Bad Faith Insurance Practices in Round Rock
Insure companies have a duty to investigate damage claims and to treat the policyholder's claims in good faith. If your claim is wrongfully denied, our lawyers can evaluate your claim and determine if your insurance company acted in good faith, or if you have more compensation due to you. When working with you to settle a claim, your insurance company owes a special duty to you to act in good faith. This is a contractual duty that was created when your premium was paid and the policy issued. If your insurance company knowingly or intentionally violates that special duty to you by denying your claim, they may have acted in bad faith. If you believe that your insurance company has acted in bad faith, you can bring a lawsuit for breach of contract claim and/or for violating the Texas Insurance Code.
What is Bad Faith?
Your insurance company has a duty under Texas law to handle your claim promptly, with reasonableness, and in good faith. If they fail or refuse to honor your policy and pay a valid claim, you may have the right to bring a legal action for damages and attorney’s fees for that violation. Quite often, insurance companies attempt to delay or deny the benefits you are entitled to under your policy. Texas law requires insurance companies to act in good faith and deal fairly with their policyholders. If they delay or deny payment for damages, particularly when the evidence is clearly in your favor, they may have violated their duty to act in good faith and with fair dealing. Under Texas law, insurance companies are required to do the following when handling your claim:
- Promptly investigate the claim
- Promptly pay any undisputed portion of the claim
- Communicate with the policyholder regarding the status of the claim
- Provide a reasonable explanation any time a claim is denied
If an insurance company fails or refuses to do comply with any of the above, they have acted in bad faith and may have breached the contract or insurance policy. Breach of contract may include:
- Misrepresentation of policy coverage
- Misrepresentation of a material fact
- Failure to disclose a material fact
- Failure to promptly settle claims
- Unfair or deceptive trade practices
- Making of false statements
Zinda Law Group Can Help
Have you faithfully paid your insurance premiums only to have your insurance company wrongfully deny your claim? Now what are you supposed to do? How will you pay for the repairs? Or for your medical bills? Where do you turn for help? This is when the experienced attorneys at Zinda Law Group can help you. If your insurance company has acted in bad faith, we can file a lawsuit for breach of contract and bad faith dealing and recover your damages including the payment of attorney’s fees. Call us today at (800) 863-5312 and let us help you.