At the Chad T. Wilson Law Firm, we fight for policyholders—and we win. In a pivotal case, we secured a significant victory against State Farm Lloyds, ensuring justice for our client, Alice Ladkin, an 85-year-old widow who simply wanted her rightful insurance benefits. The Second Court of Appeals of Texas ruled in favor of Ms. Ladkin, affirming that insurance companies must uphold their obligations to policyholders.

The Case Background

In July 2019, Ms. Ladkin filed a claim with State Farm Lloyds after a storm caused wind and hail damage to her home, leading to water leaks in her living-room ceiling. Instead of honoring the claim, State Farm disputed the extent of the damage, asserting that the cost of repairs fell below the deductible. Even after an independent appraisal confirmed that a full roof replacement was necessary, State Farm still refused to pay, citing preexisting conditions.

The Legal Battle

Our legal team presented compelling evidence that State Farm failed to conduct a thorough investigation and acted in bad faith by refusing a legitimate claim. The jury sided with Ms. Ladkin, issuing a strong verdict:

• $40,000 in actual damages for home repairs.

• $35,000 in treble damages under the Texas Deceptive Trade Practices Act (DTPA) for State Farm’s unfair treatment.

• Attorney’s fees to ensure Ms. Ladkin wasn’t burdened with legal costs for fighting a rightful claim.

The challenges facing homeowners in disaster-prone areas have grown exponentially, particularly in California. In 2023, three major home insurance companies in the state denied claims at rates significantly higher than the national average, according to a report from Weiss Ratings (source). This trend raises concerns about the state of home insurance amid a climate crisis that continues to increase the frequency and severity of natural disasters. Here are the insurance companies that denied the most claims.

The Numbers Behind the Insurance Denials

Weiss Ratings found that affiliates of Farmers Insurance, based in Los Angeles, denied approximately 50% of claims in California in 2023. USAA affiliates followed closely, declining 48% of claims, while Allstate Insurance, headquartered in Illinois, denied 46% of claims. These figures are starkly higher than the nationwide claim denial rate of 37% and represent a sharp increase from 25% two decades ago.

It’s important to note that these numbers reflect claims denied before California’s devastating wildfires in Los Angeles, which have destroyed more than 12,000 structures. The surge in climate-related disasters has sent insurance costs soaring and, in some cases, prompted insurers to drop coverage in high-risk areas altogether (sourc

For Karen and Tony Hoover, the last thing they expected after nearly 50 years of insuring their San Francisco Victorian home with Liberty Mutual Insurance was to face a sudden non-renewal of their policy. The cited reason? Aerial photographs allegedly showing “moss, mildew, algae, and mold” on their roof—photos that turned out to be misleading. The Hoovers’ determined fight to restore their coverage not only highlights the challenges many homeowners face today but also serves as a guide for others navigating similar situations.

The Hoovers’ Fight for Coverage

After receiving a non-renewal letter, the Hoovers were baffled. The aerial photograph, which seemed to be sourced from Google Earth, showed no visible evidence of the alleged damage. “All they do is show this picture of the whole roof—looking down. You can’t see one mark of discoloration,” Karen Hoover told reporters from 7NEWS (source).

Determined to clear their name, the couple hired Excelsior Roofing, a reputable local roofing company, to conduct a professional inspection. The results? The roof was in excellent condition, with no signs of mold, algae, or other issues. Armed with detailed photographs and a clean report, the Hoovers appealed the cancellation. While Liberty Mutual initially remained unresponsive, media involvement quickly led to their policy being reinstated.

Wildfire risk is on the rise across Colorado, and homeowners are feeling the strain—not only from the physical dangers of fires but also from the growing challenges in securing affordable and comprehensive insurance coverage. Experts warn that the state is teetering on the edge of an insurance crisis similar to what California is currently facing.

Why Colorado Is at Risk

Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association (RMIIA), explains that Colorado’s status as a high-catastrophe state, coupled with unprecedented natural disasters, has created a challenging environment for insurers. “We’re all seeing that play out in rising premiums and also a more limited marketplace for access to insurance,” Walker stated (source).

Over the last decade, insurance companies have experienced consistent financial losses in the state. As a result, homeowners in areas deemed high-risk are being dropped from their policies or facing skyrocketing premiums. For example:

• In Coal Creek Canyon, residents were abruptly dropped by their insurers in late 2024.

• In Castle Rock, HOA fees in the Latigo community doubled due to a 600% increase in insurance premiums.

• Homeowners in Arvada reported difficulty finding coverage, with one resident receiving only a single quote after contacting 20 insurance companies.

On August 5, 2024, Hurricane Debby made landfall in Florida, bringing 99 mph winds, a 6-foot storm surge, and dozens of tornadoes. The storm caused extensive flooding and wind damage, leaving thousands of homes and businesses demolished and tragically resulting in eight fatalities.

Why are claims being denied?

Citizens Property Insurance, Florida’s largest insurer with over 1.2 million policies, denied 77% of claims related to Hurricane Debby. According to Newsweek, Citizens spokesperson Michael Peltier explained:

“That area received minimal wind damage but significant flood/surge damage. Since surge and flood are excluded, most of the claims have been denied or closed with no payment” (Newsweek, 2024).

Flood damage, not covered under standard property insurance, forces many homeowners without flood insurance to rely on FEMA grants for financial support.

How does this impact Florida homeowners?

The effects of Hurricane Debby highlight ongoing challenges in Florida’s insurance market. While Citizens is designed as a “last-resort” insurer, its high denial rates leave many policyholders struggling with repair costs. U.S. Senator Sheldon Whitehouse has raised concerns about the company’s financial stability, warning:

“Citizens is potentially one catastrophic storm or storm season away from losses that exceed its immediate ability to pay by billions” (Newsweek, 2024).

Floridians face rising premiums, limited coverage options, and uncertainty about their insurance claims. The state’s insurance crisis underscores the importance of understanding policy limitations and exploring flood insurance as an additional safeguard.

Source: Newsweek, Florida’s Largest Insurer Denies Hurricane Debby Claims, 2024. Read the full article here.

We are proud to announce a major victory for our client, Cheu Lee, a first generation Hmong American who came to the U.S. as a Vietnam War refugee in 1976. Since then, he has worked tirelessly to build a better life, culminating in the ownership of a commercial building in his community—a building proudly adorned with a mural of his granddaughter, Olympic gold medalist Sunisa Lee.

Mr. Lee’s case involved State Farm’s failure to pay a windstorm claim, which left his building with extensive interior damage. State Farm failed to honor his claim, leaving his businesses—including a tax accounting office, the Hmong Pages newspaper, and his wife’s dance studio—at a standstill. This building represented more than just a place of business. It was the culmination of a lifetime of hard work and a symbol of pride for both Cheu and the Hmong community.

Cheu’s dedication during this case was extraordinary. Attorney Hunter Odom recalls, “You could tell this was more than just a court case to Mr. Lee.  He was early to arrive at the courthouse every morning, despite serious personal obligations that would have prevented most from attending, and he never once complained.” Mr. Lee’s perseverance certainly paid off! With this compensation, Mr. Lee can now repair his building and continue the work he’s spent his life building.