The Texas Supreme Court recently answered the question above in two cases with different results depending on what type of insurance code violations the insured is alleging. The court addressed Texas Insurance Code chapter 542 violations (often called prompt payment of claims) in Barbara Technologies Corporation v. State Farm Lloyds.1… Continue Reading
Rene Sigman of Merlin Law Group’s Houston office was getting some pretty good results for clients this week when she sent me a Texas Supreme Court appraisal case which makes delaying insurers more accountable for inaccurate or plain wrongful estimates of the benefits owed to policyholders. All this Texas good news had me thinking “Yippee-Yi-Yo-Ki-Yay!”… Continue Reading
The Problem: Waiving insurance policy deductibles (“you scratch my back and I’ll scratch yours”) has been common place in Texas since 1989 and came about as the result of a poorly worded statute passed that same year that contractors have basically ignored. Contractors who have broken the 1989 law by waving deductibles (primarily roofing contractors) … Continue Reading
If your home was burglarized, would you sit back and do nothing? No. You would likely call the police or law enforcement to report the burglary, and hope they find your stolen property. If the police arrested the person who stole your property, would you let that person off without punishment, accountability, and repayment for … Continue Reading
Texas policyholders have been through somewhat of a drought lately when it comes to favorable opinions regarding the disposition of motions to sever and abate filed by Defendant insurers. A break in this dry spell, however, arrived with the recent decision of Donald v. Metropolitan Lloyds Insurance Company of Texas.1… Continue Reading
Texas Insurance Code Section 542A.006, effective December 1, 2017, allows insurers to accept liability for the acts of their adjusters either before suit is filed or after suit is filed. If the election of liability is made before suit is filed, the in-state defendant adjuster never becomes a party if suit is filed eventually. If … Continue Reading
Houston was under water during Hurricane Harvey. Many people whose properties were not flooded from the Hurricane itself, and had never previously flooded, found themselves waist deep in flood water – their homes, businesses, and personal property forever ruined.… Continue Reading
In the case Biasatti v. GuideOne National Ins. Co., No. 07-17-00044-CV (Tex. Ct.App. Aug. 16, 2018), Steven Biasatti and Paul Gross, d/b/a TopDog Properties, brought suit against its insurance company, GuideOne National Insurance Company for breach of contract.… Continue Reading
Hurricane Harvey victims along the Gulf Coast continue to fight for proper claims treatment from Texas Windstorm Insurance Association—better known as TWIA. On August 27, 2018, KPRC Channel 2 News Houston profiled the ongoing problems property owners are facing with their TWIA claims. KPRC Channel 2 News Houston interviewed me as part of its ongoing … Continue Reading
Having undertaken to write about “all things Menchaca,” this month is a review of five cases post-Menchaca which contradict one another in deciding whether the independent injury rule is dead or alive. Looking at the first set of cases post-Menchaca, it appears that the answer to that question is a long way off.… Continue Reading
May 11, 2018, is a day that shall live in infamy for insurance law plaintiff attorneys. On that day, the Fifth Circuit declared the independent injury rule as dead in Aldous, PC v. Darwin National Assurance Company,1 citing the substituted April 13, 2018, Menchaca II opinion.2… Continue Reading
TWIA (short for Texas Windstorm Insurance Association), frequently referred to as the Texas windstorm insurance carrier of last resort, just can’t seem to get this insurance claims handling thing right. A conclusion quite alarming considering that insurance claims handling is one of the primary functions of its business. At this point many are left wondering … Continue Reading
I often hear from insureds that have been negotiating with their insurance company for a period of time when the insurer suddenly demands appraisal. The insureds do not want to go to appraisal and the first question is always, “Can the insurance company do that?” followed by “This claim has been going on for months, … Continue Reading
The majority of insurance policyholders do not realize that their property insurance policy may contain an appraisal provision. Insurance companies attempt to use appraisal provisions to impose unnecessary burdens on insureds and to eliminate the insureds potential to file a lawsuit against the insurance company and its adjusters for violations of the Texas Insurance Code, … Continue Reading
On Friday, April 13, 2018, by avoiding black cats, ladders, and breaking mirrors, seven members of the Texas Supreme Court1 managed to issue a new, sixty-six page opinion in USAA Texas Lloyds Company v. Menchaca (“Menchaca II”).2 Withdrawing its April 7, 2017, opinion3 —”Menchaca I”—the court unanimously reaffirmed the five legal principles and rules announced … Continue Reading
With Harvey still in our rear-view mirror, many Houstonians and coastal Texans are fearing what the 2018 Hurricane and storm season will bring. Many policyholders are still fighting their insurance carriers to recover on their Hurricane Harvey claims. With numerous claims being denied or underpaid—several policyholders have not moved back into their homes due to … Continue Reading
Hurricane Harvey flooding affected Texas property owners (i) with sufficient flood insurance to cover the loss, (ii) with insufficient flood insurance to cover the loss, and (iii) without flood insurance. This three-part series discusses the differences in property ownership rights and two separate avenues to recovery.… Continue Reading
On April 7, 2017, the Texas Supreme Court in USAA Tex. Lloyds Co. v. Menchaca,1 answered several issues that had continually swirled around litigation arising out of Hurricane Ike policy disputes. Unresolved issues included among others: Whether an insured is required to obtain a breach of contract finding as a prerequisite to a recovery for … Continue Reading
While Texas continues to recover from the devastation of Hurricane Harvey, hail season is quickly approaching. While it is true that hail can develop any time of year, spring is traditionally when large hail events have hit Texas.… Continue Reading
In what sounds like a simple and obvious statement, an adjuster sent by the insurance company to perform an inspection and write an estimate of damages can be liable for violating the Texas Insurance Code. The Western District of Texas recently held that while an adjuster cannot be held liable as an insurer under the … Continue Reading
“TFPA’s mission is to efficiently provide essential residential property insurance products and services for eligible Texas policyholders when no one else will.” Purpose and Operation The Texas Fair Plan Association (TFPA) was created by the Texas Legislature to address growing concerns of obtaining residential property insurance coverage in underserved areas. TFPA was implemented in 2002 … Continue Reading
In theory, the appraisal process is intended to provide an efficient means of determining the cost to repair or replace damaged property. It is also intended to have a degree of finality – once the appraisal panel determines the amount of damages, the damages are typically fixed at that amount.… Continue Reading
The deadline to apply for Hurricane Harvey FEMA/SBA disaster assistance is quickly approaching. The application filing deadline for physical damage as a result of Hurricane Harvey has been extended 30 days and is now November 24, 2017. FEMA can provide up to $33,000 in assistance to qualified applicants. Those homeowners and business owners who require … Continue Reading
