Living in Houston places you at the mercy of nature, as the area is known for various natural disasters. Especially for people with homes or businesses near the coast, the threat of water damage is ever-present. To protect themselves, many homeowners and business owners obtain insurance policies that appear to provide coverage in the event of water damage. However, many of these policies can be difficult to understand, and insurance companies may deny claims for complicated or even illegal reasons.
Talking with a Houston water damage claims lawyer at Kirk Law Firm, PLLC may help you collect payment on an insurance policy after a denial. One of our experienced first party insurance claims attorneys could assist you in understanding the terms in your policy, evaluate the true cause of the water damage, and demand that insurance companies provide benefits according to your contract.
Sources of Water Damage and Their Impact on Insurance Claims
It is important to understand how homeowners and business property insurance policies work. In general, they do not cover loss due to a specific hazard, such as water. Instead, they aim to limit the scope of a policy to the source of the water itself. For example, a policy may cover water damage due to a broken pipe within a home but may not provide protection against water from natural sources, such as an overflowing river.
This can place property owners in Houston in a difficult position. For example, they might experience water damage due to hurricanes, bursting dams, or flash floods that could lead to an insurance company denying a claim. Being able to properly document the cause of a loss and file accurate claims is the first step towards successful interactions with insurance companies. One of our Houston water damage claims attorneys could work with property owners to evaluate their current insurance policies, submit claims under the proper clauses of their policies, and fight back against allegations from insurance companies that a specific damage is not a covered loss.
Insurance Companies and Deceptive Trade Practices
Seeking benefits after water damage can leave property owners feeling frustrated. Even if it appears that a policy covers the source of the damage, they may still feel as though the insurance corporation is giving them the runaround. Thankfully, state law offers a potential remedy to this issue.
Texas Insurance Code § 542.003 outlines what are called deceptive trade practices in the insurance industry. These include failing to properly communicate with customers and not paying out claims when liability for a loss is reasonably clear. A failure to provide compensation after water damage may indicate a violation of this law.
For instance, if an insurance adjuster attempts to argue that water damage was the result of a non-covered event, such as a flood, when it is apparent that the source of the water came from inside a building, this may be an example of an unfair business practice. A company’s refusal to clarify a denial or unwillingness to fully investigate a water-damaged structure may also be considered illegal. Reaching out to one of our water damage claims lawyers in Houston could help property owners to better understand the duties of insurance companies under state law and determine if they can demand compensation through a lawsuit.
Contact a Houston Water Damage Claims Attorney After a Claim Denial
The onset of water damage in a home or commercial property can result in tens of thousands of dollars in losses. The owners of this land may be relying on insurance payouts to cover the costs of rebuilding or reclamation. Sadly, insurance companies that administer these policies may allege that a policy does not cover the exact type of damage and issue a denial. This type of response could justify seeking legal representation.
At Kirk Law Firm, PLLC, a Houston water damage claims lawyer is ready to fight for you. They could evaluate the reason for a denial and compare it against the terms in your insurance policy. If it appears that an insurance company has breached its contract or acted in bad faith, they are prepared to fight for the compensation that you deserve. Contact one of our dedicated attorneys now to get started.