Whether you’ve suffered property damage after a hurricane, hailstorm, or fire, you pay your premiums expecting your insurer to honor its promise when you need help most. Unfortunately, that does not always happen.
If your insurer has refused to pay or is delaying your claim without justification, you may have legal options under Texas law. The insurance attorneys at McLaurin Law represent policyholders who are facing unfair insurance practices throughout Houston. Our goal is to hold insurers accountable and protect your contractual rights.
First-Party vs. Third-Party Insurance Claims
Understanding the type of claim you’re filing is important when evaluating your legal remedies.
First-Party Insurance Claims
A first-party claim is filed with your own insurance company. Examples include:
- Homeowners insurance claims covering hurricane, hail, or fire damage
- Commercial property insurance claims covering building damage
- Business interruption insurance claims covering income losses
In these cases, you are seeking benefits directly under your own policy. First-party claims are most commonly associated with bad-faith insurance disputes.
Third-Party Insurance Claims
A third-party claim is filed against someone else’s insurance company. For example:
- A visitor filing a liability claim under a homeowner’s policy
- A customer filing a claim against a business’s liability coverage
While disputes can arise in both types of claims, bad-faith lawsuits more often involve first-party claims.
Legal Remedies for Insurance Disputes in Texas
When you purchase insurance, you enter into a legally binding contract. If your insurer refuses to pay what is owed, several remedies may be available.
- Invoke the appraisal process: This allows both you and the insurer to hire independent appraisers to determine the value of the loss. If the appraisers disagree, a neutral umpire may resolve the difference. Appraisals can sometimes resolve valuation disputes without litigation.
- Submit additional documentation or demand reconsideration: Some denials result from missing documentation, errors, or incomplete investigations. Providing additional evidence may prompt reconsideration.
- File a complaint with the Texas Department of Insurance: If you believe your insurer is acting unfairly, you may file a complaint with the Texas Department of Insurance. While this does not replace legal action, it may trigger regulatory review of the insurer’s conduct.
- File a lawsuit for Breach of Contract or bad faith: If informal efforts fail, litigation may be necessary. If your insurer breached the contract or violated that duty, you may pursue compensation beyond the original claim amount.
What Are Bad-Faith Insurance Practices?
Not every disagreement over claim value qualifies as bad faith. However, certain conduct may indicate unlawful behavior. Examples of bad-faith practices include:
- Denying a claim without providing a clear and valid reason
- Failing to conduct a reasonable investigation
- Misrepresenting policy terms or coverage limits
- Claiming there is no record of your policy or premium payments
- Repeatedly requesting unnecessary documentation to delay payment
- Failing to attempt a fair settlement when liability is clear
- Threatening cancellation after a legitimate claim is filed
Insurance companies operating in Texas must handle claims fairly and in good faith. When they fail to do so, they may face legal consequences.
Protect Your Rights Against Unfair Insurance Practices with McLaurin Law Today
If your insurance company is ignoring your calls, delaying payment, or denying a legitimate claim, you do not have to accept that decision without question. At McLaurin Law, we represent policyholders throughout Houston and across Texas in insurance disputes. Our mission is straightforward: to ensure insurers honor the promises made in their policies. If your claim has been denied, delayed, or underpaid, contact us today to discuss your options. You deserve fair treatment, and we are here to help you pursue it.
Frequently Asked Questions about What To Do When Insurance Companies Refuse to Pay
- Can I sue my insurance company in Houston for denying my claim?
Absolutely, if your insurer wrongfully denied, delayed, or underpaid your claim without a reasonable basis, you may have grounds to file a lawsuit under Texas law for breach of contract or bad faith.
- What is considered bad faith insurance in Texas?
Bad faith occurs when an insurance company fails to reasonably investigate a claim, misrepresents policy terms, delays payment without justification, or refuses to pay a valid claim.
- How long do I have to file an insurance lawsuit in Texas?
In many cases, the statute of limitations for breach of contract or bad faith claims in Texas is two years. However, policy language and specific circumstances may affect deadlines.
- Can I dispute a low settlement offer from my insurance company?
Yes, you are not required to accept a low offer. You can negotiate or request an appraisal if your policy allows.
- What should I do if my insurance company keeps delaying my claim?
Document all communication, keep copies of submitted materials, and request written explanations for delays. Unreasonable delays may support a bad-faith claim.
- Can my insurance company cancel my policy after I file a claim?
In Texas, insurers generally cannot cancel a policy mid-term solely because you filed a legitimate claim. If you suspect retaliation, consult an attorney.
