Texas Underpaid Insurance Claim Lawyers
Why Your Claim Underpaid? Our Law Firm Can Help!
No matter how damaging the destruction to your home or business may have been, the insurance adjuster who handles your claim may choose to overlook the severity of the situation at hand. Focused solely on retaining money and reaping profits, insurance adjusters working for companies across the nation have taken up practices of bad faith that allow them to deny or underpay policyholders in need.
Questionable methods such as those that report miscalculations are usually instances of insurance bad faith.
After submitting a claim, you can expect to receive a document in return. This document, prepared by an insurance adjuster who works for the company, will reflect an estimated sum of the total cost of repairs to your property. The estimate returned to you, however, may not truly represent the amount of money needed to amend the damages that you and your home/business suffered. In fact, very often, the estimated number is no more than a manipulated amount that allows your insurance company to escape paying you the full terms of your coverage.
How It Works
Many insurance companies utilize specially designed software that enables them to generate an estimate for the cost of your repairs quickly. Typically, these estimates include the actual cash value (ACV) of your damages, the replacement cost value (RCV), and the depreciation of such costs. Insurance adjusters that are looking to reduce the costs incurred by their company may be apt to engage in unethical practices that skew the numbers reported to you. Questionable practices among insurance companies across the nation have caused attorneys to take notice.
Many of these insurance companies have taken to improperly applying the depreciative value of a repair to reduce the costs for which they would otherwise be responsible. Other methods enforced by some insurance adjusters include "accidentally" failing to cover certain expenses connected to the end estimate and refusing to make any payments to an insured individual until that individual has paid the company.
One of the biggest insurance claim issues among adjusters right now is the tendency to underpay the individuals they represent. Many underpayments directly result from the abusive malpractices described above. Unfortunately, because the end results of such practices are not large enough to justifiably file a lawsuit against the insurance company, many policy holders eat the difference. This does not have to be the case.
With the help of an attorney, individuals who were victimized by their insurance companies can work toward legally holding the company responsible for their underpayments. Although it may be difficult to make a legal issue out of the underpayment of an individual policy holder, it can be significantly more effective when multiple insured parties unite to do so together. Bringing a class action against an insurance company can better ensure that your underpaid claim is recognized and repaid as it should have been in the first place.
Underpaid Insurance Claim FAQ
How do I know if I was underpaid for my insurance claim?
If you received a settlement offer or were already paid by your insurance company, but you suspect this isn’t enough to cover all your losses, it’s possible that your claim was undervalued. This tactic is used by some insurance companies to try to avoid high payouts without drawing the attention that an outright denial would bring. Instead of accepting this for what it is, talk to an attorney. Get an independent inspection of your property or analysis of your claim to see if your suspicions are correct. Your settlement should cover all of the losses you’ve experienced, to your policy limit. If your insurance company has acted in bad faith and underpaid you, you could be entitled to the full value of your claim –plus damages.
What recourse do I have if the insurance company underpaid my claim?
For months, years, or even decades, you’ve faithfully paid your insurance premiums. So, what can you do if the insurance company underpaid your claim? If you already accepted the payment and your claim was essentially resolved, you may still have grounds to pursue its fair value. You’ll need to prove, however, that you were underpaid. This is where a skilled attorney can make a big difference. It’s possible that you’re one of many claimants who were underpaid by the same insurance company, and you could be part of a class action. Or, you could have grounds for an individual lawsuit against the insurer. Either way, an attorney who knows these cases can protect your interests and help you get the money you deserve.
Why do insurance companies underpay valid claims?
It’s simple: insurance companies make money by collecting premium payments from policyholders, not by paying out claims. They need to minimize payouts in order to keep profits high. Some insurance companies take this too far and breach their obligation to act in good faith in handling claims. They underpay because claimants are less likely to come forward and dispute the matter, or even realize that they should have received a higher payout. Although insurance companies have the right to investigate claims to make sure they’re valid and that payments are fair, they should not take it too far by actively trying to find ways to undervalue legitimate claims. When they do, our firm stands ready to see justice served.
Fight Bad Faith Insurance Practices with Our Help
Insurance companies that enact practices of bad faith always do so on a gamble. Adjusters rely on the hope that policyholders will not take legal action against their abusive behaviors, and because so many don't, the adjusters get away with malpractice far too often. Don't let your insurance company take advantage of you in the same way. If your claim was denied, delayed, or underpaid in any capacity, you should not wait speak with an attorney. Arnold & Itkin will gladly review your case completely free of charge and help you move forward with a lawsuit.