Bad Faith Insurance Claims in Texas
When you pay insurance premiums, whether for your car, home, or other property, your insurance company has a legal duty to act in good faith and deal fairly with you. This means that if a situation arises where you need to make a claim—like being injured by an uninsured driver or suffering property damage from a storm—the insurer is obligated to honor your policy and provide the coverage you paid for.
Unfortunately, some insurance companies put their own financial interests ahead of their policyholders. This is called bad faith insurance practices, and it can take many forms. For example, an insurer may unreasonably deny a claim, misinterpret policy language to avoid paying, delay the claims process in hopes that you give up, or fail to respond altogether. These actions are not just frustrating—they can prevent you from receiving compensation you are legally entitled to, leaving you to bear the costs of injuries or property damage.
Texas law recognizes the serious nature of bad faith practices. The Texas Insurance Code and the Texas Deceptive Trade Practices Act (DTPA) provide remedies for policyholders whose insurers act in bad faith. When an insurance company breaches its duty of good faith, they may not only be required to pay the benefits owed under your policy but also additional damages for their wrongful conduct. This can include compensation for financial losses, emotional distress, and legal fees.
Navigating bad faith claims can be complex. Insurance companies are businesses designed to protect their bottom line, and they often employ adjusters and attorneys specifically to minimize payouts. This is why having an experienced personal injury attorney is critical. A skilled attorney can review your insurance policy, identify instances of bad faith, and take legal action to hold the insurer accountable. They ensure that you receive the full compensation you are entitled to under your policy and Texas law, while also pursuing additional damages if the insurer acted improperly.
