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Insurance Bad Faith

Residential homeowners and commercial property owners purchase insurance in the event of a catastrophic loss to protect their investment. Insurance companies sell their policies with marketing messages of protection and trust. When a claim is filed, policyholders often find the opposite to be true: Insurance companies begin acting in bad faith. Insurance bad faith is the act of delaying, disputing, or outright denying a valid claim for no reasonable basis.

Delay, Deny & Dispute

An insurance company is a moneymaking business. They have no incentive to pay policyholders’ claims without attempting a negotiation of sorts. Although the policyholder is unaware of this negotiation, the insurance company knows exactly what it is doing when a damage claim is undervalued or damage clearly caused by a weather event is listed as normal wear and tear. An insurance company has the legal obligation to pay a policyholder’s claim in a timely fashion. To use these tactics against their own insured is a breach of good faith and fair dealing that violates the Texas Deceptive Trade Practices-Consumer Protection Act (DPTA) of 1973.

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Insurance companies currently selling policies in Texas include:

  • AIG
  • Allstate
  • Amica
  • American Family
  • Farm Bureau
  • Farmers Insurance
  • Fireman’s Fund
  • Lexington
  • Liberty Mutual
  • Lloyds of London
  • Nationwide Insurance
  • Safeco
  • State Farm
  • Travelers
  • USAA
  • Zurich

A full list of property insurance carriers with ratings may be found on the Texas Department of Insurance website by clicking here.

Hurricane Harvey and Bad Faith

Hurricane Harvey decimated large areas of South Texas.  Corpus Christi, Port Aransas, Port O’Connor, Victoria, Rockport, and other coastal communities were the first to bear the hurricane’s wrath when it made landfall as a Category 4 on Friday, August 25, 2017. A Category 4 hurricane is characterized as a storm with winds of 130-156 mph with predictions of total and long-lived electrical losses, catastrophic damage, and more. Millions of dollars in damage occurred, which will result in insurance companies paying thousands of claims. In an attempt to save money, insurance companies will begin to delay, dispute, and deny valid claims. Even if an insurance company offers a settlement, the policyholder is not obligated to accept it if the offer is not fair.

Contact an Attorney at Tracey & Fox

If you feel your insurance company has acted in bad faith over Hurricane Harvey claims, please contact the lawyers of Tracey & Fox.

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Texas Lawyer Top Verdicts & Settlements 2017 #22 Motor Vehicle Tracey & Fox Eden Rebollar V. Janis Detloff
San Antonio
Tracey & Fox
6243 Interstate 10 Frontage Road, #1011
San Antonio, TX 78201
(713) 955-7855
Dallas
Tracey & Fox
5526 Dyer Street, Suite 215
Dallas, TX 75206
(713) 955-7860
Houston
Tracey & Fox
440 Louisiana Street, Suite 1901
Houston, TX 77002
(713) 955-7854