Jury Hits Insurer with Heavy Penalty for Acting in Bad Faith to Policy Holder
Jury Hits Insurer with Heavy Penalty for Acting in Bad Faith to Policy Holder
The increased storm activity in Texas in recent years means more policyholders are filing claims than ever. Much of the economic damage is caused by hurricanes and other severe storms.
When Hurricane Harvey hit in 2017, one Houstonian’s truck was inundated with floodwater. By the time the water drained, the truck had suffered significant damage. Its owner filed a claim with American Access Casualty. After sending an inspector, the company offered him $6,000, far below the actual repair cost. The owner could not afford to repair the truck, and the resulting chronic dampness damaged it to the point that he had to replace it.
Texas Has Laws Designed to Keep Insurance Companies Honest
Under Texas law, insurers can be punished for unfair or deceptive practices, including failing to conduct a proper inspection, offering less than the policyholder is entitled to, not telling the truth, or otherwise misleading a policyholder about a policy provision or what the inspector found during an inspection. The law allows courts to punish insurance companies who do such things by requiring them to pay additional penalties and attorney’s fees beyond what is owed under the insurance policy.
Dominguez-Siller vs. American Access Casualty
The truck owner knew that the insurer had not treated him fairly. He hired a lawyer who filed suit for bad faith, alleging that the insurance company had failed to fulfill its duty of responding promptly and honestly to his legitimate claim. The case, Dominguez-Siller vs. American Access Casualty, went to a jury–and the jury awarded $600,000. That amount included the price of the new car, punishment for the insurer’s bad-faith tactics, and attorney’s fees.
The case has sent a warning to all Texas insurers not to try and take advantage of policyholders when they are at their most vulnerable, after their property has suffered storm damage.
Texas has already experienced severe weather in 2022, and more is predicted in the coming months. We’ve already seen Colin this year, and weather experts expect that Danielle, Earl, Fiona, and Gaston will develop as the season continues. Even a storm that doesn’t come ashore can bring severe wind and rain, leading to major damage.
Get Help From an Experienced Insurance Claims Attorney in Texas
If you’re having trouble getting your insurance company to handle your claim promptly, help is available. Contact the insurance-claim law firm Manfred Sternberg & Associates through our website or call us at 713-547-5460.
