Hailstorm Damage Puts Faith in Question

The 2016 storm season was the most expensive storm season on record for Texas. On March 17th, 2016 Arlington, Texas experienced no less than six recorded hailstorms, the largest of which generated hail two-and-a-half inches in diameter. The hazardous weather system began Thursday morning, dropping huge pieces of hail and grounding flights out of DFW Airport. This was a monster storm that damaged many homes in the area, our client being one of those homeowners.

The roof damage was so severe that our client submitted a homeowners insurance claim through his insurance provider, State Farm. After filing the roof damage claim, the insurer sent out their adjuster who inspected the property damage and determined there was none or below our client’s deductible. Blindsided by his insurer’s stance, our client hired us and invoked appraisal for their case. The appraisal award came back at 80,000 times the amount of damages originally assessed by State Farm.

State Farm paid most of the award. To collect the remainder of the award and interest and attorney fees, our client pursued his insurer by filing suit, declaring his insurance company had acted in breach of contract and violation of Chapter 541 of the Texas Insurance Code, the Texas Deceptive Trade Practices Act (DTPC), and the Texas Prompt Payment of Claims Act (TPPCA). To guard their profits, insurers every so often commits deceitful practices, deliberately distort their policy language to avoid paying a claim, use absurd delays to avoid resolution of a claim, or make frivolous demands about proof of loss. This is called a bad faith insurance practice.

Our client’s insurer responded with a motion for partial summary judgment on all our client’s claims as a means of staving off breach of contract and TPPCA pursuits based on the Texas Supreme Court decision in Ortiz. State Farm argued that they had paid the award and therefore there was no breach of contract or extra-contractual claims left to pursue.

Is It Bad Faith, Bad Luck, or Both?

For the statutory bad faith claim to stick, our client had to show a breach of contract by his insurer. The insurer contends that a breach of contract is a prerequisite to statutory bad faith, yet policyholders argue a breach of contract is only a prerequisite to bad faith when the claim is not covered.

Generally, there can be no claim for bad faith when an insurer has promptly denied a claim that is not covered. However, failure to show a breach of contract does not alleviate a policyholder’s bad faith claims. What this means is the insured must show coverage, not a breach of contract. It is undisputed that our client’s claim under the policy was covered. The insurer did find damage, below the deductible when the claim was initially adjusted.

The only fair and rational analysis of the law that does not offend common sense or public policy is one that preserves an insurer’s responsibility to deal with an insured in good faith when the insured’s claim is covered. Our client’s insurance providers manipulation of the law would allow them to ignore their responsibility and systematically delay, deny, or underpay insurance claims until the insured hires an attorney and sends a pre-suit notice letter suing for breach of contract and bad faith, then to simply invoke appraisal, pay the award, and weaken the insurer’s contractual liability but also its statutory liability for bad faith acts and the adjustment process.

At the hearing, our attorneys argued the above and pointed out that an appraisal award that is 80,000 times higher than the amount first assessed by State Farm, and the unilateral (line-item veto) of certain damages in the award, amounted to breach of contract and bad faith. The court agreed and denied State Farm’s summary judgment on all grounds.

Texas Property Insurance Lawyers

Has your homeowner’s or commercial business insurance claim been denied? We can help. Representing thousands of clients against big insurance companies, our insurance claims attorneys aggressively protect the rights of the policyholder. Our consultations are free, and you owe us nothing until we win your case. Contact us today.

North Dallas Sees Softball-sized Hail

Softball-sized Hail Hits North Dallas

Nestled on the south side of the western edge of Lewisville Lake rests the City of Highland Village. This suburb of north Dallas is known for its annual hot air balloon festival and its summertime firework shows. The region is also known for its history of wind damage and hailstorms.

Softball-sized Hail Thrashes Denton County Costing Millions

On Sunday night, March 26, 2017, a powerful hailstorm (fueled by an abnormal amount of moisture from the Gulf of Mexico) blew through wreaking havoc as it passed through. Softball-sized Hail measured up to four and a half inches across was witnessed by residents. For comparison, a softball is four and a quarter inches across. Thousands of property owners reported severe roof damage, along with busted-out skylights and windows. The majority of the property damage occurred in fifteen minutes after 8 p.m. that night. The hailstorm was reported to be so bad, one Fire Chief’s windshield was destroyed and he had to leave his vehicle and take shelter in an abandoned building for protection.

Our client’s newly constructed, multi-use commercial complex (or town center), which consisted of shops, stores, a leasing office, and apartments experienced the full force of the hailstorm. A total of eleven roofs (4 TPO, 3 modified bitumen, 2 three-tab shingle, and 2 laminated composition shingle), and all the roof-mounted HVAC equipment and accessories were damaged beyond repair or destroyed. The fact that these new roofs had to be replaced is a testament to the property damage that occurred.

Quadrupling The Award Is The Reward

AmGuard Insurance responded to our client’s insurance claim by sending out their adjustors who substantially undervalued the damage. Knowing AmGuard’s inspection results did not represent reality, our client hired us to represent them against their insurance carrier.  After our representation concluded, our client had ample funds to replace all eleven damaged roofs and acquire new HVAC equipment for the complex as well as reimburse litigation expenses and pay the firm’s fee.

Texas Property Insurance Lawyers

Has your homeowner’s or commercial business insurance claim been denied? We can help. Representing thousands of client’s against big insurance companies, our insurance claims attorneys aggressively protect the rights of the policyholder. Our consultations are free, and you owe us nothing until we win your case. Contact us today.

Wind and Hailstorm Damage in Houston

Our client’s office building was severely damaged in the wind and hailstorm that occurred in Houston on January 8th, 2016. The lawsuit against the Hanover Insurance Group was unavoidable due to their practices and the handling of our client’s insurance claim. Without anywhere else to turn, our client chose to hire us to make sure Hanover Insurance honored their commitment and paid for roof and damaged air conditioning units.

Huge Hail Causes Havoc in Houston

The wind and hailstorm dropped golfball-sized hail in Houston and the surrounding areas. The local news stations were inundated with images of people holding huge balls of hail. Our client’s property was a large commercial office building built in 1974, which featured five individual modified bitumen-style roofs. All of the facility’s air conditioning units were destroyed by the hailstorm. The roof-mounted units did not stand a chance against the sheer destructive force of the storm. Some exterior damage to the roof itself also occurred.

The Wind and Hailstorm Claim

Hanover Insurance outright denied our client’s insurance claim, stating after sending four of their adjusters, that no damage had occurred. Seeing that negotiating with their insurance company was a dead end, our client chose to sue Hanover Insurance. Our third-party adjusters evaluated the damage to the office building and determined the real property damage was far greater than nothing.

After mediation, our client was able to secure the finances to repair the roof damage and have all of the damaged air conditioning units replaced. Our client’s business would resume operations and their lives could get back to normal.

Houston Property Insurance Lawyers

We can help with your commercial property insurance claim denial. Our experienced property insurance attorneys have represented more than 1,000 clients in cases against insurance companies and aggressively protect the rights of insurance policyholders. Consultations are free. Contact us today.

Our client, a liquor store in Colorado, was recently forced to file a lawsuit against Auto-Owners Insurance Company and its adjusters. The store suffered extensive damages when a severe storm passed through Highlands Ranch, Colorado in September 2014. After the hail had passed, our client found themselves in a storm of Auto-Owner’s fraud and deceit.

September 29, 2014 Storm

On September 29, 2014, a severe wind and hailstorm bombarded Douglas County, Colorado, tearing through neighborhoods and destroying homes and businesses as it went. Our client became one of the storm’s many victims when the torrential hail damaged the property. After the storm, the store submitted a claim to Auto-Owners, hoping it would help it get back in business.

Auto-Owners Insurance Company Property Insurance Claim

Auto-Owners hired Monaco Adjusters, which then assigned an agent to adjust the claim. The adjusters estimated the damages to be around $31,000.

But, after applying depreciation and the policy deductible, the store received $13,300. Damages to the liquor store are currently estimated at more than $577,000. They received less than 3 percent of what they were owed based on their policy.

Due to Auto-Owners’s breach of contract, our client was unable to complete any meaningful repairs to the building. They were forced to retain an attorney to pursue their claim for insurance benefits. On September 29, 2016, the Chad T. Wilson Law Firm filed suit, on behalf of our client, against Auto-Owners Insurance Company for breach of contract, bad faith breach of insurance contract, and statuary bad faith.

Colorado Property Insurance Lawyers

If your homeowner insurance carrier has denied your insurance claim, we can help. The experienced property insurance attorneys at Chad T. Wilson Law Firm have represented more than 1,000 clients in cases against insurance companies and aggressively protect the rights of insurance policyholders. Our consultations are free, and you owe us nothing until your case is won. Contact us today to see how we can help.

Liberty and Injustice For All

Our clients, a couple whose home was damaged during a severe storm, were forced to file a lawsuit against Liberty Insurance Corporation and its agent after they conducted a substandard and improper inspection of the clients’ property, grossly undervaluing the cost of repairs and deliberately yielding an unrealistic amount to underpay coverage.

March 16, 2016 Hailstorm

On March 16, 2016, a severe hail- and windstorm swept across Harris County, Texas, destroying homes and lives as it went. Our clients were no exception. Their home suffered significant damage, including damage to the entire roof, master bedroom, bathroom, living room, kitchen, and foyer, among other damages. After the storm, the couple hastily submitted a claim to Liberty, hoping to get their lives back in order quickly.

Liberty Insurance Company Home Insurance Claim

Liberty assigned one of its agents to inspect the property and adjust the claim. The agent knowingly conducted a subpar investigation, employing the “pay and pray” approach — an insurance company favorite. With this type of inspection, an agent will deny any and all damage the storm caused to the roof, while covering the less expensive interior damage. The damages the agent found totaled only $500, leaving our clients without the recovery needed to mend their home.

The third-party expert hired after the insurance company’s negligent inspection found a plethora of damages that were conveniently absent from the previous inspection, totaling more than $30,000.

Liberty’s agent intentionally undervalued our clients claims in order to maintain her job, misrepresenting the amount of damage in the hopes that our clients would simply rely on her expertise and fraudulent estimate as a true representation of the property’s damages.

Because of Liberty Insurance Corporation’s gross negligence and fraud, our clients were forced to retain an attorney to prosecute their claim for insurance benefits. On August 3, 2016, the Chad T. Wilson Law Firm filed suit, on behalf of this couple, against Liberty Insurance Corporation for fraud, breach of contract negligence, gross negligence, negligent hiring, and violations of the Texas Insurance Code and the Texas DTPA.

Texas Property Insurance Lawyers

If your homeowner insurance carrier has denied your insurance claim, we can help. The experienced property insurance attorneys at Chad T. Wilson Law Firm have represented more than 1,000 clients in cases against insurance companies and aggressively protect the rights of insurance policyholders. Our consultations are free, and you owe us nothing until your case is won. Contact us today to see how we can help.