Handling an Underpaid Insurance Claim in Texas
Dealing with an underpaid insurance claim can be frustrating, especially after damage to your home or business. In Texas, policyholders have legal rights that protect them from unfair claim practices, but knowing how to take action is key.
Review Your Policy Carefully
The first step is to compare the insurance company’s payment to your policy coverage. Review the declarations page, exclusions, and limits to understand what should have been paid. Sometimes, underpayment happens due to misinterpretation of the policy or missing documentation.
Request a Detailed Explanation
Ask your insurer for a written explanation of how they calculated the payout. Texas law requires insurance companies to provide clear reasoning for their settlement offer. This step helps you identify whether they missed specific repairs, undervalued materials, or miscalculated labor costs.
Document Everything Thoroughly
Gather photos, videos, receipts, and professional repair estimates to support your claim. Independent contractor quotes can show the true cost of repairs, making it easier to dispute the insurance company’s low offer.
File a Dispute or Appeal
Most insurers allow you to file a supplemental claim or appeal. Submit your evidence and a letter explaining why the original payment was insufficient. Be sure to meet any deadlines for submitting additional documentation.
Consider Hiring a Public Adjuster
Public adjusters work for policyholders, not insurance companies. They can reassess your damage and negotiate with the insurer on your behalf. This can lead to a more accurate payout, especially for large or complex claims.
Know Your Legal Rights
Texas has strict laws against unfair claim settlement practices. If your insurer refuses to pay fairly, you may have grounds for a bad-faith claim. Consulting with an insurance attorney can help you understand your options for pursuing additional compensation.
Stay Persistent
Underpaid claims often require follow-up calls, additional documentation, and negotiation. Keeping organized records and staying consistent in your communication increases your chances of a fair outcome.