When you pay your premiums, you are entering a binding contract with your insurance provider. In exchange for your financial investment, the company promises protection when disaster strikes. Unfortunately, many policyholders in Houston find that when they file a claim, their insurer becomes an adversary rather than an ally.
Under the Texas Insurance Code, companies are legally obligated to act with “good faith and fair dealing.” This means processing claims honestly and within a reasonable timeframe. When a provider knowingly breaches this duty without a legitimate basis, they are acting in bad faith. Recognizing these signs is the first step toward securing the full compensation you deserve.
Understanding Bad Faith Under the Texas Insurance Code
In Texas, bad faith occurs when an insurer unreasonably denies or delays payment after their liability has become reasonably clear. Because the law recognizes the power imbalance between a massive corporation and an individual, specific protections exist to ensure you are treated fairly.
If you are struggling with a claim denial or an unresponsive adjuster, you may be a victim of deceptive practices. Proving bad faith is a complex legal process, but it is often the only way to force an insurer to honor their obligations. Working with a Houston insurance bad faith attorney allows you to investigate whether the company’s actions cross the line into illegal misconduct.
Five Common Red Flags of Bad Faith Insurance Practices
Identifying bad faith requires a close look at how the company justifies its decisions. While every case is unique, there are five recurring patterns that indicate an insurer is acting outside the law.
- Denial Without a Legitimate Reason: Texas law requires insurance companies to provide a reasonable explanation for rejecting a claim. If your provider issues a denial without citing specific policy language or facts, they may be avoiding their financial responsibility.
- Failure to Investigate: An insurer cannot reach a fair conclusion if they never properly looked at the evidence. If an adjuster makes a final decision without visiting the site, interviewing witnesses, or reviewing records, they have failed their duty.
- Unreasonable Delays: Texas has strict prompt-payment laws. If your insurer stops returning calls or frequently switches adjusters, they might be using a “delay and pray” tactic to force you into a lower settlement.
- Lowball Offers: There is a difference between a low offer and one that has no basis in reality. Offering an amount significantly less than the documented value of your damages is a sign they are not negotiating in good faith.
- Misrepresenting Policy Terms: An insurance company cannot change the rules after you suffer a loss. If an adjuster lies about what your policy covers, they are engaging in deceptive practices.
Protect Your Rights with Roberts Markland LLP
When you are successful in a bad faith claim, you may be entitled to “treble damages,” which is three times the amount of your actual losses, plus attorney fees. At Roberts Markland LLP, our trial lawyers bring over 125 years of combined litigation experience to the table. We handle these cases personally, providing the direct attention necessary to level the playing field against large corporations.
Contact Roberts Markland LLP today at 936-261-7591 to schedule your free consultation and hold your insurance company accountable.
Image credit: // Shutterstck // fizkes