When you sign up for a home insurance policy, both you and your insurance provider are making a binding promise. While you promise to make your insurance payments as agreed, the insurance company promises to pay out for valid claims under your policy. If an insurance company fails to hold up its part of the bargain, it’s acting in bad faith.
If you think your claim has been wrongfully delayed or denied, suing your insurance company for bad faith may be your best option. Keep reading to learn more about what you can expect from a Texas bad faith insurance lawyer.
Before you actually take the big step of suing your insurance company for bad faith, there are a few steps you’ll want to take first. First, you should gather essential evidence and carefully review the processing of your claim. Evidence might include documentation of your claim communications and correspondence, as well as internal memos and denial letters.
It’s important to note that you can file an internal appeal with your insurance company to try to change the judgment on a claim. Insurance adjusters make mistakes just like the rest of us, and an appeal may be able to rectify any problems.
Next, if your appeal is ineffective, you’ll want to file a complaint against your insurance company with the state. If you feel you’re being treated unfairly by your insurance company, you can file a complaint with the Texas Department of Insurance (TDI) which will then contact the insurance company on your behalf. If the TDI finds that the company acted improperly, not only could you get the settlement you deserve, but the company could face penalties.
If your internal appeal was unsuccessful, it’s a good idea to go ahead and contact an experienced insurance lawyer like those on the team here at Millin & Millin. Your lawyer can help you determine both if your insurance company acted in bad faith and what to do in case it has. If the evidence suggests that your insurance company did act improperly, you may need to sue your insurance company to get the payment you deserve.
The lawsuit you file against your insurance company will either be for their failure to uphold their part of the contract you signed when you got your policy or for bad faith tactics.
Unfortunately, suing your insurance company for bad faith isn’t a very speedy process. Complex cases may take up to two or three years to complete, though most settlements are reached in about a year. If a settlement can’t be reached, or if your insurance company declines to negotiate a settlement, you may need to take your case to court to fight for whatever you’re owed.
First of all, it’s important to note that every state has its own set of laws to protect consumers from predatory corporate behavior, such as insurance companies acting in bad faith. Bad faith may fall under breach of contract or a breach of bad faith insurance laws. Bad faith insurance lawyers, like those at Millin & Millin, have a deep understanding of Texas insurance laws on bad faith, and we can help you determine what type of bad faith claim you should make.
Additionally, your lawyer will help you make an informed decision as to whether you should file in state or federal court. This all depends on factors such as where the company is headquartered, as well as your residential status in which you file.
Common types of bad faith practices that often lead to insurance bad faith claims include:
It’s important to know that once you’ve hired a lawyer to handle your case, you should no longer contact the insurance company or have any direct dealings with them. It’s now your lawyer’s responsibility to act on your behalf and settle the issue in your favor. If your insurance company breached your insurance contract or Texas insurance codes, we can help you seek legal remedies.
If your insurance company engages in unfair practices that constitute bad faith, there are steps you can take to protect your rights to compensation under bad faith insurance law. Below, you can learn more about seeking fair treatment under different types of insurance policies.
With today’s technology, you no longer have to physically write down everything you own. Nowadays, you can just utilize the camera on your smartphone or tablet to take a video of all your possessions, as well as details about your home and its architecture.
You’ll want to take as many pictures as possible, as well as note down any attention-grabbing details about your home. The more information you have on hand, the easier it will be for you to recall the particulars should you file a claim at some point.
If you should experience a house-damaging event, then photograph the source of the damage. After taking the necessary steps in gathering information (i.e., pictures and video), do what you must to prevent further damage. However, do not commence with cleanup or repairs until the insurance adjuster has visited you.
When the claims process begins, remember that insurer apps can make sending pictures and other records to the company much more efficient, so take advantage of these options. Also, keep in contact with the adjuster frequently (once a week) by phone or email. During the repair process, keep receipts for any expenses you paid for as a direct result of the damage occurring (i.e., supplies used to help contain the damage).
Be aware that filing a small claim may cause a rate increase, so if possible, fix the issue yourself to avoid having a higher premium.
Fighting back: If your insurer continues to hassle you over minuscule or irrelevant details during the claims process, then get in contact with your state insurance department. There are usually free services that the department offers that will help you through the claims process and help to ensure you get the legal compensation you’re entitled to under your policy.
Car accidents happen in an instant, but the effects can be felt for a lifetime. Though the stress of being involved in an accident can make it challenging to gather all the information needed for an insurance claim, try to remain calm.
It’s essential that you do NOT simply exchange insurance and contact information with the other driver(s), but that you also take pictures of the incident. Take photos of the damage to your car, the damage to other cars involved, the accident scene, weather conditions, license plates, registration, and insurance cards. If possible, get contact information from witnesses for future purposes. When police arrive and create an accident report, get the report number and a copy of the forms.
When all vital information has been gathered, contact your insurer.
You can generally use any repair shop to get your car fixed, but following the insurer’s recommendations may help to expedite the process.
Fighting back: If the chosen body shop claims that the repairs will cost more than the appraiser says, provide the shop’s estimate to your insurer. There may be differences in costs because of policy specifics, but in these scenarios, you have the right to get an independent appraisal. Recruiting an independent party to your case may help you to settle the claim closer to what you feel is fitting.
If your insurer claims that the car is totaled, but values it at a significantly lower price than anticipated, then do some investigation into the selling prices of used cars with similar conditions as your own. You can also ask for the reasoning behind the lower payout. If you feel like the payment is still too low, contact your state insurance department.
Health insurance claims can be an exhausting experience because of a third party - your health care provider. During the purchasing phase of health insurance, try to get a clear understanding of what exactly a policy will and will not cover, as well as service requirement specifications. For example, is pre-approval needed to obtain medical treatment at certain facilities?
Also, pay attention to out-of-pocket costs for an out-of-network provider. These charges tend to be higher than with in-network providers, and processing them may be burdensome because the out-of-network provider has not set up a claims link with the insurer. Make sure to call your insurer with any questions you may have about out-of-network coverage and to take detailed notes of the conversation, including date, time, the person you spoke with, and conversation points.
When making a claim, compare the doctor’s bill with the insurer’s explanation of benefits (EOB). Also, be aware that the doctor’s office may have sent you a bill prior to filing a claim with the insurer, so do not pay until you have received the EOB.
Fighting back: Claim denials may just be related to administrative problems and occur for a number of reasons, including the insurer needing additional information from the doctor or a mistake in the billing coding. It is highly recommended that you avoid simply making repeated phone calls and instead immediately go into the appeal process.
Your state insurance department can once again be of great benefit prior to the appeal. They can provide you with guidance and information, especially when dealing with large claims. Make sure you have the proper evidence and documentation from your doctors on why a given procedure was necessary.
Insurance companies are legally obligated to act in good faith when handling claims. However, some insurers unfairly deny or delay valid claims. If you suspect your insurance provider is acting in bad faith, you may have grounds for filing a lawsuit.
Filing a lawsuit against an insurance company is a serious step, but it may be necessary if you experience any of the following:
While some states give policyholders as long as four years to make bad faith claims for insurer misconduct, in Texas, policyholders typically only have two years in which to file a lawsuit when an insurer fails to act fairly.
If your insurance claim has been denied in bad faith, getting legal representation is the right choice. Insurance companies have considerable resources and high-powered legal teams to protect their interests. This makes it challenging for policyholders to fight unfair claim denials alone. Hiring an experienced bad faith insurance lawyer can help increase your chances of getting the compensation you deserve.
A bad faith insurance attorney understands what’s involved in insurance law and recognizes deceptive tactics that insurers use to avoid paying claims. Here’s how a Texas bad faith insurance attorney can help you sue insurance companies for bad faith:
Through bad faith litigation, you may be able to access full compensation for your original insurance contract claim. You may also be owed punitive damages, and sometimes treble damages, in cases of willful wrongdoing. In some cases, policyholders may also be able to make claims for emotional distress and economic harm.
Whether your claim was wrongfully denied, delayed, or underpaid, a bad faith insurance attorney can help you find the right path forward to get financial relief. If you feel your insurance company is acting in bad faith, you don’t have to face them on your own. Your bad faith insurance attorney can help you stand up to any fancy legal teams your insurance company may have.
Insurance companies have a lot more resources than the average person, and that makes any legal action against an insurance company a real challenge for the individual. Don’t wait to get help with your case. Reach out to the experienced, compassionate Texas bad faith insurance lawyers here at Millin & Millin for help with your case.
