Houston Bad Faith Insurance Lawyer

Bad Faith Insurance Claims We Handle

Bad faith insurance practices are when the carrier violates its obligation to the policyholder. It refers to unethical, deceptive, or unreasonable actions and the unfair treatment of a policyholder. These bad faith practices also include unfair processing of third-party claims.

Bad faith practices can happen in any type of insurance claim, like:

• Business interruption claims
• Property damage (homeowners insurance, commercial property insurance)
• Health insurance claims
• Life insurance claims
• Fire damage claims
• Wind damage claims
• Water damage claims
• Flood damage claims
• Hail damage claims
• Car accident damage claims
• Hurricane and tornado damage claims 

Omar Ochoa Law Firm handles all these bad-faith insurance claims and more!

Understanding Bad Faith Cases in Houston, Texas

An insurance company must pay any valid claim submitted, whether from their own customer or a third party, in cases where their customer has caused property or other damage to another party.

If an insurance company cannot give you a valid reason for not paying the full amount of your submitted claim, it’s a good indication it may be acting in bad faith. If found guilty of bad faith practices, it may be required to financially compensate you for your losses, including the full claim amount and other damages.

The Texas Insurance Code covers the duties of insurance carriers; Chapter 541.060, the Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Act, specifically sets forth the obligations of an insurance company when it receives a claim:

• Process it promptly, without unnecessary delays
• Provide customers with correct information about the terms of their insurance coverage
• Provide a valid reason if the claim is denied
• Fairly settle valid claims
• Release settlement awards without unneeded requests for more information

Chapter 541 also specifically bans insurance bad faith practices in the state, and Chapter 542, the Unfair Claim Settlement Practices Act, specifically addresses the timeline insurance companies must follow when processing claims and communicating with the claim submitter:

• Insurance companies must acknowledge a claim and begin investigating within 15 days of receipt
• Insurance companies have 15 days after receiving the requested information to determine the claim
• Carriers must pay any valid claim within five business days
• Carriers must state valid reasons for denying claims
• A claim determination must be reached within 60 days of receipt

Any Texas insurance company found to violate these deadlines is liable for the policyholder’s legal fees and damages, with an additional 18% penalty per year.

Is Your Insurance Company Acting in Bad Faith?

Are you unsure whether your insurance company is acting in bad faith or if you are just experiencing normal delays in the claims process?

Examples of Insurance Bad Faith Practices:

• The carrier refuses to investigate your claim
• Your payment is delayed past the Texas deadline
• You are being accused of filing a fraudulent claim
• No acknowledgment of the claim you filed
• Delaying the investigation
• Declining to make a fair settlement even when their blame is clear
• Refusing to negotiate a fair settlement or offering too little
• Failing to deny or affirm coverage within a reasonable timeframe
• Not explaining what an issued payment is for
• Making misleading statements or deliberate misrepresentations
• Threats or strongarm tactics to discourage customers from filing claims
• Making material changes to an insurance policy without disclosing these to customers
• Requesting unnecessary documentation or flooding claimants with paperwork requests

Our bad-faith insurance attorneys have seen a lot of bad behavior by insurance companies over the years. We fight to hold your insurance company accountable for its legal responsibilities, working on your behalf to ensure you are treated fairly.

When Can an Insurance Company Rightfully Deny a Claim in Houston, Texas?

Although insurance companies are legally required to pay all valid claims, they aren’t required to pay all claims. Sometimes, fraudulent or inflated claims are submitted, whether in error or by design, and an insurance company can deny those claims.

Common legal reasons your insurance company denied the claim include:

• A clear violation of Texas law
• The claim contains mistakes
• The customer’s policy doesn’t cover the damages
• A filing deadline was missed
• The remedy or corrective procedure isn’t medically necessary or is deemed “experimental” (most often for medical treatment)

All claimants have the right to appeal a claim denial. An attorney can help craft a strong case for approving a denied claim.

What Compensation Can You Receive in Bad Faith Claims in Texas?

Denied claimants have another option besides appealing a denied claim. If the claim was denied or underpaid in bad faith, rather than for the reasons listed above, the claimant may file a lawsuit against the insurance company for damages from the denied claim and other losses.

A Texas bad faith insurance lawyer helps you get proper compensation, including an amount higher than the face value of the claim or up to three times the initial claim amount if it’s proven the insurance company deliberately acted in bad faith.

Chapter 542 of the Texas Insurance Code covers the types of damages a plaintiff can recover in a bad-faith insurance suit:

• The full cost of the property damage, medical treatment, or other claim items
• Statutory interest and penalties
• Legal fees for the plaintiff
• Liability for a judgment in excess of the policy limit
• Economic losses due to the claim denial
• Emotional distress
• Punitive damages in cases where the insurance company acted in egregious bad faith

Texas specifically permits plaintiffs to collect any other relief a court deems appropriate; this gives Texas judges and juries almost a blank check to hold insurance carriers accountable for their bad faith practices.

How Can Our Bad Faith Claim Attorney Help You?

Insurance companies have legal departments to fight appeals to denied claims and protect them from being held accountable for unsavory practices. Your own Houston bad-faith insurance claim lawyer helps even the playing field.

As your legal advocate, your attorney investigates the reason for your denied claim and builds a case to prove the insurance company acted in bad faith.

Trust the Houston-based Omar Ochoa Law Firm to:

• Provide legal advice tailored to your unique situation
• Gather evidence through an independent investigation of the claim and denial
• Audit the insurance company’s practices to find out how bad faith occurred
• Handle communications with the insurance carrier on our behalf so you aren’t harassed
• Negotiate for you in mediation
• Litigate your case in court if we cannot achieve any other resolution

You don’t deserve a bad faith denial of your valid insurance claim. Insurance companies that engage in bad faith practices deserve to have their deception exposed, and our skilled attorneys can help you achieve that.

How Much Do Our Services Cost?

Our Houston bad faith insurance claim lawyers work on a contingency basis, meaning you don’t pay a penny until we successfully settle your case or win in court. We know when you’re waiting for insurance coverage for property damages or to cover your medical treatment, you’re facing financial hardship.