Insurance Bad Faith Claims
Under Texas law, insurance companies owe a fiduciary obligation to their insured. This means that insurance companies must exercise the duty of good faith and fair dealing in their relationship with the insured. Failure to do so will give rise to a cause of action commonly known as “Insurance Bad Faith”. Insurance companies have a duty to pay their policyholders’ claims fully and in a timely manner. Even if the insurance provider is not engaging in fraudulent activity, certain actions by the insurer may still be evidence of bad faith on the part of the insurer.
Among the numerous examples of how an insurer can commit bad faith and deny your claim are:
* Failure to investigate a claim in a timely manner
* Unnecessary delay in payment of benefits
* Offering inadequate, unfair value for losses suffered
* Unfair interpretation of the insured’s policy
* Refusal to reach a settlement in the case
* Refusal to reimburse you for the entirety of your loss.
When an Insurance Company violates its duty of good faith and fair dealing, or otherwise violates the Texas Insurance Code it may give rise to a lawsuit on behalf of the insured. In the lawsuit, the insured may be entitled to statutory penalties, treble damages and attorney fees.
Hi,
Thanks for writing such an interesting article. It’s really good to know about the real estate and home insurance in detail. Buying or renting a new residence is best done with the help of an experienced Houston Home Insurance Agent. Every mortgage lender, for example, requires the purchase of homeowner’s insurance (often abbreviated HOI) as a condition of their loan. Insurance can help keep your home and future safe and secure.
Imagine what would happen if you were uninsured and suffered a massive fire in your home. Without a policy from your local Houston Home Insurance Agent, everything you love and all that you’ve worked for would literally go up in smoke. A homeowner’s policy is an important and responsible way to keep your home and your finances safe from unprecedented disaster.
Thanks,
- Madlina Francis