Can I Sue My Insurer If My Hurricane Beryl Claim Was Denied?
As Texans prepare for upcoming storms and prepare their insurance policies for hurricane season, some are still reeling from Hurricane Beryl. Although many claims deadlines have passed, many have been delayed, underpaid, or denied.
Yes, You Can Sue Under Certain Circumstances
Yes, you can sue your insurer if your Hurricane Beryl claim was denied, but only if they acted in "bad faith." As a policyholder, you have the right to sue an insurance company if you believe they are engaging in unfair settlement practices. However, a simple disagreement over coverage isn't enough—you must prove the insurer violated Texas law.
What Constitutes Bad Faith in Texas
Texas recognizes two types of bad faith claims. Under common law, you can show that your insurance company denied your claim even though liability was reasonably clear. The statutory route involves proving violations of the Texas Insurance Code, particularly Chapter 541 (the "Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Act") or Chapter 542 (the "Unfair Claim Settlement Practices Act").
Denying claims without conducting a thorough investigation, failing to give a plausible rationale for the denial, misrepresenting the provisions of the policy, or excessively delaying payment are examples of common bad faith practices.
Steps Before Filing a Lawsuit
You can't immediately sue. You must first exhaust the insurer's internal appeals process. Start by filing an appeal with your insurance company, then consider filing a complaint with the Texas Department of Insurance at 800-252-3439. If the insurer does not respond appropriately, you can file a complaint with the Texas Department of Insurance, the state's insurance regulatory body.
Time Limits and Potential Damages
Texas has a two-year statute of limitations for launching a bad faith insurance action from the date of the first bad faith conduct, so you need to act fast. If you win, you could get up to three times the cost of repairs and lawyer fees that you need.
Get Legal Help
Don't attempt to manage this on your own. Attorneys with experience work for insurance firms, and instances involving bad faith necessitate thorough evidence of unreasonable behavior. The majority of insurance lawyers take cases on a contingency fee basis, which means you don't pay until you win. Speak with a Texas bad faith insurance lawyer who can examine your policy, determine whether your denial was illegal, and help you navigate the court system.
