Many of us are told to get insurance to protect ourselves and our families financially after a catastrophic life event. However, merely having insurance does not guarantee that your loss will be covered by your policy. In fact, insurers may even deny valid claims to avoid paying out benefits. If an insurer has wrongfully denied your claim, you may be able to file a lawsuit against your insurer for breaching the duties owed to you as a policyholder.
Insurers may cite various reasons for denying your claim, including lack of coverage, errors made during the application process, failing to notify the insurer of the claim in a timely fashion, or fraud. However, just because an insurer cites a reason for denial, does not mean that the reason is legitimate. As a policyholder in the state of Texas, you are protected under the Texas Insurance Code and other state laws, which are intended to prevent insurers from violating their policies and acting in bad faith.
If your insurer improperly denies your claim, you may allege breach of contract, bad faith, and/or unfair trade practices in your lawsuit against the insurance company. These claims will be based on the actions of your insurer from the moment you file your insurance claim for damages. Insurers may be liable for damages for failing to complete a thorough investigation into the claim, delaying a claim investigation, failing to make a decision regarding the claim within a reasonable period of time, or denying a claim that should have been approved.
Your attorney may be able to negotiate with your insurance company following a delayed or denied insurance claim and get you a fair settlement, without anyone having to go to court. However, if the insurance company is unwilling to make a reasonable offer, filing a lawsuit may be the best option. If your lawsuit is successful, recover compensatory damages from your insurer to cover medical expenses, lost wages, and other costs related to the event.