Legal Remedies and Explanations

WORK WITH A BAD FAITH INSURANCE CLAIM ATTORNEY IN TEXAS

Unsatisfied insurance customers have several legal remedies and causes of action available to them in the event that the insurance company fails to fulfill its obligation. Homeowners who have insurance have a contract with their insurance company. In addition to obligations pursuant to the contract, the insurance company also owes its insureds a duty of good faith and fair dealing in handling their claims.
Breach of the contract or the other duties the insurance company owes you can obligate the insurance company to pay you damages, including attorney’s fees. In addition to the common law remedies described above, there are provisions that have been enacted by our legislature to protect insureds for untimely payments and other bad faith insurance practices (including misrepresentations, poor claims handling, and malicious conduct).
Separate statutory sections (statutory means that these are issues that have been addressed by our Texas Legislature) give extra remedies, including an 18% penalty for late payment of claims. The provisions provided by the legislature can also include an award of attorney fees. Some statutory provisions contain additional damages as well, including the Texas Deceptive Trade Practice Act.

HOLDING YOUR INSURER ACCOUNTABLE

If you have fallen prey to bad faith practices from your insurance company, and you plan on taking them to court, there are certain types of damages your insurer may be held responsible for. These penalties may call for alterations to the contract or reparations for your insurer’s negligence. They were established to punish insurance companies practicing bad faith, and to award you the compensations you deserve.
The most basic of these damages are aimed at compensating you for any losses you may have acquired as a result of the breach of your contract. These damages reimburse any direct losses you expected to receive from the contract. They may also atone for any indirect losses you may have experienced from the breach, but you must be able to prove that these damages stemmed from the breach.
  • Liquidation damages are clearly outlined in the contract and are made available when you incur any damages that may be difficult to anticipate, such as a late performance.
  • Disciplinary damages are specifically used to punish your insurer. They typically don’t apply to breach cases, but may be administered if your insurer is found guilty of fraud.
  • Precedent damages are used by the court to make an example out of your insurance company. They typically apply solely to cases involving fraud.
  • Restitutions are allocated to prevent your insurance company from being unfairly enriched from their misdeeds. For instance, if your insurer failed to pay you after a car accident, they would be required to pay you the full amount that is owed to you to prevent their enrichment.

DIFFERENT TYPES OF REPARATIONS

Your insurance company may also be required to provide equitable remedies that don’t necessarily come in the form of a monetary award. They usually involve the court ordering your insurer to act or refrain from acting in a certain way. The following are a few types of equitable remedies:
  • Specific performance – This is a court order that requires your insurer to fulfill the part of the contract they failed to fulfill.
  • Contract recession – This usually occurs when a contract was fraudulently conceived. The judge will require your insurer to discard the original contract and write another one.
  • Contract reformation – This requires you to sit down with your insurer and rework the contract so that it is clear and there are no further discrepancies.

CALL OUR BEAUMONT INSURANCE BAD FAITH LAW FIRM FIRST!

Because of the complexity of the legal issues involved in a property damage case, it is important that you retain counsel with experience in these matters. Clint Brasher represented hundreds of families for their Hurricane Rita claims, and is a skilled bad faith insurance attorney in Texas. Stay connected with this site or contact Brasher Law Firm, PLLC for more information!

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