Hurricanes

Hurricanes bring sustained winds that can range from 74 mph to over 156 mph. As such, Texas requires insurers to provide coverage for wind damage under windstorm insurance available through private insurers who operate in Texas or via the Texas Windstorm Insurance Association (TWIA). Windstorm coverage is applied to any loss that could have been avoided if wind hadn’t damaged a structure. If your policy covers wind damage, you may find it includes a separate deductible for hurricanes that is greater than a standard deductible; and, coverage limits will apply.

In addition to separate hurricane deductibles and windstorm coverage, many Texans also need to purchase flood insurance. Homeowners insurance, for example, covers water damage caused by burst pipes and leaky appliances, but it does not cover damage caused by flooding. Texas law does not require policyholders to have it, but a lender may require flood insurance when buying residential real estate in high-risk areas. This insurance covers flood damage sustained through unsealed doors and windows and other vulnerabilities in a home unrelated to wind damage. Due to our heavy rains and propensity for tropical storms and hurricanes, it’s a good idea for Texas homeowners to buy flood insurance even if they don’t have to.

Many homeowners and commercial property owners are affected by a hurricane, so in the aftermath, insurers are looking at costly payouts to hundreds of thousands of people reaching into the millions and potentially billions of dollars. Paying out on this many claims is obviously expensive for insurance companies, so to retain profits many will deny legitimate hurricane claims. Having your insurance claim denied is frustrating and can leave you homeless or without a place to run your business that supports your livelihood.

Denying a legitimate claim is considered an unfair settlement practice and is done in bad faith. According to the Texas Insurance Code, common bad faith practices by insurance companies can include but is not limited to:

• Misrepresenting terms of the insurance policy
• Failing to provide a timely and fair settlement of the claim
• Refusing to pay a claim without conducting a reasonable investigation
• Using unqualified adjusters to estimate damages
• Requiring extensive and unnecessary documentation or paperwork
• Claiming the damage was preexisting or caused by something other than the hurricane
• Claiming necessary repairs are in fact not needed
• Unreasonable delays without an explanation
• Failing to acknowledge the receipt of a claim
• Intentionally misrepresenting claims information
• Withholding claims information

These and many other forms of bad faith insurance practices could be sufficient to file a lawsuit against your insurance company. You can be prepared for a potential lawsuit by taking photos, videos, and making notes about your property damage, keeping copies of all communications and documentation you receive from your insurance company, retaining repair records for work you had done yourself, and other such steps.

Texas is second in the nation for most hurricane landfalls. If your home or business was damaged by a hurricane or tropical storm, our firm is committed to helping you recover. First and foremost, if you’re going to hire a lawyer, make sure it is the right one for your case. Danny Ray Scott and Gulf Coast Insurance Lawyers are exclusively policyholder rights advocates, meaning the entire law firm is devoted to handling only first party insurance cases. If you believe your insurance company has not treated you fairly or has wrongfully denied or underpaid a valid claim, you should speak with an attorney who understands bad faith claims in our state, so contact us today for more information on how we can help.