Bad faith insurance practices are when the carrier violates its obligation to the policyholder. It refers to unethical, deceptive, or unreasonable actions and the unfair treatment of a policyholder. These bad faith practices also include unfair processing of third-party claims.
Bad faith practices can happen in any type of insurance claim, like:
Omar Ochoa Law Firm handles all these bad-faith insurance claims and more!
An insurance company must pay any valid claim submitted, whether from their own customer or a third party, in cases where their customer has caused property or other damage to another party.
If an insurance company cannot give you a valid reason for not paying the full amount of your submitted claim, it’s a good indication it may be acting in bad faith. If found guilty of bad faith practices, it may be required to financially compensate you for your losses, including the full claim amount and other damages.
The Texas Insurance Code covers the duties of insurance carriers; Chapter 541.060, the Unfair Methods of Competition and Unfair or Deceptive Acts or Practices Act, specifically sets forth the obligations of an insurance company when it receives a claim:
Chapter 541 also specifically bans insurance bad faith practices in the state, and Chapter 542, the Unfair Claim Settlement Practices Act, specifically addresses the timeline insurance companies must follow when processing claims and communicating with the claim submitter:
Any Texas insurance company found to violate these deadlines is liable for the policyholder’s legal fees and damages, with an additional 18% penalty per year.
Are you unsure whether your insurance company is acting in bad faith or if you are just experiencing normal delays in the claims process?
Examples of Insurance Bad Faith Practices:
Our bad-faith insurance attorneys have seen a lot of bad behavior by insurance companies over the years. We fight to hold your insurance company accountable for its legal responsibilities, working on your behalf to ensure you are treated fairly.
Get the justice you deserve with our expert Bad Faith Insurance Lawyers
Although insurance companies are legally required to pay all valid claims, they aren’t required to pay all claims. Sometimes, fraudulent or inflated claims are submitted, whether in error or by design, and an insurance company can deny those claims.
Common legal reasons your insurance company denied the claim include:
All claimants have the right to appeal a claim denial. An attorney can help craft a strong case for approving a denied claim.
Denied claimants have another option besides appealing a denied claim. If the claim was denied or underpaid in bad faith, rather than for the reasons listed above, the claimant may file a lawsuit against the insurance company for damages from the denied claim and other losses.
A Texas bad faith insurance lawyer helps you get proper compensation, including an amount higher than the face value of the claim or up to three times the initial claim amount if it’s proven the insurance company deliberately acted in bad faith.
Chapter 542 of the Texas Insurance Code covers the types of damages a plaintiff can recover in a bad-faith insurance suit:
Texas specifically permits plaintiffs to collect any other relief a court deems appropriate; this gives Texas judges and juries almost a blank check to hold insurance carriers accountable for their bad faith practices.
Insurance companies have legal departments to fight appeals to denied claims and protect them from being held accountable for unsavory practices. Your own Houston bad-faith insurance claim lawyer helps even the playing field.
As your legal advocate, your attorney investigates the reason for your denied claim and builds a case to prove the insurance company acted in bad faith.
Trust the Houston-based Omar Ochoa Law Firm to:
You don’t deserve a bad faith denial of your valid insurance claim. Insurance companies that engage in bad faith practices deserve to have their deception exposed, and our skilled attorneys can help you achieve that.
Our Houston bad faith insurance claim lawyers work on a contingency basis, meaning you don’t pay a penny until we successfully settle your case or win in court. We know when you’re waiting for insurance coverage for property damages or to cover your medical treatment, you’re facing financial hardship.
There’s no one-size-fits all solution. Every client is individual and we tailor our services for their specific needs.
We have years of experience under our belts and a proven track record of settlements and verdicts
We pride ourselves on being a resource for our clients to turn to whenevery they need it
It’s simple: if we don’t win, you don’t pay.
Members of our team are fluent in Spanish and ready to serve clients in their preferred language.
Want to hear more about how we help and what we do? Don’t just take our word for it. Read our real client reviews and testimonials - and see videos from our real former clients.
Mr. Ochoa was able to help us after a hurricane get us more for our property damage. Also great friendly staff was able to answer all questions!!!
First time getting a lawyer for an accident, Omar Ochoa Lw firm was very helpful in providing clear instructions and information to help me battle my motor vehicle case. I would highly recommend.
I am highly recommending Omar Ochoa law firm. We had damage to our roof and were not satisfied with our insurance. Got recommended to Mr Ochoa he really did all he Could to help us get enough to repair our roof. Staff are also very friendly and helpful. This currently helps to feel welcome. Again I highly recommend if you are looking for help with roof repair and you were not satisfied with your insurance reimbursement
We aren’t afraid to take on even the largest insurance company. Omar Ochoa Law Firm has the resources to properly litigate your bad faith insurance claim — contact us today!
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Both negligence and bad faith refer to one party failing to fulfill its obligations to another party. To prove a party acted in bad faith versus simply being negligent, it must be proven that it maliciously and knowingly refused to fulfill its contractual obligation.
Texas sets a statute of limitations for filing a bad faith insurance lawsuit of two years from the date of the first bad faith act. Determining the exact date is difficult, so contact an attorney sooner rather than later. If you miss the deadline, your case will be dismissed.