Category: Bad Faith Insurance

What You Win in a Successful Bad Faith Insurance Claim
Damages Available in Texas Bad Faith Litigation

The Texas Insurance Code is fairly straightforward when defining an insurance company’s obligation to an insured. The company owes the insured the duty of good faith and fair dealing, along with a commitment to promptly pay valid claims.

Lawmakers understand that big insurance companies have a lot more power than any individual customer. If the law didn’t require insurers to treat customers fairly, then they probably wouldn’t. Yet despite their legal duties, insurance companies frequently violate their responsibilities, called “acting in bad faith.”

When an insurer acts in bad faith, the affected policyholder may file a lawsuit. If the lawsuit is successful, what types of compensation will the policyholder receive?

972-450-1418 – When an insurance company acts in bad faith, you have the option to file a claim against the company. Should you win, compensation is available to you. To learn more, visit us today.

Some Examples of Bad Faith by Insurance Companies

Before discussing damages, let’s list a few examples of behavior that could constitute bad faith on the part of an insurance company:
- Advising an insured person not to hire an attorney during the claims process
- Altering or canceling a policy after a claim filing
- Purposely delaying payment after a claim resolution
- Failing to acknowledge receipt of a claim
- Failure to reasonably communicate with the policyholder
- Refusing to negotiate
- Repeatedly requiring the insured to submit forms containing the same information while saying the insured has failed to submit the required information
- Transferring a claim to multiple adjusters as a delay tactic
- Withholding claim information
These are just some of the actions that insurers regularly take to avoid paying claims. Often, they get away with it. As an insured, you should know you do have rights, and you should speak to an experienced Texas lawyer to find out how to deal with these bad faith actions.

Damages in a Successful Bad Faith Lawsuit

If you and your attorney ultimately decide to file a lawsuit against the insurer, and if you are the winner either at trial or via a settlement, you may receive several different types of damages:
- Up to three times the amount the insurer would have paid you if it had processed your claim correctly
- Money to cover attorney’s fees, interest and court costs
- Statutory damages such as interest on delayed payments
- Punitive damages that punish the insurer for its bad behavior
You Deserve Strong Representation in Your Bad Faith Insurance Claim

The lawyers of The Fell Law Firm in Dallas are highly experienced in the field of insurance bad faith. We have successfully litigated cases involving life insurance, auto insurance, homeowner’s insurance, commercial insurance and more. If you would like to speak with an attorney about your situation, please contact us to schedule an initial consultation.
March 14, 2020
2 Quick Tips for Dealing With Your Insurance Company

The essence of a contract is the promise. There’s more to contracts than that, of course, but for purposes of this blog post, the concept of making a promise cuts to the heart of bad faith insurance. Take denied claims, for example. You made payments on your insurance contract (as you promised, with your hard-earned money), with the expectation that if something bad happens—like serious storm damage to your home—you’d be covered. So the worst happens and you make a claim.

Now, the insurance company goes back on its promise by undervaluing the damage or denying your claim altogether.

What do you do?

Fighting with your insurance company because of bad faith? Call The Fell Law Firm in Texas at 972-450-1418 today for legal advice.

Quick Tip No. 1: Remember That It’s a Negotiation

The first thing to consider is that virtually no insurance policy is cut and dried. These contracts involve tricky, serious and sometimes life-changing events: tornadoes, fires, car accidents, etc. So there is nearly always some “wiggle room” in the contract that might allow an insurance adjuster to offer less than you expected—or nothing at all. Insurance companies are for-profit businesses and want to protect their bottom line, despite what their TV commercials say.

But this doesn’t mean you’re out of luck.

After you’ve made your claim, the adjuster might hope that you just take their offer (even an unfair offer) and go away. That’s what a lot of people do. It’s the classic case of a big organization—the insurance company with adjusters and lawyers—taking advantage of its power over the consumer. And it’s not fair.

But when you get an offer, think of it as a negotiation. It’s not the end, but the beginning. And it might be time to get a lawyer involved, if not right after the storm or accident.

Quick Tip No. 2: Examine the Language in the Policy

It might surprise you how often the language isn’t as cut-and-dried as the insurance company would pretend to believe. The same “wiggle room” that can work to the insurance company’s advantage can also work for you, depending on the circumstances of your case and the language in the policy.

Vague or unclear language can be decided in court or negotiated at the conference table. (Pretrial settlement is a common way cases are resolved.) There may be questions as to how a relevant clause is interpreted, for example, be it in your favor or in favor of the insurance company.

Call The Fell Law Firm for Advice

Remember, insurance companies write these contracts. They have their own lawyers, who don’t write contracts in a way that protects your interests, but their own.

Insurers create their contracts with a mind toward looking out for what’s best for their company, not necessarily what’s best for you. You need an experienced attorney who will advocate your side of the case, especially when you’re facing bad faith on the part of your insurance company.

If your insurance claim was denied, or you received an unfair offer from the adjuster, contact The Fell Law Firm via email or call us at 972-450-1418 for a free consultation. We will help you evaluate your situation and determine the next steps.

January 13, 2020
Insurance Agent Negligence and Misrepresentation: What Victims Can Do
At The Fell Law Firm, we often talk with clients who were harmed by insurance agent malpractice. They trusted their insurance agents to give them the right information with coverage that protected their families and property. Unfortunately, when a loss occurred and they needed to use their insurance policies, many discovered that the trust they put in their agents had been misplaced.
This can be frustrating and disheartening, but it doesn’t mean that you don’t have options. If your insurance agent failed to get you the coverage you need, you can file a lawsuit against the insurance agent, asking the court to order the compensation you should have received from the insurance company.
For example, if fire damage to your house was not covered because your insurance agent forgot to purchase the policy, you can turn to the courts for justice. A court may determine that the damages in the case equal the amount the insurance company should have paid for the repair of fire damage.

What Is Negligence?

Texas courts have held that insurance agents owe their clients a duty to take certain actions. When they breach this duty by failing to do things they should—like obtaining the coverage they promised or telling you when a policy isn’t renewed—they fail their clients. Courts look to see if that failure caused the client any damage. If so, courts may hold the insurance agent liable for negligence.

Examples of Insurance Agents Acting Negligently

There are many things that insurance agents can do to act negligently. Here are some examples:
- Misrepresenting insurance coverage: When an insurance agent misrepresents an insurance policy as covering things that it really does not or providing more financial protection than it really does, the agent is acting negligently.
- Failing to get insurance coverage for you: Insurance agents who fail to procure the insurance for clients, as promised, are also negligent. In cases like these, the person thinks they have insurance. However, their insurance agent has not secured the coverage, and the person is actually not covered. If your insurance agent was unable to get insurance coverage for you, they have the duty to tell you right away.
- Obtaining inadequate coverage: An insurance agent who promises you a certain level of coverage has a duty to obtain that level of coverage for you. If they promise you a high level of coverage, but then put you in a policy with a lower level of coverage, they are acting negligently.
- Failure to maintain your coverage: In a notable court case, an insurance agent failed to notify his clients that their insurance coverage had not been renewed. The letter from the insurance company came to the insurance agent, but the insurance agent never told the policyholders. They thought they were insured, but they were not.
- Connecting you with an insolvent insurer: An insurance agent has the duty to investigate an insurance company’s financial status. If they sell you a policy from an insurance company that is insolvent and does not have the money to pay out on a claim, the insurance agent may be held liable for negligence.
If You Think Your Insurance Agent Acted Negligently

If you think your insurance agent acted negligently in any way, talking with a lawyer is a good idea. The attorneys at The Fell Law Firm can help. To talk with a lawyer, call 972-450-1418. We offer free and confidential consultations.

Source:

https://www.jstor.org/stable/25762451?seq=1#page_scan_tab_contents; https://www.iiat.org/resources/am/laws-regulations/operations-practices/legal-responsibilities#.Xc4wG_lKjDc
November 20, 2019
Acting in Bad Faith: Tactics Insurance Companies Use to Delay Claims

Your insurance company has a legal obligation to compensate you fairly in the event of property damage, a health issue or another unforeseen circumstance. But all too often insurance companies put their bottom line ahead of the law. They find reasons to delay claims unfairly to avoid making a payment. In doing so, they act in bad faith.
Here are some tactics to watch out for. If your insurance company seems to be using any of these, it’s time to reach out and talk with a lawyer at The Fell Law Firm.

Not Acknowledging Claim Communications

Insurance companies often wrongly delay claims with a tactic that can look like mere sloppiness until you investigate further. When you send them a communication, they fail to respond to it in a timely manner. Often, they don’t respond at all. And when you call to ask about the communication, they claim to have no record of what you’re talking about.
If letters keep going missing, if forms get “lost in the mail,” if you repeatedly reach out and don’t hear back, be very suspicious. Your insurance company could be acting in bad faith.

Failure to Investigate Claims Promptly

After you file an insurance claim, a quick investigation is critical to resolving the matter effectively. As time passes, witnesses are likely to forget critical details. Sometimes they even move and are difficult to reach. Evidence fades, too. Damage becomes weathered, and it’s increasingly difficult to determine exactly what caused the damage and to what extent.
So, if your insurance company seems to be delaying a thorough investigation of the claim, be wary. It might help to have an attorney on your side. Reaching out to an attorney—even before the insurance company denies your claim—can help things run more smoothly. It will send a key message to your insurance company, telling them you mean business.

Withholding Payment After Liability Is Clear

When your insurance company has determined that liability is clear and money is owed, they should not make you wait and wait to get your check. The law requires that they act in good faith and make the payment in a reasonable amount of time.

What if Your Insurance Claim Is Delayed?

If your insurance company doesn’t seem to be acting in good faith, it may be time to talk with a lawyer. The attorneys at The Fell Law Firm can help with unduly delayed or denied insurance claims. Call us today at 1-972-450-1418. We offer free and confidential consultations.

October 18, 2019
With Storm Season Here, Texans Should Know Insurance Truths
People all across the country, and here in Texas specifically, see the segments every night on the evening news. Severe weather causes damage all over this time of year. Tornadoes, heavy rain, strong winds and hail create dangerous conditions—and storm damage to people’s property.
Just last month, North Texas communities were battered by tornadoes. Today, that likely means many homeowners, business owners and car owners are awaiting word from their various insurance providers. The frustrating and likely reality for some of those people is they will be met with disappointment.

Don’t Let Your Insurance Provider Fool or Intimidate You

Purchasing insurance provides a sense of confidence. We tend to have faith that the products we pay for will provide us with the service and protection we need. Too many consumers are met with surprise and then the sense of defeat when an insurance claim is initially denied.
A denial or otherwise inadequate offer from your insurance provider is not the end of the conversation regarding your storm coverage. Your rights in the wake of a damaging storm are worth protecting. But maybe you are hesitant to defend those rights because you are tired, worried you will lose or worried you misunderstood the terms of your policy.

What Does Insurance Offer and Maybe Not Offer in Severe Weather Cases?

While the point of storm damage insurance is to protect yourself financially following extreme weather like heavy storms, hail, tornadoes, fire, etc., even insurance has its limits. Below are some concise explanations about insurance provisions that might apply to your case:
- Storm damage to your home should be covered. The amount of coverage will depend on your specific policy details. How much coverage does your policy, which you should have read, provide? If your insurer fights back against an amount for which you should be covered, talk to an attorney about a possible bad faith insurance case.
- Flood damage is not going to be covered by your general homeowners’ insurance. You need to have a separate flood insurance policy in order to get coverage for potential flood damage. If your insurance provider is denying coverage for flood damage to your property, it might be because it is not part of the plan. If you do not think that is the case—if you have insurance for flooding—let a lawyer help you.
- Living expenses you spend while unable to use your home are covered by homeowners’ insurance, up to a point. Living reasonably is the key to receiving coverage for living expenses, not by choosing the fanciest hotels and restaurants.
Don’t Waste Time and Worry Wondering. Get Legal Direction

You can do all the Google research and late-night worrying about your insurance woes that you want, but you will still be left with questions, confusion and financial stress. The most efficient and helpful way to combat what is very likely a bad faith insurance case is to turn to a law firm experienced in these matters.
It is unsettling enough to see one’s property—a home in particular—damaged, sometimes beyond recognition. Homeowners will often need to work through the emotion and shock of that loss. If you are an overwhelmed homeowner looking for some security again, contact a lawyer experienced in taking on insurance companies and protecting consumers like you.
July 1, 2019
Do You Have a Valid Bad Faith Insurance Case?
When the unknown happens around you and your family, you should be able to rely on your insurance company to hold up their end of the deal. Sometimes, insurance companies deny or delay valid claims, also known as acting in bad faith.

What Does Bad Faith Insurance Mean?

We purchase insurance to help protect our families, homes and businesses from the unexpected. The insurance company creates a policy, or a contract between you and the company, requiring you to pay a premium in return for their promise to insure.
But, some insurances may decide to deny or delay necessary payment for your valid claims, acting in bad faith. When insurances refuse to pay what they promised, you could be left with costly damages, health concerns and more that you simply can’t handle alone.

Examples of Bad Faith Insurance Claims in Texas

Bad faith insurance claims can include a wide range of types including fire, tornado, automobile, life, homeowner’s and so much more. For example, your insurance may decide to deny your car accident claim, even if it’s covered in your policy. Or, the insurance company may purposely delay investigating the damage to your home after a storm.
According to Texas law, there are certain acts that insurance companies should not commit including:
- Misinterpreting or failing to communicate provisions to insurance policies relating to coverage
- Failure to promptly acknowledge claim communications
- Failure to execute prompt and fair settlements of claims once liability is clear
- Failure to execute prompt investigation of claims
If you’ve experienced an unnecessary denial in your claim or a delay in the investigation of your claim, you could be eligible for compensation and damages. Bad faith insurance claims require skilled attorneys to ensure success. You might consider reaching out to an attorney for proper counsel prior to moving forward on your own.

Do You Believe You Have a Bad Faith Case?

After paying your premiums, you deserve an insurance company that you can count on. If you believe you have a valid bad faith insurance claim, you shouldn’t wait to act. To learn more about your bad faith case, send us a message.
April 1, 2019
When Your Health Insurance Company Won’t Pay For Your Care
If your insurance company notifies you that it won’t pay for care that your doctor says you need, it can be frightening. It’s almost overwhelming to think about trying to fight them. You’ve paid for insurance and worked hard to make payments on-time. Health insurance premium payments are one of the biggest expenses that most people have after paying their mortgage.
You can fight back, and you do have rights. If you can show that your insurance company denied your benefits in “bad faith,” you may be able to sue the insurance company for additional damages in addition to making them pay for your care.

What Does “Bad Faith” Mean?

Bad faith means an insurance company is unreasonably withholding payment for coverage that you’ve paid for. An insurance policy is really a contract between you and the insurance company. You are required to pay your monthly premiums in exchange for the security of knowing that the company will pay for claims. This concept is true whether the policy covers your car, your house or your health.
When you keep your end of the bargain by paying your premiums, but the insurance company doesn’t, that’s just wrong. If they look for a way to avoid investigating or paying a legitimate claim, they are acting in bad faith under the law.

Should My Policy Cover My Care?

That’s one of the first things we’ll investigate. Every policy is different and covers—or excludes—care that you may not realize is excluded. That’s why it’s important to consult with a lawyer familiar with these claims as soon as possible. However, there are certain basic coverages that federal law now requires in every policy:
- Coverage for pre-existing conditions
- Preventative care without charge
- Expanded coverage for young adults
How Can a Lawyer Help?

In some cases, when a lawyer gets involved, the insurance company starts to take your case more seriously. Often, we can resolve the situation by contacting your insurance company and reminding them what the law says. In these cases, the insurance company can avoid a bad faith claim by paying for your care as it should have from the beginning.
In other cases, if the insurance company denies your claim, we can file a bad faith lawsuit against them. If we determine that the insurance company acted in bad faith, we must prove that they withheld your benefits and that they acted unreasonably by doing so.

Contact Us for Help

We can help you recover not only the benefits to which you are entitled, but additional compensation for your financial losses and pain and suffering. Contact us to learn more about whether you may have a Bad faith insurance claim and how we can help you.
February 15, 2019
Commercial Insurance and Smoke Damage: Is It Covered?
Have you experienced smoke damage due to a fire within your commercial business? Or, did a fire in the business next door cause smoke damage to your property? If so, you might be wondering if your commercial insurance policy will cover proper cleaning and maintenance. Rest assured, most smoke damage is usually considered a covered loss.

Steps to Take After Smoke Damage Occurs

Smoke damage can reduce the quality of air within your business. It’s important that you take the necessary steps to help remove the smoke damage from your building.
- Call your insurance company: At the first sign of smoke damage, call your insurance company. You’ll want to make sure smoke damage repair is covered in your policy prior to moving forward.
- Consider professional cleaning or remediation: Professional restoration and cleaning companies can perform remediation to clear your business of smoke. Due to the danger of smoke, it’s best to leave this to the professionals, instead of trying to do it yourself.
- Check your safety measures: Now is a great time to check smoke alarms, carbon monoxide detectors, and fire extinguishers to ensure they’re up to date and working properly for future occurrences.
What Can I Do If My Insurance Acts in Bad Faith?

Even though fire and smoke can be detrimental to your business, some insurance companies may still take steps to deny or delay paying your claim, acting in bad faith. In some cases, insurance companies may assume arson is the cause, refusing to pay the claim. If this happens to you, a professional attorney can help you protect your rights.
Your insurance policy is a contract between you and the insurer. And even though insurance companies believe most individuals will not fight their decision, a lawyer can make all the difference in recovering assistance for the damage.

Has Your Business Experienced a Fire or Smoke Damage?

You shouldn’t wait to seek out help. Smoke damage can be harmful to your employees and the customers that visit your business. Call your insurance company and reach out to a professional for help. If your insurance company has refused to pay, let us help by sending us a message today!
January 18, 2019
What Do You Get If Your Bad Faith Insurance Claim is Successful?
Insurance companies will accept your premium payments with a smile, but when it comes time for them to actually handle a claim on your behalf, that smile quickly disappears. Their communication with you drops off, long delays become the norm, and you feel like you are being given the run-around.
When it gets to a certain point, you start to wonder if there is anything you can do to require the insurance company to treat you fairly. Fortunately, the answer may be yes. When insurers fail to act in good faith and handle your claim fairly, you might be able to pursue what’s known as a bad faith insurance claim.
Bad faith comes in different forms, many of which we wrote about in this earlier post. However, what does the State of Texas law allow you to recover?

What Financial Recovery Might Be Available Through a Bad Faith Claim?

If you and your attorney can prove that the insurance company has acted in bad faith, Texas law allows you to recover:
- As much as three times what you would have received had the insurance company paid the claim in good faith
- Attorney’s fees
- Court costs such as filing fees, copies, etc.
- Interest
- Compensation for pain and suffering, in certain cases
- Punitive damages, in particularly egregious situations
What Should You Do if You Think Your Insurer is Acting in Bad Faith?

Please keep in mind that bad faith insurance claims are very fact-specific, and every case is different. And while we’ve just talked about what you could be entitled to at the end of a successful case, you should be thinking about the beginning of the case as well.
If you suspect bad faith by your insurance company, one of the first things to do is gather up records. Collect copies of every letter or document that you sent to the insurer, and every item they send to you. Good documentation will help you and your attorney greatly.

Reach Out to an Experienced Insurance Attorney

When you suspect bad faith, don’t hesitate to reach out to an experienced Dallas-Fort Worth insurance lawyer. Consulting with an attorney is the best way for you to understand what exactly is happening and what can be done to fix it. For answers to your questions, send us a message.
December 21, 2018
When Your Insurance Company Doesn’t Treat You Fairly
When you buy insurance for your business or for your home or car, you expect your insurance company to honor the terms of your policy. If you pay for insurance protection, you expect the insurance company to pay when you must make a claim. The concept is simple and straightforward—until the insurance company flexes its muscles and denies payment.
This happens more often than people realize. It happens in both commercial and personal claims. And, in either case, the insurance company is often acting in “bad faith.” This is a legal concept that means you are not being treated fairly by your company.

Examples of Bad Faith Behavior

Under most states’ laws, the insurance company owes you a duty to act in “good faith.” It cannot look for ways to escape its obligations that it agreed to, in a policy for which you’ve paid. Nonetheless, many companies consistently and intentionally do the following types of things to avoid paying on claims:
- Deny coverage without a valid reason or offer only a small fraction of what your case is really worth
- Withhold information from you that helps you recover
- Fail to conduct a proper and timely investigation into the cause of an accident or basis for a claim
- Neglect to pay a claim within a reasonable time or provide an explanation for the delay
- Fail to simply confirm coverage, disclose policy limits or respond to a demand for payment
What Legal Options Do You Have?

In many cases, just getting a lawyer involved increases the chances that the insurance company will stop taking advantage of you and either start negotiating or pay up. This behavior happens often in disability claims, damage to commercial buildings and in homeowner claims after natural disasters.
Even though insurance companies have strong and effective lobbies that seek to limit your rights as policyholders, the courts often protect you—the policyholder—if you have to file a lawsuit. Depending upon the facts of your case, the investigation, the coverages and other factors, your attorney will come up with a strategic plan targeted to get them to honor the terms of your policy.

Contact Us if Your Insurance Company Is not Being Fair

Our Texas attorneys have experience handling bad faith insurance claims. Schedule a consultation with us to discuss your case and how we can help you. We’ll review your policy and determine how best to protect your rights under your policy. Call us at 972-450-1418 or contact us online.
October 7, 2018