If your premiums are paid and your filing is valid, your insurance company has a duty to compensate you for the losses covered in your policy. However, insurers can sometimes act in bad faith by unreasonably denying, undervaluing, or delaying the investigation of their client's claims. Sometimes, they may even refuse to pay any form of compensation at all.
Keep reading to learn about bad faith insurance recoverable damages in Texas, and how an experienced bad faith attorney from Millin & Millin Attorneys can help you pursue the compensation you may deserve.
Whether it’s Washington’s Insurance Fair Conduct Act or the Texas Insurance Code, most states have a range of laws and regulations in place dictating what actions constitute insurance bad faith. When an insurer acts in bad faith, including unreasonable or unlawful acts, it can lead to significant losses for policyholders. Some bad faith tactics that insurers may engage in include, but are not limited to:
It’s worth noting that there are some types of good faith practices that may still be against the best interests of the policyholder. For instance, denying an otherwise valid claim for unpaid premiums, a late filing, or fraud on the policy application may each constitute fair dealing.
The bad faith damages Texas courts offer depend on your situation. It is usually influenced by factors like the type of claim you present to the insurer, the bad faith acts committed, and the losses you have suffered from such acts. Compensation includes the same main categories as other tort cases: compensatory and punitive damages.
Compensatory damages are claims you can pursue for the actual loss you’ve suffered. In bad faith insurance cases, compensatory damages typically cover two types of harm: contract and extracontractual damages. Punitive damages, meanwhile, are only provided in cases of extreme wrongdoing.
This is compensation for the original amount your insurer agreed to pay based on your insurance policy. For instance, if your house was damaged, the court can award bad faith insurance damages for the cost of repairing the damage and your contractor's fees. Common types of contract damages provided for bad faith claims include:
While contract claims can be simpler than other types of settlements, it’s still in your best interest to get help from a Texas insurance lawyer if you plan to pursue bad faith litigation for contractual losses.
When insurers wrongfully delay, undervalue, or deny coverage, the knock-on costs can be considerable. Extracontractual compensation covers consequential damages and other losses caused by bad faith claim handling. These are damages for the additional economic burden and mental distress that were caused by your insurer's bad faith actions.
Punitive damages, also called exemplary damages, are a form of punishment for bad faith insurance companies. To be awarded punitive damages, your Texas bad faith attorney must prove that:
Simple unfair treatment is not typically enough to give claimants access to punitive damages. If you feel that extreme or repeated wrongdoing was involved in your case, you should get help from a Texas insurance claim lawyer to get help determining if you may be owed punitive damages.
Different factors can affect the court's evaluation of your bad faith insurance claims and the damages to grant, including:
You will need to discuss these factors with your Texas bad faith attorney to help you evaluate your situation and gather evidence to build a strong case against your insurer in court. While the majority of settlements are reached through negotiations, you may need to pursue a jury verdict to access justice.
If you think your insurance company acted in bad faith against you, you should absolutely reach out to a lawyer for help. First of all, your insurance company will have considerable resources to put toward fighting your case, and you’ll need a capable legal team by your side to fight back. Plus, insurance cases can be incredibly complex, and it will be nearly impossible for you to bring a successful suit without legal expertise. Aside from defending you in court, your attorney will also handle negotiations with the insurance company and protect your best interests if you decide to settle out of court.
When pursuing damages, a knowledgeable Texas bad faith insurance attorney will help you:
These actions can significantly improve your chances of getting the damages you seek and ensure that your insurance company takes responsibility for its actions.
Not every delay, refusal to pay, or inconvenient tactic is the same as acting in bad faith. Sometimes, these actions might qualify as fair dealing. It’s best to get an experienced Texas bad faith insurance attorney to evaluate your case properly and determine the right damages to pursue in court.
At Millin & Millin Attorneys, we can help you investigate your insurance claim thoroughly, protect your best interests, and ensure that you have the legal support you need to pursue adequate compensation for your losses. Whether you’re facing a denied auto, property damage, or life ins. claim, you can count on our law firm to help you fight for whatever benefits you may be owed. Our own fees are paid as a part of your settlement, so you won’t need to worry about paying out-of-pocket for our services.
