You pay your insurance premiums every month, trusting that if disaster strikes, your insurance company will honor its promise. Whether facing the aftermath of a hurricane, a serious car accident, or a house fire, you have a legal right to fair and prompt payment under your policy.
Unfortunately, some insurance companies do not honor their contractual agreements. Insurance carriers are for-profit businesses, and they typically view claims as losses to their bottom line rather than obligations to fulfill. When they unreasonably delay, underpay, or flat-out deny a valid claim, they may be violating Texas law.
This behavior is known as acting in bad faith. As Houston insurance bad faith lawyers, we know that holding these massive corporations accountable demands an aggressive and informed legal strategy.
If your claim has been wrongfully denied, devalued, or delayed, the Calderon Law Firm is ready to step in. Call us today for a free consultation at 346-999-5673.
Why Choose Calderon Law Firm to Fight Your Insurer?
When you file a claim, you are up against a corporation with vast resources and teams of defense attorneys. Their goal is to protect their financial interests. You deserve to have a firm fighting just as hard for yours.
A History of Standing Up to Corporations
From our office in Bellaire, Calderon Law Firm serves individuals and families across the greater Houston area. Our founder, Jose M. Calderon, is a Houston native and the first-generation son of Mexican immigrants. This firm was built on the principle of giving a voice to those who are ignored by powerful entities.
After representing hundreds of clients at established Texas personal injury firms, Jose Calderon launched his own practice to provide direct, high-touch client service. He wanted to do things his own way, ensuring every client felt seen and heard.
Our firm operates as a boutique practice, meaning we are selective about the cases we accept. If we take on your bad faith insurance case, it's because we believe in it and are prepared to see it through to the end.
Award-Winning Representation
Our commitment to relentless advocacy has earned professional recognition. Jose Calderon was named to The National Trial Lawyers' "Top 40 Under 40" within his second year of practice, a selective honor for young trial attorneys.
He has also been selected to the Texas Super Lawyers Rising Stars list every year since 2020, a distinction given to fewer than 2.5% of attorneys in the state.
We Are Your Neighbors
Our office is located at 6750 West Loop South in Bellaire, situated at the intersection of the 610 Loop and the Southwest Freeway (US-59). This central location makes us easily accessible to communities throughout Houston, from Meyerland and The Galleria to the Texas Medical Center and beyond.
As a fully bilingual firm (English and Spanish), we ensure that language is never a barrier to justice. We are proud to serve Houston's vibrant communities, providing clear communication and dedicated representation to every client.
Our Guarantees to You
We believe that your financial situation should not dictate your ability to seek justice. Here is our commitment to you:
- Transparent Fee Structure: We handle insurance bad faith cases on a contingency basis. This means you do not pay us any hourly rates out of your pocket. Our fee is a percentage of the compensation we recover for you, meaning we only get paid if we win.
- Direct Access: At larger firms, it is common to be handed off to case managers or paralegals. We prioritize direct attorney access. You are able to call or text us with questions and expect prompt, clear communication directly from your lawyer.
What Counts as Bad Faith?
Not every denied claim is an act of bad faith. Insurance companies have the right to investigate claims, ask reasonable questions, and ultimately deny coverage when the policy genuinely does not apply. The line is crossed when an insurer acts unreasonably, dishonestly, or without a legitimate basis for their decision.
Under Texas law, bad faith occurs when an insurance company knows a claim is valid (or should have known if they had conducted a proper investigation) and still refuses to pay. Mistakes have nothing to do with it; it is about knowingly prioritizing profits over the promises made to policyholders.
Here are some of the most common behaviors that can constitute bad faith under the Texas Insurance Code:
- Denying a claim without conducting a reasonable investigation. Your insurer cannot simply look for reasons to say no. They are obligated to gather facts that support your claim, not just facts that justify a denial.
- Unreasonable delays in processing or paying your claim. If weeks turn into months with no resolution, no communication, or endless requests for paperwork you have already submitted, this pattern of stalling may violate the Prompt Payment of Claims Act.
- Offering far less than your claim is worth. A settlement offer that does not come close to covering your actual losses, especially when the insurer knows the true extent of the damage, can be evidence of bad faith.
- Misrepresenting your policy's coverage. If an adjuster tells you something is not covered when your policy clearly says otherwise, that misrepresentation is a serious violation.
- Failing to provide a clear explanation for a denial. You have the right to know exactly why your claim was rejected and which policy provisions the insurer is relying on. Vague or shifting explanations are a red flag.
- Threatening or intimidating policyholders. Any attempt to discourage you from pursuing your claim through pressure tactics or misleading statements about your legal rights is unacceptable conduct.
At the end of the day, you don't need to be 100% sure your insurer is acting in bad faith. If you notice the red flags, that's enough. During your consultation with us, we will review your case to determine whether or not you can pursue a claim against them.
What Remedies Are Available in a Bad Faith Lawsuit?
The goal of an insurance claim is to be made whole, meaning to receive the money needed to repair your property or cover your losses as defined by your policy. A bad faith lawsuit goes a step further. Its purpose is to recover what you were originally owed and to penalize the insurer for their unlawful conduct.
Texas law provides several avenues for recovery in these cases:
- Contractual Damages (Economic): This is the foundational amount-i.e., the money the insurance company should have paid you in the first place under the terms of your policy. This could be the cost to repair a storm-damaged roof, the value of a totaled vehicle, or payment for medical bills.
- Statutory Penalties & Interest: The Texas Prompt Payment of Claims Act is a powerful tool. If an insurer delays payment of a valid claim without a reasonable basis, you may be entitled to penalty interest on the delayed amount. This interest is 18% per year, in addition to recovering your attorney's fees.
- Mental Anguish (Non-Economic): The stress of fighting an insurance company while your home is in disrepair or medical bills are piling up is real. In cases where the insurer's denial or delay caused significant emotional distress, Texas law allows you to seek compensation for that suffering.
- Treble Damages (Punitive/Sanction): Under the Texas Deceptive Trade Practices Act (DTPA) and the Texas Insurance Code, if an insurer acted "knowingly" or "intentionally" in their bad faith conduct, a court may award up to three times the amount of your actual damages.
We will evaluate the details of your denial to determine which statutory penalties and damages may apply to your case.
Where and Why Insurance Disputes Occur in Houston
Houston's unique geography and weather patterns unfortunately make it a hotspot for insurance claims and, consequently, insurance disputes.
The risks here are distinct and frequent:
- Weather-Related Claims: Our region is susceptible to hurricanes, tropical storms, and flash flooding events. The devastation left by storms like Harvey and Ike led to thousands of property damage claims, many of which were unfairly denied or underpaid.
- Hail and Wind Damage: Severe thunderstorms are common, especially in suburban areas like Katy, Cypress, and our own Bellaire. Insurers frequently dispute the extent of roof damage, blaming it on wear and tear to avoid paying for a full replacement.
- Uninsured/Underinsured Motorist (UM/UIM) Claims: Houston's traffic on major arteries like I-45, I-610, and US-59 is notoriously dangerous. With a high rate of uninsured drivers in Harris County, many people are forced to file claims with their own insurance companies under their UM/UIM coverage. This leads to conflicts where your own insurer acts like an adversary.
Whether your property flooded in Meyerland or you were in a collision on the West Loop, our Houston insurance bad faith lawyers understand the local context behind these claims.
Your Rights Under Texas Bad Faith Laws
Insurance bad faith law in Texas is governed by a combination of statutes and common law precedent. It is designed to protect you, the policyholder, from unfair practices.
There are two main categories of bad faith claims:
- First-Party Claims: This is a dispute between you and your own insurance company. Examples include homeowners, auto (UM/UIM), health, and life insurance claims.
- Third-Party Claims: This typically involves a liability policy. For instance, if you are sued for a car accident and your auto insurer refuses to defend you in court or fails to settle a claim within your policy limits, you may have a third-party bad faith claim.
Several key statutes form the backbone of these protections:
- Texas Insurance Code Chapter 541: This chapter prohibits a wide range of unfair methods of competition and deceptive acts. This includes things like misrepresenting the terms of a policy or failing to attempt a fair and equitable settlement when liability is reasonably clear.
- Texas Insurance Code Chapter 542 (Prompt Payment of Claims Act): This law sets firm deadlines for insurers. Generally, they have 15 days to acknowledge your claim, another 15 business days to accept or reject it after receiving all necessary information, and just 5 business days to issue payment once a claim is approved.
- The Duty to Investigate: Insurers have an obligation to conduct a reasonable and thorough investigation of your claim. They cannot simply look for excuses to issue a denial; they must search for evidence that supports paying the claim as well.
Act promptly. The statute of limitations for filing a bad faith lawsuit in Texas is generally two years from the date of the denial or unfair act. While that may seem like a long time, the physical evidence of your claim (such as water lines from a flood, mold growth, or the condition of a damaged vehicle) degrades much faster.
Steps to Take While Your Claim is Pending
While your claim is being investigated, the actions you take have a significant impact on a potential bad faith case. Here are some practical steps to protect yourself:
- Keep a Claim Journal: Document every phone call with the insurance company. Note the date, time, the name of the person you spoke with, and a brief summary of the conversation.
- Save All Correspondence: Maintain a folder, both physical and digital, for every letter, email, and text message you receive from the insurer.
- Request Denials in Writing: Never accept a verbal denial. If an adjuster tells you on the phone that your claim or part of it is denied, insist that they send you that denial in writing, citing the specific policy language they are relying on.
- Do Not Cash Checks Prematurely: Be very cautious about cashing a check that is marked as a full and final settlement if the amount is less than what you believe you are owed. Cashing it could be interpreted as accepting their offer and waiving your right to further payment.
- Review Your Declarations Page: Your policy's declarations page is a summary of your coverage. Take the time to understand your coverage limits and deductibles.
FAQ for Houston Insurance Bad Faith Claims
What is the difference between a breach of contract and bad faith?
A breach of contract is simply the insurer's failure to pay what is owed under the policy. Bad faith is a separate legal issue that involves the insurer's unreasonable, deceptive, or unfair behavior during the process of denying or handling that claim.
Can I sue if my insurance company keeps changing the adjuster assigned to my case?
While not a cause of action on its own, the frequent reassignment of adjusters, especially if it causes significant delays and forces you to restart the process each time, serves as strong evidence of a bad faith practice.
Does the Prompt Payment law apply to flood insurance?
Generally, no. Standard flood insurance policies are backed by the National Flood Insurance Program (NFIP), which is a federal program. These policies operate under different federal rules and deadlines, not the Texas Prompt Payment of Claims Act. We have experience handling both types of claims and will help you understand the specific rules that apply.
Can I recover attorney fees in an insurance dispute?
Yes. In Texas, if you win a bad faith lawsuit under the Insurance Code, the insurer is typically required to pay your reasonable and necessary attorney fees in addition to your damages.
What if the insurance company claims the damage was pre-existing?
This is one of the most common denial tactics. We counter this by working with a network of independent engineers, public adjusters, and contractors to conduct our own assessment and prove that the damage was caused by the covered event, such as a specific storm or hailstorm.
Don't Let a Denial Be the Final Word
Insurance companies count on you giving up when the process becomes difficult. They rely on complicated policy language and bureaucratic delays to discourage you from pursuing the full and fair value of your claim.
You held up your end of the bargain by faithfully paying your premiums. Now, it is time to force them to hold up theirs. At Calderon Law Firm, we have the resources, trial experience, and dedication to level the playing field against even the largest insurance carriers.
You do not have to fight this battle alone. Call our Houston office immediately at 346-999-5673 to discuss your case in a free, confidential consultation.