You are within your rights to feel frustrated when an insurance company fails to honor a legitimate claim. Claim denials, underpayment, and unreasonable delays can all impact your ability to care for your family. Many Texans are surprised when their claims are denied for vague reasons, which may involve “pre-existing damage” or “insufficient documentation.”
Our lawyers understand the tactics insurance companies may use to deny or delay your claims, and we help clients fight back. So, is it worth suing an insurance company? Often, yes, and Kirk Law Firm, PLLC can help.
Common Reasons Insurance Companies Deny Valid Claims
Insurance companies frequently deny property damage claims for several reasons. Some of the tactics insurance companies use include:
- Alleging the policyholder failed to meet a technical requirement
- Claiming the damage was due to wear and tear or a pre-existing issue
- Delaying payment indefinitely with requests for redundant documentation
- Blaming the damage on uncovered causes, including poor maintenance or flooding
These strategies are often designed to wear a claimant down and avoid paying out. Even when you know you are owed a payout, hire a lawyer to discuss your legal options and whether suing your insurance company will be worth it.
When It May Be Worth Suing an Insurance Company
When a claim denial is clearly unjustified, it may be worth suing the insurance company. For instance, a company may examine a roof destroyed by a recent hailstorm and claim it is old damage. Other instances of wrongful claim denials involve the insurance company failing to respond to a claim or attempting to drag out the process. Texas law requires prompt investigation and payment.
When the amount paid is far less than the actual cost of repairs, take action. Insurance companies may lowball the value of damage or delay a payout to force a settlement. If an insurance company violates the Texas Insurance Code or the Deceptive Trade Practices Act, you may be able to sue for additional damages, including attorney’s fees.
The Benefits of Suing an Insurance Company for Property Damage
Suing an insurance company can help level the playing field with legal support. Hiring our attorneys early can increase your chances of a successful resolution. Additionally, filing a lawsuit against an insurance company can help force them to honor the original policy terms, allowing you to recover full compensation. Taking a case to court also presents the possibility of extra-contractual damages, meaning you may recover more than the initial denial if the judge determines it was made in bad faith. Finally, litigation often prompts insurers to act quicker.
Hiring an attorney to help with litigation is imperative for both pre-litigation and litigation. The insurance companies have attorneys working on their behalf an individual needs the same representation to negotiate fairly. Kirk Law Firm, PLLC offers free consultations and case reviews before beginning an investigation into a case. If the attorney deems it necessary, a lawsuit can be filed on your behalf without upfront costs, as many cases are handled on a contingency fee basis. Our lawyers have statewide experience with residential and commercial claims and bring a solid understanding of Texas law to the table.
Yes, It Is Often Worth Suing an Insurance Company
Unfortunately, many policyholders are treated unfairly by insurance companies. Not only is legal action worthwhile in such cases, but it is also necessary. Contact Kirk Law Firm, PLLC for a free consultation. Do not let insurance companies get away with denying your property damage claim. Our attorneys are here to help you assert your rights.
