Texas Hailstorm Insurance Litigation Reform

Insurance lobbyists are trying harder than ever to convince Texas lawmakers to enact needless hailstorm litigation reform.

In 2015, the Texas legislature nearly passed a bill that would have incentivized insurance companies to underpay claims. In February of this year, Gov. Abbott called hailstorm litigation a crisis that needed to be reined in. Now, insurance companies are hard at work informing lawmakers of the injustices of attorneys fighting for their clients.

State Farm Lobbies to Dismantle Policyholder Rights

In State Farm’s most recent papering of Texas congressmen’s and congresswomen’s offices, the insurance giant asserted that policyholders should accept whatever decision the company came to regarding claims, and not sue. “The Texas Legislature should move quickly to encourage the quick and fair settlement of insurance claims  following severe weather events while protecting the interests of Texas policyholders and discouraging the filing of frivolous insurance lawsuits.”

We’re all for the quick and fair settlement of claims, but we think State Farm’s definition is quite skewed. The 2015 proposed bill tried to undo 40 years of protections that ensure insurance companies are fair. In the proposed changes, policyholders would barely have time to file claims after an storm. Insurance companies would be encouraged to deny claims. And fraud and negligence would go unchecked and unpunished.

To us, the best way to protect the interests of policyholders is to pay them the insurance money they deserve in the first place. But, companies like State Farm are slanting the narrative in their favor.

They’ve convinced the governor of Texas that policyholders suing for their rights is “the newest form of lawsuit abuse.” Abbott said in his January state of the state address that he would like to see on his desk legislation “that limits abusive hailstorm litigation.” With proposed policies that would allow insurers to abuse the system, the irony isn’t lost on us.

Proponents of the law suggested policy changes chalk the justification up to decrying a small number of “storm-chasing” attorneys that prey on victimized policyholders. Consumer advocates, however, point out that the changes paint with too broad a brush and would prevent policyholders from holding insurance companies accountable for errors and perceived wrongdoing in the claims handling process.

The Truth About Hailstorm Litigation Reform

At a Dec. 1, 2016 House of Representatives insurance committee hearing, a representative of the Office of Public Insurance Counsel (OPIC), Joe Matetich, told lawmakers that a “statewide hail litigation crisis does not currently exist in Texas,” and that there “does not appear to be an insurance market problem” in Texas. Matetich gathered his information from research that lawmakers requested the Texas Department of Insurance conduct.

Nationwide Denies Harris County Couple Insurance After Storm

A Houston couple recently sued Nationwide after the insurance company conducted an improper inspection of our clients’ storm-damaged property. They grossly undervalued the cost of repairs and deliberately yielded an unrealistic amount to underpay coverage.

March 23, 2016 Storm

On March 23, 2016, a wind and hailstorm blew through Harris County, tearing through neighborhoods as it went. Our clients’ Houston home sustained extensive damage to the roof, exterior and interior. After the storm, they promptly submitted a claim to Nationwide, hoping the insurance company would help them repair their home.

Nationwide Lloyds Insurance Company Home Insurance Claim

Nationwide assigned one of its adjusters to inspect the property and adjust the claim. The adjuster knowingly conducted a subpar investigation, refusing full coverage. This left our clients without recovery necessary to make repairs to their home.

The third-party expert hired after the insurance company’s negligent inspection found a litany of damages that Nationwide’s adjuster conveniently left out or undervalued in his estimate.

The third party adjuster estimated the real damage to our clients’ home at $21,300.

Nationwide’s adjuster intentionally undervalued our clients’ claims in order to maintain his job. He misrepresented the amount of damage, hoping our clients would simply rely on his expertise and fraudulent estimate as a true representation of the property’s damages.

Nationwide’s fraud forced our clients to retain an attorney, just so they could get their roof repaired. On February 14, 2017, the Chad T. Wilson Law Firm filed suit, on behalf of our clients, against Nationwide Lloyds. The firm is suing for fraud, breach of contract and violations of the Texas Insurance Code and the Texas DTPA.

Houston 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 we win your case. Contact us today to see how we can help.

Harris-County-Homeowners-Fight-Back-Against-Allstate

Our clients, homeowners whose home was damaged when a severe storm passed through Houston, Texas, were forced to file a lawsuit against Allstate Vehicle and Property Insurance Company and its adjuster after they conducted a substandard and improper inspection of the couples property, grossly undervaluing the cost of repairs and deliberately yielding an unrealistic amount to underpay coverage.

January 9, 2016 Storm

On January 9, 2016, a severe wind- and hailstorm bombarded Harris County, Texas, tearing through neighborhoods and destroying homes as it went. Their home suffered severe damage to the roof and exterior, as well as some rooms of the interior. After the storm, the homeowners quickly submitted a claim to Allstate, hoping their insurance company would help them get their life back in order.

Allstate Vehicle and Property Insurance Company Home Insurance Claim

Allstate assigned one of its adjusters to inspect the property and adjust the claim. The adjuster knowingly conducted a subpar investigation, refusing full coverage and estimating damages to total about $1,700, which, after the deductible, left our clients with no recovery to make repairs to their home.

The third-party expert hired after the insurance company’s fraudulent inspection found a litany of damages that were either conveniently absent or undervalued in Allstate’s estimate.

The damage to our client’s property is currently estimated at nearly $37,000.

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

Because of Allstate Vehicle and Property Insurance Company’s fraud, our clients were unable to complete any meaningful repairs to their home, which resulted in even more damage. They were forced to retain an attorney to pursue their claim for insurance benefits. On November 17, 2016, the Chad T. Wilson Law Firm filed suit, on behalf of our client, against Allstate Vehicle and Property Insurance Company 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.

Chad T. Wilson Law Firm Outplays State Farm

For years, insurance companies like State Farm have taken advantage of policyholders through the misuse of Texas insurance law. The Chad T. Wilson Law Firm is fighting to stop this abuse.

Attorney Stephen Mengis leads the firm’s charge in protecting its clients against State Farm’s misguided practice. “State Farm uses appraisal as a ‘Get Out of Jail Free’ card,” Mengis explained. “They use appraisal to get away with paying policyholders as little as possible, sometimes years after the fact.”

What is appraisal?

When a homeowner makes a claim on their insurance policy, their insurance will send out an adjuster to inspect the home and claim. Too often, the adjuster will seriously low-ball estimates to assert that the insurer owes nothing under the policy.

Many savvy policyholders will hire a third-party, unbiased inspector to assess damages and see if the insurance company left anything out. Based on the inspector’s estimate, the homeowner can sue the insurance company.

During the lawsuit, either side can invoke appraisal. Each side will hire an adjuster who will give them the best damages amount — the insurance company will want another low estimate, and the policyholder’s attorneys will want a high estimate.

After each side inspects the property and determines the amount of damage, the two adjusters will meet to find a compromise. If they can’t agree, they’ll bring in another adjuster (umpire, if you will) who will pick a side. Whatever amount the third adjuster chooses is what the insurance company pays.

Texas Insurance Law

If an insurance company doesn’t pay a claim within 60 days, Texas law mandates they pay any attorney’s fees accrued during a lawsuit, along with an 18 percent interest rate on the amount of the damages. “In one case,” Mengis shared, “we got an appraisal award exactly one year after the damages occurred. That’s well outside of the 60 days.”

State Farm invokes appraisal on every case, then uses a 2004 case to justify only paying the appraisal amount. “With State Farm’s logic, they can deny any claim they want for any reason,” Mengis said. “For the small percentage of denied claims that file lawsuits, they can invoke appraisal, pay the appraisal award (sometimes more than two years after the damages occur) and say they don’t owe anything else under Texas law.”

What’s worse, according to Mengis, is that appraisal only sets the amount of the loss. It doesn’t account for the expenses and fees that go along with appraisal and the lawsuit, including attorney’s fees. “That’s the advantage of appraisal and why they use it.”

Mengis provided the example of a $10,000 appraisal award to replace a roof. After accounting for a $2,500 deductible, the policyholder is left with $7,500. The insurance company will then deduct a fee for the depreciation of the roof. If the roof is seven years old and was supposed to last 25 years, they’ll deduct 33 percent of the value of the roof. Now, the award is at $4,500. After fees for lawyers, appraisers, inspection and filing the lawsuit, the policyholder may actually owe money.

And State Farm still claims they awarded enough money to fix the roof. (And, if the homeowner doesn’t make the repairs, State Farm can cancel the policy.)

Houston Law Firm Combats Misuse of Appraisal

Mengis has taken to using State Farm’s logic against them. “Since the insurance company claims appraisal makes the lawsuit go away, we do, too,” he said.

The firm files a motion for Summary Judgement, asking the court to rule that the insurance company broke the law. “The appraisal award is evidence that they didn’t pay what they owed the policyholder within the 60-day time limit the law sets,” Mengis explained.

In this new set of circumstances, both sides have a valid argument for why they should win, making it harder for either to win. “That’s enough to keep the case alive after appraisal, so we can keep fighting for our clients.”

IF your claim has been denied, call us for a FREE consultation!

Insurance Lobbyists Threaten Homeowner Rights … Again

You may not realize it, but during the 2015 Texas legislative session, you almost lost every right your property insurance policy gives you.

SB 1628

Last year, Larry Taylor, a state senator and insurance agent from Galveston, proposed SB 1628. Industry insiders wrote this bill to undo 40 years of protections that ensure insurance companies are fair. Backed by an army of highly paid insurance lobbyists, the bill would have ripped through the laws that currently keep insurance companies honest.

Meaning you would barely have time to file a claim after a storm. Insurance companies would have incentives – yes, incentives – to deny or underpay your claim. And, even the adjuster who came out and lied through his teeth about your hail damage being “wear and tear” would have gotten off scott-free.

Phew. You breathe a sigh of relief knowing that liberty and justice prevailed last year, and your rights are still protected.

At least for now.

Insurance Lobbyists Fight to Take Rights

On October 5th, the insurance lobbyists will return. The industry will work itself to the bone to guarantee it can deny, delay and underpay your claims with zero accountability.

You pay a premium so that you can rest easy knowing that you won’t lose everything you have during the next severe storm. Even so, it’s in your insurer’s best interest to deny or underpay your claim by whatever means necessary – fraud, negligence or simply utter incompetence. That’s why the current strict laws with harsh penalties are essential to protect your rights as a policyholder.

This session, those rights will, once again, be in jeopardy. Legislative committees will meet with industry insiders to decide your and your family’s fate. While no bill has been proposed, these legislators will discuss weather-related litigation, educated only by the propaganda the insurance lobbyists will spew.

Take Action

So, how do you make sure your rights are protected?

1. Call or email your state senator to voice your concerns and give your testimony to be included in the meeting records.
2. Find a special interest group that will represent you through formal letters, petitions and testimony.
3. Get a great lawyer. The experienced attorneys at Chad T. Wilson Law Firm fight for our clients’ rights every single day. We’ve represented more than 1,000 homeowners to get them the insurance payments they rightfully deserve.

Houston Man Sued Allstate

Our Client Sued Allstate

Our client, a man whose home was damaged by a severe storm in Houston, Texas, sued Allstate Vehicle and Property Insurance Company and its adjuster after they conducted a substandard and improper inspection of our client’s property, grossly undervaluing the cost of repairs and deliberately yielding an unrealistic amount to underpay for coverage.

January 8, 2016 Storm

On January 8, 2016, a severe wind- and hailstorm bombarded Harris County, Texas, tearing through neighborhoods and destroying homes as it went. Our client celebrated the New Year picking up the pieces of his broken home. His home suffered severe damage to the roof and exterior, as well as some rooms of the interior. After the storm, the man quickly submitted a claim to Allstate, hoping his insurance company would help him get his life back in order.

Allstate Vehicle and Property Insurance Company Home Insurance Claim

Allstate assigned one of its adjusters to inspect the property and adjust the claim. The adjuster knowingly conducted a subpar investigation, refusing full coverage and estimating damages to total about $2,300, which, after the deductible, left our client without the necessary recovery to make repairs to his home.

The third-party expert hired after the insurance company’s fraudulent inspection found a litany of damages that were either conveniently absent or undervalued in Allstate’s estimate.

The damage to our client’s property is currently estimated at $28,200.

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

Because of Allstate Vehicle and Property Insurance Company’s fraud, our client was unable to complete any meaningful repairs to his home, which resulted in even more damage. He was forced to retain an attorney to pursue his claim for insurance benefits. On September 22, 2016, the Chad T. Wilson Law Firm filed suit, on behalf of our client, against Allstate Vehicle and Property Insurance Company for fraud, breach of contract, and violations of the Texas Insurance Code and the Texas DTPA. We sued Allstate and we WON!

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.

Texas Farm Bureau Leaves Policyholder High and Dry

In early May 2016, severe thunder, wind, and hailstorms ripped across Willis, Texas, their malevolent currents crashing through the small town.

Our client, a man in Montgomery County, Texas, found his home a victim of the storm’s violence.

After the hailstorm, he immediately filed a claim with his homeowner’s insurance company, Texas Farm Bureau, asking them to pay for the damages so that he could make repairs and start getting his life back in order.

Texas Farm Bureau hired an adjuster to inspect our client’s home and assess the damage. The inspector found that there were nominal damages to the property — namely the fence, a gas grill cover, and a wooden playset — therefore denying his claim and leaving him with no recovery to make repairs to his home.

So, our client hired a third-party expert, who conducted an unbiased inspection and found a litany of damages that Texas Farm Bureau’s adjuster had left off, resulting in more than $24,500 worth of damages to the home. Seeing that he was owed much more than the $416 of damages Texas Farm Bureau suggested, the client promptly sought out the Chad T. Wilson Law Firm to help him obtain the recovery he had, essentially, already paid for through the purchase of his insurance policy.

On Tuesday, August 2, 2016, the Chad T. Wilson Law Firm filed suit against Texas Farm Bureau Casualty Insurance Company in Montgomery County, Texas for fraud, breach of contract, violations of the Texas Insurance Code and Texas DTPA, and wrongfully denying our client coverage under his policy.

Through its adjuster, Texas Farm Bureau conducted a substandard and improper inspection of the client’s home, which grossly undervalued the cost of repairs in its estimate and yielded an unrealistic amount to underpay coverage. Texas Farm Bureau unreasonably adjusted our client’s claim, misrepresenting the cause of, scope of, and cost to repair damages to his property.

Because of Texas Farm Bureau’s misrepresentations, our client was forced to hire an attorney to file a lawsuit for insurance benefits.

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.