Recently, the Texas Commissioner of Insurance issued general remarks and official action outlining state law requiring a clear, conspicuous notice at least 30 days in advance when an insurance company offers a renewal policy that reduces coverage. Insurers who do not place these notices conspicuously are subject to administrative penalty fees.

We know that a Replacement Cost Value (RCV) policy is considered to be better than an Actual Cash Value (ACV) policy because, even though the premiums may be higher, 100% of the roof is covered. What you may not know is that your RCV policy could one day change into an ACV policy. When this change occurs, it is your insurer’s responsibility to notify you promptly. If they don’t, they could face administrative penalties.

It is good practice to routinely check your insurance policy once it is annually renewed. The Chad T. Wilson Law Firm recommends this because there is a chance your RCV policy changed to an ACV without your knowledge or consent. Although it is the insurer’s responsibility to notify you when the policy changes to an ACV, sometimes they forget to notify you.

Keep in mind that there may be endorsements on your ACV policy. A twenty-year-old roof has more wear and tear than a new one. The granules have diminished over time. You wouldn’t insure an old car the same way you would a brand-new Maserati. Simply stated, RCVs aren’t typically written for old roofs.

The Texas Commissioner of Insurance has been straightforward with the requirements. For your insurance company to be compliant with modifying your RCV policy to an ACV, your insurer must:

• Provide you a notice in writing 30 days before the policy changes.
• Language must be in bold and clearly, conspicuously placed in the notice.
• Your signature must be on the notice.

Texas Insurance Code 551.1055

Section 551.1055 of the Texas Insurance Code prohibits an insurer from using an endorsement or policy provision that makes a material change to a covered policy, unless the insurer provides the insured timely written notice with an explanation of the change that is conspicuously placed and clearly indicates every material change in the policy, written in plain language.

For example, changing a deductible by $50 is not a material change. Adding an appliance coverage to your overall homeowners insurance policy is not a material change.

Examples of a material change are:

• Reduction in coverage.
• Changes in coverage conditions (RCV to an ACV).
• Changes in the duties of the insured.

Insurance companies don’t want to pay for old roofs because paying for old roofs cuts into an insurance company’s profits, and losing profits is why they deny insurance claims in the first place. If your property insurance claim has been denied, delayed, or underpaid, call the Chad T. Wilson law firm today at (832) 415-1432 and get your case reviewed for free by an expert property litigation attorney.

Not only is roof damage stressful to manage, but you will need to file an insurance claim to get it repaired or replaced. Before going to your insurance company, you will want to know what perils are covered and what limits you have on your homeowners insurance policy. When purchasing an insurance policy and filing claims, you should be aware of the distinction between replacement cost and actual cash value.

What is replacement cost value and actual cash value? 

Replacement Cost Value (RCV) policies will pay the price to repair or replace your damaged property without deducting for depreciation. An Actual Cash Value (ACV) policy will pay the depreciated price to repair or replace your damaged property. Insurance companies typically determine depreciation based on the condition of the property when it was damaged, what a new roof or damaged item would cost, and how long it would endure the elements.  For example, imagine we have two families, the Millers, and the Jones. Each household has the same amount of damage to their roof. Both families have a $1500 deductible. The deductible is what you have to pay out of pocket.

The Millers’ policy is an RCV, which means when the roof is replaced, they will be reimbursed the full cost of the roof repair, subtracting their deductible. The Jones’ policy is an ACV, which translates to them only getting paid for the current value of the roof repairs, subtracting depreciation and the deductible. Which family would you rather be?

Each policy type covers your roof damage, but an RCV policy delivers more financial protection than an ACV policy.

How Does the Type of Insurance Affect My Claim?

Homeowners insurance can cover damages from windstorms and hail, but some policies exclude these types of coverage. This is fairly typical in coastal or high-risk areas. Purchasing a separate wind and hail policy might be in your best interest in these potentially hazardous areas.

Another good bit of advice is to ask your insurance company if your wind and hail policies have separate deductibles. Some policies have unique deductibles that apply to specific parts of your dwelling, like your roof.

Now that you know the differences between insurance policies and why your insurance policy needs additional protections. It’s important to review your homeowners insurance policy before filing a claim. That way you know what to expect when speaking with your insurance company.

Keep in mind, insurance companies deny insurance claims frequently.

Sometimes insurance claims get denied for legitimate reasons, while other times the denial is a mistake or worse. It could be a filing error, a misunderstanding of your policy terms, or a novice claims adjuster that didn’t understand your policy.

If you feel your insurance claim was unjustly denied, file an appeal with your insurer. If this appeal fails and you believe your case has been grossly mishandled, your next step should be to contact the Chad T. Wilson law firm.

Expert Property Insurance Attorneys

We understand living with roof damage and a denied or underpaid property insurance claim can be a difficult, stressful time. Our attorneys will aggressively pursue your insurance company for every dollar you are due. Get your case review for free and call (832) 415-1432 and speak with an expert property insurance attorney today!

Texas Underpaid Homeowners Insurance Claim Victory

Do you have an underpaid homeowners insurance claim?

Many insurance companies regard plumbing to be part of routine homeowner maintenance. Maintenance is entirely the property owner’s responsibility. Damage to pipes that develops over time because of lack of maintenance is typically not covered. Pipes in this state could potentially flood an entire house, causing catastrophic damage! Many Insurance agencies will deny or send you away with an underpaid homeowners insurance claim. For an insurance company to cover a broken pipe, the burst must have occurred suddenly and by accident, and should not have been easily preventable. If an ignored leaking pipe suddenly burst, the insurance company’s agents will look for evidence of a long-term leak and will likely deny your claim. Some insurance policies look at the differences in what is referred to as “resulting damage” versus “initial damage”. If water damage resulting from a broken pipe or appliance is addressed in your insurance policy, then you could be compensated for all or some of the damages…even if those damages did not occur instantly. 

When a pipe does burst, homeowners insurance typically covers carpets or rugs, flooring, drywall, and paint in most cases. Any clean-up service may also be included in your coverage. Sadly, the cost of the problem, repairing the busted pipe or replacing the broken appliance is generally not covered.

What Came First? The Foundation Damage Or The Pipe Burst?

In the case of a client of ours out of Montgomery, Texas, the family of three experienced a pipe burst the wall of their garage. The pipe burst leaked sewage onto the garage floor and the resulting odors penetrated the house for a year before the case was resolved. Because the insurance claim was underpaid, the homeowner had little choice but to clean up the mess himself which ultimately lead to him getting E.coli and requiring urgent medical attention. 

Along with the damage to the garage and living with the sewage smell inside their home for a year, our client lost all personal possessions in the garage when it flooded. Their insurance company sent out an adjuster and an engineer to handle the carrier’s side of the insurance claim and both remarked the damage could be from the foundation moving, citing cosmetic repairs which had been made to the foundation’s corners. Our adjuster determined that the damage was indeed sudden and accidental and covered under the homeowner’s insurance policy. This slight on the insurance company’s end made it possible for us to pursue 8 times the initial payout to our client from the insurance company, allowing our client to make the appropriate repairs and get on with life without the smell of sewage in their home.

What Can You Do To Prevent Your Water Damage Claim From Being Denied?

Make sure you have any repairs to your home well documented. Keep any receipts from any professional services that may have worked on your pipes or home. These records can make or break a denied, delayed, or underpaid homeowners insurance claim. Replace pipes that have outlived their structural integrity. Inspectors can find tell-tale evidence of a slow leak and can deny your insurance claim accordingly. Know where the shutoff valve for your home is at in case you need to turn off the water quickly. Make your best effort to prevent your pipes from freezing. Wrap pipes, leave them to drip when appropriate, heat the home, and so on.

Filing A Claim Tips

• Keep proof that you paid the deductible for your claim. State law allows insurance companies to ask for verification, like a receipt or check stub, that you paid for repairs in the amount of your deductible.
• Keep your receipts for temporary repairs, but don’t make any permanent repairs until the insurance adjuster authorizes you to do so. Failure to do so may complicate the payment of your claim.
• Look over your policy. Determine what is covered and what is not and any deductibles there may be. Contact your insurance agent if you are uncertain about your coverage.
• Document your communication with the insurance company. Record the date, name, and role of each person you speak with and the content of the conversation.
• Get a second opinion. Get repair bids from other contractors and compare them with the insurance adjuster’s report before resolving your claim.
• Assert your right to the protection you paid for and be prepared to negotiate for a fair settlement of your claim.
• Be present during the claim adjusters’ visit so you can point out all of the damage.
• Document the damage. Photos and videos can strengthen your claim.
• Be patient. Every insurance company handles claims differently.

Should I Hire An Attorney?

If you have an underpaid homeowners insurance claim and you think your insurance policy covers your loss and your insurer doesn’t, or if you feel the damage you sustained is far more than what your insurance company compensates you for, or if your carrier neglected your claim altogether, then the Texas Insurance Code allows recovery of “actual damages, plus court costs and reasonable attorney’s fees” and if the insurer acted in bad faith you may pursue an award of up to “three times the number of actual damages.”

If you’re unsure of whether or not your situation warrants filing a claim against your homeowner’s insurance company, contact us. Free consultation. No recovery equals no fee.

Here’s How to Get Compensation

If your business was harmed by the COVID-19 shutdown, you may be wondering how to get compensated. Unfortunately, there is no one-size-fits-all answer to this question. Every business will have a different experience and will need to approach things differently. In this blog post, we will discuss some of the options that are available to business owners who have been impacted by the pandemic.

Check your Insurance Policy

First and foremost, it is important to check your insurance policy. Many business owners have paid their premiums for years, thinking that they are protected in the case of a pandemic or other disaster. However, insurers are now stalling or denying coverage to many businesses that need it. If you think you may be covered by your insurance policy, it is important to contact your insurer as soon as possible and find out what your options are.

Another option that may be available to you is government assistance. The Small Business Administration (SBA) has created a number of programs to help businesses that have been impacted by the pandemic. If you think you may be eligible for any of these programs, you can find out more information on the SBA website.

Finally, you may also be able to get compensation from your state or local government. Many states and municipalities have set up programs to help businesses that have been impacted by the shutdown. You can find out more information about these programs by contacting your state or local government.

Business Interruption Insurance

If you have business interruption or business income insurance, you may be covered for the COVID-19 shutdown. Even if your policy has an exclusion, coverage may still be possible. The insurance company must demonstrate that an exception is real and applies.

A qualified insurance claims attorney can help you determine if coverage is possible. They will review your policy and help you understand the coverage debate.

If you have business interruption insurance, don’t wait to file a claim. The sooner you file, the sooner you can get the compensation you deserve. Contact a qualified insurance claims attorney today. They will help you navigate the process and get the best possible outcome for your claim.

Consult with one of our experienced insurance claims attorneys

The first step is to take a look at your policy and see if you have business interruption insurance. This type of insurance is designed to protect businesses from lost income in the event that they are forced to close due to an unforeseen event. If you do have this type of coverage, there will likely be some restrictions and exclusions that apply. However, it is still worth looking into to see if you can make a claim.

The next step is to consult with an experienced insurance claims attorney. They will be able to review your policy and help you determine if you have a valid claim. If you do have a case, they can also assist you in filing the necessary paperwork and representing you in court, if necessary.

There is no guarantee that you will be successful in making a claim for business interruption compensation. However, it is worth exploring all of your options and seeking professional help to give yourself the best chance at getting the money you deserve.

Government COVID-19 Shutdown

Most business insurance policies have a civil authority exclusion that limits or excludes coverage for business income losses caused by an order from civil authority, like a state or local government. So if your policy has this exclusion and you’re forced to shut down due to a government-mandated stay-at-home order, you likely won’t be covered for any resulting business income losses.

However, some policies may have a civil authority coverage endorsement that can provide limited coverage for business income losses in these situations. Whether or not you’re covered will depend on the specifics of your policy, so it’s important to check with your insurance company or broker to see if you have this coverage.

If you don’t have a civil authority exclusion or coverage endorsement in your policy, you may still be covered for business income losses caused by the shutdown. That’s because most policies have a virus exclusion, which excludes coverage for any loss that is directly or indirectly caused by a virus. So if your policy has a virus exclusion and you’re forced to shut down due to a government-mandated stay-at-home order, you likely won’t be covered for any resulting business income losses.

However, some courts have ruled that the virus exclusion does not apply in these circumstances because the shutdown was ordered by the government, not by the presence of the virus itself. So if your policy has a virus exclusion and you’re forced to shut down due to a government-mandated stay-at-home order, you may be able to get coverage for your business income losses.

If your business has been impacted by the COVID-19 shutdown, you may be wondering if you can get compensation from your insurance company. The answer to that question depends on the specific details of your policy.

The bottom line is that whether or not you’re covered for business income losses caused by the COVID-19 shutdown will depend on the specifics of your policy. So if you’re forced to shut down your business, the first thing you should do is check with your insurance company or broker to see if you have coverage.

If you have any questions about your policy or coverage, please contact us and we’ll be happy to help.

Should I make a claim for compensation?

If you are wondering if it is a good idea to make a claim on your insurance policy for business losses due to the COVID-19 shutdown, the answer is yes. Your insurance company should not drop you for making a business loss claim. Your insurer’s risks do not increase because you filed a claim, as this was not caused by you the business owner.

Making a claim is the only way to get compensated for your losses, and it is important to remember that you are not alone in this situation. Many businesses are facing hardship due to the shutdown, and insurance companies are expecting a high volume of claims. The key is to be prepared and have all of the necessary documentation ready when you file your claim.

One way to find out if you have coverage is to contact one of our expert attorneys. We offer free consultations so that you can get the information you need to make a decision about your next steps.

Don’t try to navigate this process on your own. Let us help you get the compensation you deserve. Contact us today to learn more.

Our team of expert attorneys has extensive experience in handling insurance claims and can help you get the compensation you deserve.

While a fast settlement offer from an insurer might seem like a stroke of luck, you should keep in mind that the amount being offered may be well below what you are actually entitled to. Here are 3 reasons to think twice before accepting a fast settlement offer.

When your home or property has suffered damage, your insurance company should be there to help with repairs to get the situation remedied. Unfortunately, not all insurance companies see it that way. It’s in their best financial interest to avoid paying claims where possible even when the claims are legitimate. They will use tactics like denying, delaying, or undervaluing claims in the hopes that the policyholder will just be quiet and go away. This can include offering to cut a check right away for a quick, no-hassle settlement. Here are 3 reasons to think twice before accepting a fast settlement offer.

1. Adjusters Want The Best Outcome For Their Employer (not you) – Your insurance adjuster might seem like he’s looking out for you and maybe he/she is to a certain extent, but remember they work for your insurer and not you. They may misrepresent or intentionally misinterpret your policy to save their employer money.

2. You May Not Know The Full Extent Of The Damage – When property damage is suffered and you first file a claim you may not fully understand the extent of the damage. Things like hidden structural damage can be present without you realizing it and only later after you’ve accepted the settlement does it come to light. Situations like this can end up costing you much more than what the insurance company paid out.

3. First Offers Are Often Deliberately Low – The first settlement offer is by design a low one. The least amount they can give a policyholder to make them go away the better. If your adjuster gives you a fast settlement offer it could be a sign they know the claim is worth more.

Get A FREE Case Review

If you have recently had home or property damage and already accepted a settlement offer, but now realize it was significantly undervalued you may have a case. If your insurer acted in bad faith you may be entitled to compensation. Contact us today for a free case review.