When Your Insurer Says No, Texas Law Says You Have Options
Imagine coming home to a roof shattered by Texas hail, only to have your insurance company reject your claim. It sounds like a nightmare, but it’s a reality for many Texans. Nearly half of homeowners’ insurance claims in Texas were recently closed with no payment at all. If you’re a storm victim, you know the frustration of paying premiums for years only to be denied or lowballed when you need help most. We understand your anger and anxiety – and we have good news. More Texas storm victims are fighting back by filing bad faith claims against their insurers, and as a result, they’re winning much larger settlements. This article will explain why these bad faith claims are so powerful, how Texas laws protect you, and what steps you can take to turn a hailstorm disaster into a fair payout.
Don’t let your insurer get away with bad faith. If your Texas storm damage claim was denied, delayed, or underpaid, JCE Law Group is here to help you fight back. Call us today at (504) 754-5884 or visit Contact Us to schedule a free consultation. We specialize in bad faith insurance claims and have helped countless homeowners secure the larger settlements they deserve, with no upfront fees, no pressure, just results.
Bad Faith Insurance Claims in Texas: Know Your Rights
“Bad faith” is a legal term for when an insurance company betrays your trust – for example, by unreasonably denying, delaying, or underpaying your valid claim. Under Texas law, insurers owe you a duty of good faith and fair dealing. That means they must handle your claim honestly and fairly. If they don’t, you have the right to hold them accountable through a bad-faith insurance claim.
Texas law is on your side. The Texas Insurance Code explicitly prohibits insurers from using certain unfair tactics. For instance, an insurer cannot misrepresent important facts or policy provisions related to your coverage. They also cannot drag their feet on a claim that’s clearly covered – in other words, if liability is reasonably clear, they must attempt a prompt, fair settlement. And perhaps most importantly, they cannot flat-out refuse to pay a claim without first conducting a reasonable investigation into the damage. These protections mean that if your insurer is giving you the runaround, they may be violating Texas law.
How does a bad-faith claim lead to a bigger settlement? Texas gives policyholders powerful remedies when an insurer acts in bad faith. If you sue and prove the company knowingly handled your claim unfairly, a court can **award you up to three times your actual damages as a penalty. (In simple terms, “knowingly” means the insurer was aware it was doing something unfair or deceptive.) Insurers might also have to pay your attorney’s fees and even interest on delayed payments. Facing these potential penalties, insurance companies often choose to settle for a much higher amount rather than risking a bad-faith trial. This is a big reason Texas storm victims’ bad faith claims often result in larger settlements – the law puts real teeth behind your rights.
You do have time limits. Keep in mind, Texas generally only allows two years to file a bad faith lawsuit. This clock usually starts when you learn of the unfair denial or underpayment. Two years may sound like a long time, but it can pass quickly, especially if you spend months trying to negotiate. The key is not to wait until it’s too late. If you suspect bad faith, consider speaking with a lawyer sooner rather than later so you don’t lose your chance to take action.
Timeline: From Claim Denial to Settlement in Texas
1. Storm Damage & Filing the Claim: After a hailstorm, hurricane, or other severe weather, report your property damage claim to your insurer as soon as possible. Many policies require prompt notice (sometimes within a year or less of the storm). Early reporting helps prevent the company from later claiming you waited too long.
2. Insurer’s Response (15–45 Days): By law, Texas insurers must act promptly. They typically send an adjuster to inspect the damage. Within a few weeks, the insurer should accept or reject your claim (Texas’s prompt payment rules usually give around 15 business days to decide, extendable to 45 days in special cases). If they need more information, provide it quickly to keep things moving.
3. Denial or Lowball Offer: If your claim is denied outright or you get a shockingly low settlement offer, you’re now facing the critical decision point. The company’s letter should state a reason – maybe they cite an exclusion, say the damage isn’t covered, or claim repairs cost less than your deductible. Don’t be discouraged. Many Texas storm victims receive initial denials or tiny offers, even for major damage. This is unfortunately common.
4. Challenge and Negotiation: You have the right to challenge the decision. Start by gathering evidence: photos of damage, repair estimates from independent contractors, and any reports (for example, a roofer saying you need a full roof replacement). Send this information to the insurer and ask for reconsideration or a better offer. This is an insurance negotiation phase. During severe weather insurance negotiations in Texas, it’s wise to keep communication in writing and note dates – it creates a paper trail of your efforts.
5. File a Complaint (Optional): If the insurer still won’t budge, you can file a complaint with the Texas Department of Insurance (TDI). TDI can’t force the company to pay you, but they will investigate patterns of complaints. TDI advises that if you believe a claim was unfairly denied or closed, you should file a complaint. Sometimes, the mere involvement of regulators pressures an insurer to take a second look.
6. Consult an Attorney: When you hit a wall or suspect the insurer is playing dirty, consult a Texas property damage attorney. A lawyer experienced in bad faith claims can review your case and advise if the insurer’s conduct crosses the line. At this stage, simply having an attorney get involved can change the game – we often see insurers suddenly become more cooperative once legal pressure is applied.
7. Bad Faith Lawsuit & Settlement: If the insurer still won’t do right by you, your attorney can file a bad faith lawsuit. This turns your dispute into a formal legal claim. Now the insurer faces potential penalties under Texas law (remember that threat of triple damages and fees). In many cases, the company will offer a much higher settlement to avoid litigation. If not, the case may go to court, where a judge or jury could order the insurer to pay not just what you were owed originally, but additional damages for their bad behavior. Either way, pursuing a bad faith claim often results in a far better financial outcome than accepting a denial. It’s not about being “sue-happy” – it’s about making the insurance company keep its promise.
Why Insurance Companies Deny Storm Claims (And What Bad Faith Looks Like)
After a Texas storm – whether a hailstorm in Dallas or a hurricane on the Gulf Coast – you’d hope your insurer would have your back. Unfortunately, insurance companies deny or underpay many storm damage claims as a matter of routine. Understanding why this happens can help you spot when it’s happening to you.
Common excuses for denial or underpayment include:
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**“Pre-Existing Damage” or Wear and Tear – A classic insurer move is to claim the damage was not caused by the storm at all. For example, if hail bruises your roof, they might insist those cracks were there before (perhaps due to age or lack of maintenance). This lets them deny the claim as not covered. Be aware: If you have an older roof, they may try this angle, but it doesn’t automatically make them right.
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Policy Exclusions or Fine Print – Home insurance policies often carve out certain perils. In Texas, many policies exclude coverage for wind or hail damage unless you pay extra, or they impose special deductibles. Insurers sometimes mislead customers about what’s covered. (Texas law forbids misrepresenting a policy provision to deny a claim, but it still happens.) Always read your policy or have an attorney review questionable exclusions.
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Huge Deductibles – Texas has seen insurers raise deductibles for hail and wind to very high levels. If your deductible is $5,000 and your roof repairs are estimated at $4,000, they’ll pay nothing, claiming the loss doesn’t meet your deductible. Many homeowners only discover their deductible after damage occurs. It’s a nasty surprise that leaves you effectively uninsured for moderate damage. While a big deductible isn’t “bad faith” by itself (it’s in the contract), some companies strategically use deductibles to avoid paying anything.
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Delay and Lowball – Another tactic: slow-walk the claim and hope you give up. They might delay inspections or keep asking for more documents unnecessarily. When they do make an offer, it might be far below the actual repair cost. This “delay, deny, defend” playbook is so common that an expert literally wrote a book called Delay, Deny, Defend about it. If you notice the adjuster is stalling or the offer won’t even cover basic repairs, you could be seeing bad faith in action.
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Aggressive Denials After Big Storms – When a major disaster strikes (think a huge hailstorm or hurricane), insurers face thousands of claims at once. Unfortunately, instead of promptly paying all valid claims, some companies go into cost-cutting mode. A consumer advocacy group notes that insurers have been “getting aggressive” in denying hail claims lately – labeling roof damage as merely cosmetic or blaming wear-and-tear so they don’t have to pay for full repairs. In other words, after severe weather, some insurers look for any excuse to minimize payouts.
So when does a denial cross the line into “bad faith”? A legitimate claim dispute (say, a genuine disagreement over damage extent) isn’t bad faith. Bad faith is when the insurer’s excuses are illegitimate – for example, ignoring clear evidence of damage, refusing to investigate your claim properly, or inventing reasons not to pay. Texas law specifically outlaws many of these behaviors, such as failing to conduct a reasonable investigation or not even explaining their denial. If your insurer’s actions seem fishy or unjustified, they might be acting in bad faith.
From our experience, I often tell clients: Don’t automatically accept what the insurance company says. Trust your instincts. If it feels like they’re not treating you fairly, you’re probably right – and you don’t have just to take it.
When Insurance Negotiations Stall After a Texas Storm
You’ve filed a claim and gotten a denial or a low offer – what now? Many people try to negotiate with their insurance company first (as they should). But what happens when those insurance negotiations stall, especially in the wake of a severe Texas storm?
First, know that you’re not alone. After a big storm, insurers often receive a flood of claims. Adjusters might be overwhelmed, and some companies start cutting corners. They might offer quick, low settlements to clear cases faster, or deny borderline claims, hoping homeowners won’t fight back. In Texas, insurers also know that a 2017 law reduced some penalties for delaying or underpaying claims, which some say emboldened companies to deny more claims without fear. It can feel like the deck is stacked against you during negotiations.
So what can you do if you feel stuck?
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*Stay persistent: Don’t be afraid to escalate your complaint within the insurance company. Ask to speak to a supervisor or claims manager. Document every call and letter. This shows them you mean business.
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Leverage your evidence: If you’ve gathered independent estimates or expert opinions (like a roofer’s report), use them as pressure. For example: “I have a report from a licensed contractor stating my entire roof needs replacement due to hail. Your adjuster saying only a few shingles were damaged doesn’t add up. Please re-evaluate in light of this evidence.”
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Mention the “B” word (Bad Faith): You don’t need to threaten a lawsuit outright, but it’s okay to remind the insurer of their legal obligations. For instance: “I know Texas law requires insurance companies to handle claims fairly and promptly. I feel like that’s not happening here – can you help me understand why this isn’t bad faith?” Sometimes, hinting that you understand your rights will make the insurer more cautious in handling your claim.
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Know when to get help: If weeks are passing with no progress, or the insurer won’t budge, it’s time to consider outside help. This could mean contacting an attorney (who can then take over negotiations) or, as mentioned, filing a complaint with state regulators. We have seen firsthand that once a lawyer from our team at JCE Law Group gets involved in severe weather insurance negotiations, Texas insurers often change their tune. Suddenly, calls get returned and offers get more reasonable. It’s a shame that it takes legal pressure, but it frequently does.
Remember, negotiation is just the first half. If it fails, you still have options (legal action) as we’ve covered. Don’t view a stalled negotiation as the end of the road – view it as a signal that it might be time to elevate the strategy.
Bad Faith Claims: Your Key to a Bigger Settlement
Why do Texas storm victims’ bad-faith claims tend to result in bigger settlements than the original insurance offer? The answer lies in the leverage these claims create. When you file a bad faith lawsuit, you flip the script – now the insurer is on the defensive.
Higher Stakes for the Insurer: If a court finds the insurer acted wrongfully, they could owe much more than just fixing your house. Texas’s bad faith laws allow for penalty damages. For example, if it’s proven that the insurer knowingly handled your claim in bad faith, they might have to pay up to three times your actual damages as punishment. Imagine you had a $50,000 storm loss that was denied – in a bad faith verdict, the company could be on the hook for up to $150,000 plus the original $50,000, totaling $200,000. That’s a strong incentive for insurers to avoid losing in court.
Attorney’s Fees and Interest: On top of that, Texas law often makes insurers pay the policyholder’s attorney fees if the policyholder wins a bad faith or related claim. There’s also a “prompt payment” statute requiring insurers to pay interest (historically 18% per year, now around 10% after the 2017 changes) on claims they delayed without a valid reason. These extra costs add up. Simply put, a drawn-out fight can cost the insurer far more than if they had just paid your claim to begin with.
The Settlement Sweet Spot: Knowing all this, insurance companies usually prefer to settle bad faith cases out of court. Once you’ve filed suit (or sometimes even when a well-prepared demand letter from your lawyer lands on their desk), the conversations shift. What might have been a $0 denial or a $5,000 lowball can turn into a much more substantial offer. It’s not charity – it’s the insurer making a calculated decision to pay you more now rather than risk paying a lot more later if they lose in front of a judge or jury.
Real-World Impact: We’ve seen scenarios where a homeowner’s claim for a new roof (maybe $20,000 in damage) was initially brushed off by the insurer as “below deductible” or “not covered.” After filing a bad-faith claim, that same homeowner ends up with a settlement not just covering a new roof, but also additional funds for the trouble they went through. Those bigger settlements can include money for repair delays, additional living expenses (if you had to live elsewhere), and sometimes even extra for the hassle and stress (within what the law allows).
It’s important to note: Bad faith claims aren’t about greed – they’re about accountability. When insurance companies play hardball and violate the rules, the law steps in to level the playing field. The result is that you, the policyholder, gain negotiating power. A bad-faith claim signals that you won’t be bullied, and it invokes the strong consumer protection laws Texas has put in place to keep insurers honest. That’s why pursuing a bad faith claim is often the key to unlocking the fair, and often higher, compensation you truly deserve.
Getting a Fair Resolution for Your Property Damage Claim
Picking up the pieces after a storm is hard enough – you shouldn’t have to fight your insurance company for a fair resolution. Unfortunately, for many Texas homeowners, resolving a property damage claim feels like an uphill battle. This section discusses how you can achieve the resolution you need and deserve, and what your options are if your insurer won’t cooperate.
Start with what you’re owed. The ultimate goal is to get the full cost of repairs or replacement for your damaged property. This includes not just obvious damage (like a destroyed roof or flooded interior) but also related expenses: maybe damaged personal items, debris cleanup, or living costs if you had to stay in a hotel. Make sure you’ve documented all your losses. A fair settlement should make you whole again, as if the storm hadn’t happened (at least financially).
Negotiation vs. Legal Action: As we covered, try the normal channels first – talk it out with the insurer, escalate to supervisors, use the appraisal process if your policy has one. But if those routes fail, legal action may be necessary. Many property damage disputes in Texas get resolved only after a lawsuit is filed or strongly threatened. It’s not that every claim ends in court – far from it. It’s that sometimes filing suit is what it takes for the insurer to put a fair number on the table.
Keep it professional: Throughout the process, keep your tone polite but firm. In communications, focus on facts and policy terms. You can say things like, “According to my policy and the evidence of damage, I believe I’m entitled to X. Please explain why you are not paying this amount.” Make them justify their shortfall in writing. This not only helps potentially build a bad-faith case if needed, but also sometimes shames them into correcting an obvious underpayment.
Consider alternative dispute resolution: In some cases, mediation can help. Texas courts often encourage mediation for insurance disputes. In mediation, you (with your lawyer) and the insurance company sit down with a neutral mediator to see if a settlement can be reached. It’s less formal than a trial and can be faster. Many insurers will agree to mediation once a lawsuit is filed. It’s yet another avenue to get to a satisfactory resolution without the time and expense of a full trial.
Why JCE Law Group Is the Right Choice
When you’re fighting a giant insurance company, you want a trusted ally in your corner. That’s where JCE Law Group comes in. Our firm has years of experience helping Texas storm victims take on insurance companies, and we’re passionate about standing up for policyholders’ rights. Here’s why we believe we’re the best choice to help with your bad faith insurance claim:
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Focused on Storm Damage Claims: At JCE Law Group, we understand the unique challenges of Texas severe weather claims. From hail in Fort Worth to hurricanes in Houston, we’ve seen it all. We know the insurance company playbook and how to counter their tactics. Our attorneys stay up-to-date on Texas insurance laws and recent cases, so we can anticipate the insurer’s moves and push back effectively.
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Personalized, Empathetic Support: We’re not a stuffy law firm that treats you like just another case. We truly care about your situation. When your home is wrecked by a storm and your claim is wrongly denied, we treat it as the injustice it is. Our team will listen to your story, explain your options in plain English (no legalese), and work with you on a strategy that fits your needs. You’ll never feel in the dark – we keep you informed at every step.
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Proven Negotiators and Litigators: JCE Law Group is known for being tough but fair in negotiations. Insurance companies recognize our name and know we won’t accept lowball offers. Often, we can reach a solid settlement through skillful negotiation or mediation (saving you time and stress). But if the insurer refuses to do what’s right, we are fully prepared to take the fight to court. Our legal team has successfully litigated bad faith cases and won significant recoveries for clients. We prepare every case as if it may go to trial – that thorough approach often leads to better settlements without trial.
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No Fee Unless We Win: Hiring a lawyer might seem costly, but with JCE Law Group, it won’t add to your burden. We handle property damage bad faith cases on a contingency fee basis. That means you pay nothing up front. We only get paid if we recover money for you. This aligns our interests with yours – we’re motivated to get you the maximum compensation possible. Plus, Texas law may require the insurer to cover your attorney fees in a bad faith win, which we will pursue so you keep as much of your settlement as possible.
When dealing with severe weather insurance negotiations in Texas, having JCE Law Group on your side sends a clear message to the insurer: you mean business and you have the firepower to back it up. Our combination of local Texas knowledge, legal expertise, and genuine compassion for clients is what sets us apart. We take pride in helping storm victims turn a “hail to hell” experience into a story of justice served.
Frequently Asked Questions (FAQs)
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What is a “bad faith” insurance claim?
A bad-faith insurance claim is a legal action you can take against an insurance company for handling your claim unfairly or dishonestly. In Texas, insurers must act in good faith – meaning they should promptly and fairly pay valid claims. If they deny a claim without a valid reason, delay payment unreasonably, or otherwise violate their duty, you may have grounds for a bad faith claim. Essentially, you’re saying the insurer didn’t hold up their end of the bargain and broke the rules set by law.
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How do I know if my insurer acted in bad faith on my storm damage claim?
Look for red flags. Common signs of bad faith include: lack of investigation (the adjuster barely looked at the damage but denied it anyway), misrepresentation (they said your policy doesn’t cover something it actually does), undue delays (they keep stalling or asking for irrelevant paperwork), or a completely unreasonable denial or low offer that contradicts the evidence. If your neighbors all got new roofs after the hailstorm but your identical damage was denied, that’s suspicious. Also, if the company won’t explain its decision or keeps changing its story, it could be acting in bad faith. Trust your gut – if it feels wrong, talk to a lawyer or file a complaint with TDI to investigate. You have a right to honest treatment.
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What can I recover through a bad-faith insurance lawsuit in Texas?
If you win a bad faith lawsuit, you can recover the amount of your original claim (the cost to repair your property) plus additional damages. Those additional damages can include: extra money for any financial losses caused by the denial, mental anguish in some cases (if the insurer’s conduct was extreme and it caused you serious distress), and punitive or penalty damages to punish the insurer (such as up to three times your damages if the insurer acted “knowingly” in bad faith). Texas law also allows you to recover attorney’s fees and court costs, so the insurer may have to pay the cost of hiring a lawyer. The goal is to put you in a position as if the insurer had done the right thing to begin with – and then some, to hold them accountable. This is why bad faith claims often result in much larger settlements than the initial claim amount.
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Is there a deadline to file a bad faith claim against my insurance company in Texas?
Yes. In Texas, the statute of limitations for most bad faith insurance claims is two years. This generally means you have two years from the date the bad faith occurred or from when you reasonably should have discovered it. In practical terms, it’s usually two years from when your claim was improperly denied or underpaid. There are some nuances – for example, if you didn’t realize right away that the company was acting in bad faith, the clock might start a bit later. However, it’s crucial not to delay. Once that deadline passes, you likely won’t be able to sue. Always consult an attorney as soon as you suspect bad faith, so they can calculate your exact deadline and make sure your rights are protected.
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Can I handle a storm damage claim dispute myself, or do I need a lawyer?
You can certainly handle it yourself, and for minor disputes, it sometimes works out. Start by following the steps we discussed: gather evidence, appeal to the insurance company, and involve TDI. But if your claim is significant (your home has major damage) and the insurer is digging in its heels, having a lawyer can be a game-changer. Insurance companies have teams of adjusters and attorneys on their side; a good property damage lawyer helps even the playing field. They understand the laws, know the tricks insurers pull, and can pressure the insurer in ways you can’t on your own (like filing suit or threat of trial). In our experience, involving a lawyer often leads to faster and higher payouts. And since many lawyers work on contingency (no-win, no fee), there’s little downside to getting a professional involved. In short, you don’t need a lawyer to fight a denied claim, but having one greatly increases your chances of success, especially for complex or high-value cases.
Don’t Deal with Property Damage Alone, Call a Lawyer
Dealing with property damage after a Texas storm is hard enough – you shouldn’t also have to battle an insurance company that’s supposed to be on your side. Unfortunately, as many have learned, severe weather insurance negotiations in Texas can become a dead end when insurers act in bad faith. That’s when turning to the law is crucial. By understanding your rights and being willing to pursue a bad faith claim, you empower yourself to get the compensation you truly need to rebuild. Remember, you don’t have to face this fight alone. Whether it’s through persistent self-advocacy or with the help of a seasoned Texas property damage lawyer, help is available. Don’t settle for less than what you’re owed – with the right approach, you can hold your insurer accountable and recover from the storm on your terms.
Don’t let your insurer get away with bad faith. If your Texas storm damage claim was denied, delayed, or underpaid, JCE Law Group is here to help you fight back. Call us today at (504) 754-5884 or visit Contact Us to schedule a free consultation. We specialize in bad faith insurance claims and have helped countless homeowners secure the larger settlements they deserve, with no upfront fees, no pressure, just result
