Like many Texans, you rely on your insurance to protect you should the worst occur. By faithfully making your payments and abiding by the terms of the policy, you assume that the insurance company will be there for you when you suffer an injury or property damage. As a two-way contract, there is an assumption that what is good for one party is good for the other, so honoring insurance claims fully and promptly should be a high priority for an insurer.
But what happens when the opposite is true – when the insurance company doesn’t hold up its end of the bargain?
If this has ever happened to you, you know how important effective strategies for handling insurance claims can be. Here, we give you an overview of Texas insurance claims highlighting what you can do to protect your interests against unscrupulous insurance company tactics. If, after reading our guide, you still have questions or think that our services could be right for you, contact Colby Lewis, Texas insurance lawyer today.
Tactics Insurance Companies Use
How do you know if you potentially have a claim against your insurance company? Any of the below tactics should be a red flag:
- Denial of claims
- Underpayment of claims
- Delays in claim processing
- Unresponsive to communications
- Misleading or lying to you
If you encounter any of these warning signs or have other reasons to believe that your insurance company is dealing with you unfairly, contact an experienced bad faith insurance lawyer for an analysis of your case.
Role of Insurance Company
In theory, an insurance company’s role is three-fold. First, it has the duty to defend a lawsuit. Second, an insurance company has the duty of indemnification. The term indemnification means that the insurance company has a duty to pay a judgment against the policy holder up to the limit of coverage if the act or omission is covered under the policy. Finally, an insurance company has the duty to pay a claim for loss if it is covered under the insured’s policy. Essentially, these objectives were established to create a framework in which insured’s claims can be dealt with in an equitable manner.
Bad Faith
Under Texas law, all insurance companies have an implied covenant of good faith. This means that the insurer must act reasonably and treat you fairly.
An insurance company can sometimes act unreasonably at the insured’s expense. A bad faith insurance claim occurs when an insurance company fails to pay a claim, underpays a claim, fails to defend a lawsuit, or engages in some other action contrary to the insured’s best interests. A successful bad faith claim allows the insured to recover compensation as damages.
To be awarded compensation, you must show that your claim was denied even though liability was reasonably clear or that the insurer engaged in unfair or deceptive acts or practices in the business of insurance. The latter includes tactics such as:
- Misrepresenting a material fact or policy provision related to coverage
- Failing to attempt in good faith to reach a prompt and fair settlement
- Failing to provide a prompt and reasonable explanation for the basis of the denial
- Failing to affirm or deny coverage within a reasonable period of time
- Refusing to pay a claim without conducting a reasonable investigation
When one of these are present, an experienced bad faith insurance attorney can file an action against the insurer and help your family recover compensation.
How to file a complaint
There are two common ways to file a complaint against your insurance company. The first is to file a formal complaint with the Texas Department of Insurance either online or submitted through mail. If successful, a Texas Department of Insurance claim can hold the insurance company responsible and reverse or adjust your settlement.
The second way is to file a legal complaint against the insurance company. It’s important to remember that the insurance company doesn’t always have your best interests in mind when calculating settlements – it could be in your best interest to hire a legal professional to pursue a more favorable solution. A trusted attorney can investigate your claim for liability, calculate equitable damages and in some cases, may be able to win punitive damages to punish the insurance company for unsavory practices.
Collecting evidence
Solid evidence can make your case, while lack of essential evidence can make it impossible to be successful. You should begin collecting evidence as soon as possible after the incident to document your damages. For example, try these strategies to collect evidence:
- Keep all receipts, invoices and other proofs of expenses and payments
- Maintain a file of all medical-related documentation
- Take photos or videos of any damage related to your claim
- Ensure that you get all communications in writing
When gathering evidence, err on the side of inclusion – you never know what pieces of information may come in handy during a legal case.
Mistakes to avoid
One of the biggest mistakes claimants make is assuming that the insurance company is on their side. The insurer’s objective is to pay out as little as possible, so any settlement offer should be carefully analyzed by a knowledgeable insurance lawyer.
Another significant mistake is allowing yourself to be recorded in conversations with the insurance adjuster. Recorded comments can be used against you at a later date and you might accidentally damage your claim. When conversations with insurance agents are needed, it’s best to consult with a Texas bad faith insurance claim attorney.
Finally, a big mistake to avoid is to accept a settlement without the input of a trusted lawyer. You may be unable to properly assess the full amount of damages you are eligible for and can risk shortchanging your claim.
Protect Your Interests Against Unscrupulous Insurance Companies
When you’ve experienced misfortune, it’s not always easy to know where to turn. At the Law Offices of Colby Lewis, we fight tirelessly against big insurance companies to protect your interests and maximize your payout. When you work with us, you’ll get the benefit of our years of experience as well as a compassionate and understanding guide throughout the claims process. If you’ve been injured, don’t suffer in silence – contact the Law Offices of Colby Lewis for a full case evaluation today.
