro area and Greater  Rio Grande Valley should begin preparing for these potential storms. While the 2017 Atlantic hurricane season forecast has predicted a lower number of storms than historical averages, it is still always in the best interest of homeowners to take the necessary precautions and steps to ensure that they are protected.According to NOAA’s Hurricane Research Division statistics, the U.S. averages one to two hurricane landfalls each year. While these odds may seem to work in your favor, a hurricane, or even tropical storm for that matter, can prove to be a devastating event both emotionally and financially.

At the bad faith insurance law offices of Millin & Millin in McAllen, Texas we believe that the best way to avoid a bad faith insurance claim is to recognize what your rights are and what your insurance does and does not cover. In order to be fully prepared for a disaster, there are a number of elements to consider.

Items to consider before a storm strikes.

1. Understand what your homeowners insurance policy covers.

The most important step you can take to ensure that your home is effectively covered is to carefully read through and understand what your policy covers. While this is a simple action, it is often the most neglected.

Understandably, insurance policies are full of technical jargon that can be difficult to understand for those unfamiliar with the language. But, unfortunately, your insurer will not accept this as an excuse. Contact a legal expert with experience in insurance law to help you better understand your coverage. You don’t want a disaster to strike only to find out you weren’t covered.

2. Standard homeowners’ insurance generally does not cover flood damage.

One of the most damaging effects of a hurricane or tropical storm is flood damage. Flood water can damage your property, uproot trees, and destroy your house’s interior.

Flood insurance is generally a separate policy that needs to be purchased alongside your traditional coverage. It should be noted, however, that there is a generally a waiting period (30 days) before the policy kicks in.

Waiting until the last moment before a hurricane reaches landfall to purchase this additional insurance rider can mean you will still be responsible for damages caused by flooding.

3. Take inventory of your property.

A best practice, you should take a thorough inventory of everything you own and consider whether you have the appropriate coverage in case of the loss of those items. This can help you to identify the value of the items and any potential gaps in your policy.

You should also take pictures of your valuables, and if feasible, record with video. In fact, “touring” your home and video recording it in its current condition - even if the potential for natural disaster is minimal - is a great strategy to stop bad faith insurance.

4. Know your deductibles.

An unreasonable deductible can leave you high and dry.

Insurers in coastal areas generally offer separate deductibles for hurricanes and windstorms. Depending on the circumstances of the storm and the various scenarios that can get played out, a high deductible can leave you paying thousands of dollars before the insurance even kicks in.

Have you begun saving for this amount? Or does it make more sense to increase your premium and coverage to lower your deductible?

5. Prepare for a storm.

Aside from insurance considerations, you should also take some real world actions in order to limit the amount of damage that can occur to your property and home. Some of the most important steps you can take to protecting your house include:

• Clean your yard: Secure items that can be easily strewn about by high winds and cut down damaged tree branches.
• Secure doors and windows: Add an extra deadbolt to keep your doors closed and utilize plywood to protect your windows.
• Inspect your roof: Check for missing or cracked shingles, as well as loose nails, and fix problem areas.

The types of damage a hurricane or tropical storm can cause.

Hurricane damage can be varied and affect your home and property in a number of ways. Recognizing where there is a high probability of damage can help you to take the proper steps to securing and protecting your house. The following types of damage are frequently caused by hurricanes:

• Roof damage: Roofs take the brunt of damage during a hurricane because of high winds and rain. Certain roof types can catch the wind and be torn from the walls. In instances where roofing materials are unable to withstand the gale winds, water can begin to leak into your home and cause interior roof damage.
• Window damage: High winds can easily launch patio furniture, lawn ornaments, tree branches, as well as uplift trees, and send them crashing into your home and windows.
• Siding and gutter damage: Siding can be damaged by “projectiles” tossed about by hurricane winds which can lead to leaking and water damage within the home. Gutters that are ripped from a home can also cause internal water damage.
• Garage door damage: Garage doors are susceptible to a hurricane’s high winds and can easily be breached. Once broken, winds can cause severe pressure inside the home and cause roof damage and home foundation issues.
• Septic tanks: For individuals living in the rural areas of the Rio Grande Valley, septic tanks can prove to be disastrous during a hurricane. A power outage or issues caused by land flooding can cause the system to break and backup.

What to do after a hurricane.

If you, unfortunately, have to deal with the results of a hurricane, there are a number of steps that you can take after a hurricane to ensure that your insurance claim is properly handled.

1. Deal with the damage.

While you should NOT commence fixing the damage yourself, you SHOULD take the reasonable steps necessary to stop further damage to your property. This can include covering up areas where water is leaking in or removing debris from broken windows. Insurers will use anything they can against you to deny a claim and might argue that you caused some of the damage if you do not properly take care of the limiting the situation.

2. File a claim immediately.

After a major hurricane, insurance companies are bombarded with calls and claims, and often set deadlines on claimants. Don’t wait to make a claim. This also ensures damage is adequately taken care of in a reasonable amount of time rather than allowing it to continue growing.

3. Take notes and document all interactions with insurance agents.

Staying informed and documenting all interactions with your insurance company can help to protect you in the case of bad faith tactics or a claims denial.

Also, just as you should take images of your property and valuables before an event, you should also capture images of the damage after the catastrophe has taken place. These detailed shots (and video when possible) are the perfect evidence to show your insurer.

Let the bad faith insurance lawyers of Millin & Millin protect you and your property from bad faith tactics.

If you are having to file an insurance claim, it’s likely due to the fact that you have just suffered through a terrible event. Having to deal with the unscrupulous tactics of an insurance company is the last thing you need on your plate during this time.

Depend on the responsiveness of the bad faith insurance legal team of Millin & Millin to get you the justice you deserve when seeking your rightful compensation after a natural disaster like a hurricane.

Contact ustoday at (956) 631-5600 to get the legal representation you need. Millin & Millin serves the greater McAllen metro area and the whole Rio Grande Valley.

One thing the common citizen lives with, without noticing, is the constant construction going on around them. From the new house going up right down the street to the new retail malls popping up everywhere. Something is always being built.All of this construction involves a number of different parties including owners, contractors, builders, suppliers, vendors, and more, who are all involved in some manner in the undertaking of commercial and industrial projects.

The Millin & Millin Attorneys understand that even with the best intentions and efforts to work together, disputes can (and do) arise amongst the many groups involved.

Our experienced attorneys are here to help find a resolution to some of the common construction disputes that arise during a project including:

1. Errors in a contract.

In 2014, this was the number one reason for contract disputes that arose during construction projects. This trend is still being seen today; it is still the biggest cause of disagreements.

The good news is that this can be easily avoided if a contract is thoroughly reviewed by a qualified attorney before everyone agrees on it.

This can save all parties plenty of trouble as the project moves forward.

2.   A party not understanding or failing to comply with their obligations.

This is has become a growing problem in recent years and is something that has to be monitored carefully. Whether intentionally or not, there can be instances where someone involved with construction fails to meet the terms they agreed to.

In these cases, the other groups who are part of the project will typically take some kind of action to rectify the situation. These kinds of disagreements will slow down and distract from other important matters, even after construction has been completed.

3.   Differing site conditions.

When someone places a construction bid, there are assumed working conditions that are part of that agreement. These factors are subject to unexpected changes and surprises, however.

One of the issues that can arise is the condition beneath the surface of a job site.

Regardless of the severity of unplanned differences, the plans that have been laid out will be affected and this leads to disputes.

4.   Costs that go beyond expectations.

This is a common occurrence in construction projects because there are so many variables and moving parts to account for, regardless of the size and scale of the job at hand.

If all groups working together laid out a detailed contract, there will usually be clarity regarding who is responsible for handling these excesses. Still, having to foot the bill, with or without a clear plan, has the potential to pit one party against another.

5.   Not being paid for work completed.

It might seem like common sense to pay somebody when they have finished the work they contractually agreed upon to perform. Sadly, this is not always the case, for a number of reasons.

In the event that they are not paid, a contractor or subcontractor does have legal actions they can take. Usually, place mechanic’s or materialman’s lien will be placed on completed project until there is some kind of resolution.

6.   Work that falls below an acceptable standard.

This is another tough situation that a contractor or subcontractor can find themselves concerning a construction project. When the quality of their work is called into question, it can create a good deal of confusion and discord.

If it is justified, it can still be a lengthy process to decided how to handle the results. There are also cases when these accusations are made to avoid paying someone for the work they have done.

This can lead to the situation as described in dispute number 5.

When one of these construction disputes arises, you can find comfort in knowing that the team at Millin & Millin has the experience to achieve a resolution for you.

Construction projects are complex systems of work that require many people to work together toward a common goal. Even the best of teams, in any arena, united with a single vision experience their share of disagreement.

We believe in building a team of construction experts who will analyze and reinforce your claim until satisfactory results are reached. Our experience in construction litigation extends to:

• Construction defect claims
• Contract disputes
• Construction fraud
• Design defect claims
• Mechanics’ liens
• Warranty claims
• Payment issues such as delay and acceleration damages, nonperformance, nonpayment for goods and services, and delivery of damaged and nonconforming goods

Contact us today at (956) 631-5600 for a free consultation.

The Texas Supreme Court has set a new precedent regarding statutory bad faith.On April 7, 2017, the high court addressed the issue in a lengthy 37-page opinion, establishing five rules about statutory bad faith in the state’s Insurance Code. These news standards will determine when a policyholder can recover damages and policy benefits from a carrier.

USAA Texas Lloyds Co. v. Menchaca

The Texas Supreme Court’s opinion was issued on a case between homeowner’s insurance company, USAA Texas Lloyds Co. and Gail Menchaca. The high court reversed the decisions of both the court of appeals and the trial court judgement.

In 2008, following the destruction caused by Hurricane Ike, Gail Menchaca made a homeowner’s property claim to USAA.

An adjuster was sent to investigate the claim, who found minimal covered damage, which did not exceed the policy’s deductible. Because of this USAA declined to pay out any benefits.

Nearly five months later, Ms. Menchaca requested a re-inspection of the damages. USAA sent a different adjustor that essentially confirmed the initial findings. Again, USAA refused to pay out on any benefits.

The insured party sued USAA for breach of contract and for unfair settlement practices that violated the Texas Insurance code. Ms. Menchaca sought insurance benefits under the policy, court costs, and attorney’s fees.

The case was tried to a jury in Conroe, Texas.

The jury first determined that USAA had not breached the contract and thus no policy benefits were owed. While the jury also validated that the carrier had not infringed on five provisions of the Texas Insurance Code, they found that the insurer was in violation of not reasonably investigating the claim.

Because the jury found that USAA had been engaged in unfair trade practices, they awarded Ms. Menchaca $11,350 for actual damages and $130,000 in attorney fees. Nothing was awarded for contract benefits as there was no breach of contract.

Both parties motioned for judgement in their favor. USAA argued that the Ms. Menchaca was not entitled to statutory damages as they had effectively complied with policy standards. The trial court denied this motion and ruled in favor of Menchaca.

The recent ruling by the Supreme Court of Texas reversed these decisions and remanded that a new trial take place using the five new rules they developed.

Texas Supreme Court’s 5 Rules

The Supreme Court outlined five new rules in order to help answer the question of “whether the insured can recover policy benefits based on jury findings that the insurer violated the Texas Insurance Code and that the violation resulted in the insured’s loss of benefits the insurer ‘should have paid’ under the policy, even though the jury also failed to find that the insurer failed to comply with its obligations under the policy.”

The five newly established statutes are as follows:

1. The General Rule: The insured cannot recover policy benefits as damages for an insurer’s statutory violation if the policy did not provide the insured a right to those benefits. This was defined by the Texas Insurance Code which only allows an insured to recover actual damages caused by the insurer’s statutory violation.

2. Entitled-to-Benefits Rule: An insured who established a right to receive benefits under an insurance policy can recover those benefits as “actual damages” under the Insurance Code if the insurer’s statutory violation causes the loss of the benefits. This was developed as a corollary to the General Rule.

3. Benefits-Lost Rule: An insured can recover benefits as actual damages under the Texas Insurance Code even if the insured has no right to those benefits, if the insurer’s conduct causes the insured to lose that contractual right.

4. The Independent-Injury Rule: There are two aspects to the independent-injury rule. The first is that if an insurer’s statutory violation causes an injury independent of the insured’s right to recover policy benefits, the insurer can recover those damages under the statute. The second is that an insurer’s statutory violation does not permit the insured to recover damages beyond policy benefits unless the violation causes an injury that is independent from the loss of the benefits.

5. The No-Recovery Rule: An insured cannot recover any damages based on an insurer’s statutory violation unless the insured establishes a right to receive those benefits under the policy or an injury independent of a right to benefits.

Millin & Millin is here to answer your bad faith insurance questions.

The manner in which the Menchaca decisions plays out in future cases is still to be seen, but rest assured that your bad faith insurance lawyers at Millin & Millin are diligently following the changes in law that may affect your own situation.

Our bad faith insurance lawyers are strong advocates for McAllen metro residents who have had to deal with bad faith insurance tactics. Our attorneys possess superior experience and the necessary knowledge to bring forth an exceptional case.
Contact us at (956) 631-5600 for a free consultation.

Insurance companies have a number of tactics they use when they are attempting to act in bad faith. One of the most objectionable actions that an insurer can take is to cancel a policy after having received premium payments for years.The attorneys at Millin & Millin recognize such bad faith insurance tactics for what they are and fully believe that no policyholder should ever be subjected to such deceitful behavior.

While insurance companies do have certain rights when canceling a policy, they also have duties owed to the consumer and must follow the terms of the agreement in order to act in good faith. If your insurer has canceled your policy without providing you a written communication explaining their reasoning, then you should immediately contact a bad faith insurance law firm to ensure that you have the proper representation to get what is properly owed to you.

When CAN an insurance company terminate a policy contact?

In order to effectively understand when an insurer is acting in bad faith, it is important to first recognize when they DO have the right to cancel a policy.

First and foremost, it is vital that you as the policyholder always read the contract you are signing, or obtain assistance from an experienced lawyer to help you understand the provisions of the policy. It is your responsibility as the consumer to be as informed as possible.

Depending on the provisions of the contract, most insurance companies are usually allowed to cancel a policy within the first 60 days. During this period, the insurer has more leeway when it comes to reneging on the policy.

Some of the legitimate reasons an insurance agency can cancel your policy include:

• Failure to pay insurance premiums by the due date
• Discovery that the insurance policy was obtained through fraud or dishonest documentation
• The insurance company finds you to be at risk

If your insurer is legitimately able to uncover faults and conditions that make you ineligible for coverage, then they must send you a written notice explaining their reasons for canceling.

This initial cancellation can be repealed and should be done so if you believe that their arguments are invalid.

What must the explanation say?

Your insurer is not allowed to simply cancel your policy for no reason nor without explaining why.

The Texas Insurance Code sets the legal standard for how insurance companies must go about canceling a policy and sets the requirements for the written statement that must be provided to you, including:

• An insurer's written statement giving the reasons for the declination, cancellation, or nonrenewal of an insurance policy must fully explain a decision that adversely affects an applicant for insurance or a policyholder by denying the applicant or policyholder insurance coverage or continued coverage.
• The statement must:
  • State the precise incident, circumstance, or risk factors applicable to the applicant for insurance or the policyholder that violates any applicable guidelines;
  • State the source of information on which the insurer relied regarding the incident, circumstance, or risk factors; and
  • Specify any other information considered relevant by the commissioner.

When is it bad faith cancellation?

Bad faith cancellation can occur through a number of methods including:

• Rescission—Also known as “post-claim” underwriting, this often occurs after a claim has been made to avoid paying for damages. This essentially means that the policy has been retroactively canceled and the insurer will return your premium money and renege on your coverage.
• Cancellation—The termination of a policy prior to the date of expiration for unsubstantiated reasons.
• Non-renewal—Policy is cancelled at the time of expiration.

If your insurer has acted in such a manner under no reasonable proof, then you may be the victim of bad faith insurance policy cancellation.

Unfortunately, post-claim underwriting is often seen following an insurance claim. This is a transparent attempt to avoid paying out what is rightfully owed to the insured and will often lead to the victim carrying the financial burden of the loss.

Did you regularly pay your premiums and hold up your end of the contract? If your insurer is trying to argue that your policy is canceled, you don’t have to go at it alone. Millin & Millin is here to guide you when you most need our legal assistance.

Sadly, some insurance companies are going to attempt to act in bad faith in order to keep as much money as possible. If you have made an insurance claim after a disastrous event and your insurer is attempting to claim your policy was canceled, don’t just accept it, fight back with Millin & Millin.

Our bad faith insurance lawyers have advocated for McAllen metro residents who have had to deal with bad faith insurance tactics. Our attorneys possess superior experience and the necessary knowledge to bring forth an exceptional case.

Contact us at (956) 631-5600 for a free consultation.

April showers bring May flowers...and sometimes a little more than that.Springtime in Texas can change from beautiful breezes one moment to torrential rainfalls the next. For deep South Texas and the McAllen metro area,hail has proven itself to be a devastating natural disaster.

From thunderstorms to hailstorms and more, Texas has seen record breaking losses and insurance claims increase over the last few years. In 2016, March and April recorded storms that caused more than $4 billion in damages to thousands of homes.

Having to file an insurance claim after a disastrous storm can be a difficult process, especially when insurance adjusters attempt to find reasons not to compensate you correctly. That’s why it’s essential that you do some preparation before a storm even hits to help you reduce potential storm damages.

By preparing your home early from weather damage, you give the insurance less reason to deny your claim, and you are able to utilize the home improvements as proof of you taking preventative measures should your insurer attempt to use bad faith insurance claims against you.

Consider taking the following steps as soon as possible to prepare your home for spring storms and to avoid a home insurance denial:

1. Inspect your roof and siding. While it may seem a bit costly, hiring a licensed roof contractor can help you to identify any roof or siding problems which may not be able to handle a thunderstorm or large hail storm. Missing or damaged shingles can mean holes in your roof after a heavy downpour which can lead to serious internal home damage. You should get any issues repaired (including reinforcing any loose siding which can fly off during high winds); make sure to keep a detailed receipt of the services done on your roof to use as proof during an insurance claim.

2. Maintain trees and vegetation in your yard. A cool spring weekend offers the perfect opportunity to clean up your yard and remove any dead or weak limbs that can break during a storm and damage your house. You should also check any shrubs or small trees that could get loose in high winds and break windows. Remove any limbs from trees that are above your home, driveway, or around any other property that could be damaged.

3. Clean and repair drains and gutters. Clear leaves and debris from gutters and outside drains to prevent blockage during spring showers. Blocked gutters and drains can cause water to get into your home while damaging its roof and trim. Also check to make sure gutters are properly attached to your house as a strong thunderstorm can rip from away and cause damage.

4. Consider using shredded bark mulch. Gravel and small pebbles used as landscaping can be blown around during high winds and break house windows (or even your car’s). Shredded bark mulch is much lighter and will not cause any damage if it is blown around during a strong storm.

5. Check the structure of your carport. Many homes in the Rio Grande Valley have carports instead of garages, but those structures can get old, unstable, and become a hazard during high winds and heavy rains. Check the roof of the the car port as well any supporting structures like columns and beams to ensure everything is still in good condition.

6. Check for leaks and examine the seals on your windows and doors. Even with a solid roof, rain can still cause damage to your house by leaking through window seals and doors. Examine the caulking in these areas to make sure they are watertight; fix as needed. You’ll also want to check for leaks in hard-to-reach places such as attics, crawl spaces, and air conditioning systems.

7. Clean up your property. When cleaning up trees and shrubs, keep an eye out for small items that can easily go airborne during high winds. Such trash can become hazardous debris.

8. A final inspection. Once you have completed the initial phase of preparing your home for a spring storm, your next project is too thoroughly inspect your house—inside and out—for any final touches. While doing so, make sure to take tons of pictures (and video if possible) to have a clear and perfect image of how your house looks. Should a severe storm damage any of your property, the photographs and video will prove to be a great source of evidence to your insurer and their adjustors.

At Millin & Millin, we are dedicated to helping you get your insurance to pay out what is owed to you and that damages to your home be repaired as quickly as possible. Let us help you protect your property.

If you are having to file an insurance claim, it’s likely due to the fact that you have just suffered through a terrible event. Having to deal with the unscrupulous tactics of an insurance company is the last thing you need on your plate during this time.

Depend on the responsiveness of the bad faith insurance legal team of Millin & Millin to get the justice you need when seeking your rightful compensation from deceitful insurers.

Contact us at (956) 631-5600 to get the legal representation you need. Millin & Millin serves the greater McAllen metro area and the whole Rio Grande Valley.