Insurance Bad Faith Lawyers in Houston

Is it worth suing an insurance company?

If you have a claim, it is absolutely worth it to sue the insurance company. These companies count on policyholders accepting their decisions without question, but when they act in bad faith, you can always pursue legal action to hold them accountable.

The financial stakes in bad-faith cases can be substantial. Unlike typical breach of contract claims, where you might only recover the policy benefits owed, bad faith lawsuits can result in punitive damages that far exceed your original claim amount. These additional damages serve to punish the insurance company for their misconduct and deter similar behavior in the future.

Unsure of whether your situation qualifies as bad faith? Call Calderon Law Firm today at (346) 999-5673 to speak with a Houston insurance bad faith attorney. We will review your case at no cost to you and explain your legal options.

What is bad faith in insurance law?

Bad faith in insurance law occurs when an insurance company fails to deal fairly and honestly with its policyholders. Every insurance contract contains an implied covenant of good faith and fair dealing, which implies specific duties from the insurance company to their policyholders.

Insurance companies have a duty to:

• Promptly investigate claims 

• Communicate clearly about coverage decisions

• Have reasonable bases for denying claims

When insurers violate these duties, they may be liable for bad faith conduct.

Bad faith can manifest in various ways, from outright claim denials without proper investigation to subtle tactics designed to delay payment and pressure policyholders into accepting inadequate settlements. It can be tough to tell what is bad faith and what isn’t, especially without a skilled lawyer in your corner.

Types of bad faith insurance practices

Insurance companies employ a number of tactics to avoid paying legitimate claims, and recognizing these practices can help you know when you may have a claim. Bad faith can manifest in a number of ways, but some of the more common include:

1. Unreasonable claim denials are one of the most egregious forms of bad faith. This occurs when insurance companies deny claims without conducting adequate investigations or when they deny claims that clearly fall within policy coverage. 

2. Delayed claim processing is another common tactic designed to pressure policyholders into accepting lower settlements. While insurance companies are allowed reasonable time to investigate claims, deliberately stalling the process to cause financial hardship constitutes bad faith.

3. Inadequate claim investigations occur when insurance companies fail to thoroughly examine the facts surrounding your claim. This might include refusing to interview witnesses, failing to inspect damaged property properly, or ignoring expert opinions that support your claim. 

4. Lowball settlement offers involve insurance companies offering significantly less than what a claim is worth, hoping policyholders will accept inadequate compensation rather than fight for fair value. This practice is particularly harmful when policyholders are facing immediate financial pressures and need a quick resolution.

5. Misrepresenting policy language is a deceptive practice in which insurance companies incorrectly interpret policy terms to avoid coverage. 

There are a number of ways that an insurer can act in bad faith, but proving bad faith always requires demonstrating that the insurance company knew or should have known that their conduct was unreasonable. This often involves examining the company's internal communications, claim handling procedures, and whether they followed industry standards in processing your claim.

When can insurance companies deny insurance claims?

It’s important to note that insurance companies do have legitimate reasons for denying insurance claims. If any of these apply to your case legitimately, you may not have a bad faith case against them:

The key distinction between a legitimate denial and one done in bad faith is that they cannot use legitimate reasons as pretexts for avoiding payment on valid claims or apply standards inconsistently to benefit their own financial interests; they must reasonably evaluate these factors and act in good faith.

How much can I sue an insurance company for bad faith?

The potential recovery in insurance bad faith lawsuits can be substantial, often exceeding the original claim amount significantly. Unlike typical breach of contract cases where damages are limited to the policy benefits owed, bad faith claims can result in multiple categories of damages that reflect the full scope of harm caused by the insurance company's misconduct.

• Economic compensatory damages include the original policy benefits that should have been paid, plus any additional damages caused by the wrongful denial or delay.

• These may include extra living expenses, additional medical costs, and lost income if you were unable to work.

• Non-economic compensatory damages include compensation that is a bit more difficult to measure, and include damages for pain and suffering, mental anguish, and loss of enjoyment of life. 

• Punitive damages are designed to punish egregious conduct and deter similar behavior in the future.

• Texas courts can award substantial punitive damages when insurance companies act with malice or gross negligence in handling claims.

Working with the best personal injury lawyer Houston has to offer can significantly improve your chances of recovering fair compensation. Attorneys understand what evidence insurance companies require and can help gather the documentation necessary to support your claim effectively.

We've taken on major insurance companies and won. Let us do the same for you.  Call us today at (346) 999-5673 for a 100% free case review.

Do insurance companies settle bad faith claims?

Insurance companies frequently settle bad faith claims before trial, often because the potential exposure in these cases can be enormous and unpredictable. Settling before trial isn’t guaranteed, however, as insurance companies also have teams of lawyers ready to protect their interests in court. Some factors that may influence whether the insurance company will settle include:

• Early settlement considerations often favor insurance companies because they can control their exposure and avoid the uncertainty of trial outcomes. 

• Strength of evidence plays a huge role in settlement decisions. When policyholders have strong documentation of bad faith conduct, including internal insurance company communications showing unreasonable claim handling, insurers are more likely to settle quickly to avoid worse outcomes at trial.

• Publicity concerns also motivate insurance companies to settle bad faith claims. Bad faith cases often generate negative publicity that can damage insurance companies' reputations and affect their relationships with other customers and regulatory authorities.

• Regulatory pressure can influence settlement decisions, particularly when insurance commissioners or other regulatory bodies are investigating insurance company practices. Companies may prefer to settle individual claims rather than face broader regulatory scrutiny.

Some insurance companies choose to fight bad faith claims, especially when they believe their resources outweigh those of the claim they face. You’ve got to be prepared to fight. This is why it’s essential to hire an experienced insurance bad faith lawyer who can prepare your case for trial when you decide to sue the insurance company.

How Calderon Law Firm fights insurance companies acting in bad faith

At Calderon Law Firm, we understand that insurance companies have vast resources and experienced legal teams dedicated to minimizing claim payouts. Our approach to fighting bad faith involves aggressive investigation, strategic litigation, and unwavering commitment to our clients' rights.

1. Thorough case investigation forms the foundation of our bad faith practice. We examine every aspect of your claim, from the initial reporting through the denial or delay. This includes reviewing all communications with the insurance company, analyzing their investigation procedures, and identifying where their conduct fell below industry standards.

2. Expert witness testimony strengthens our bad faith cases by providing professional opinions about proper insurance practices. We work with former insurance company executives, claims adjusters, and industry experts who can testify about what reasonable claim handling should look like and how your insurance company's conduct departed from accepted standards.

3. Discovery of internal documents often provides the most compelling evidence in bad-faith cases. Through the litigation process, we can compel insurance companies to produce internal emails, claim handling guidelines, training materials, and other documents that reveal their true motivations and decision-making processes.

4. Aggressive negotiation based on thorough case preparation often leads to fair settlements without the need for trial. Insurance companies know that we're prepared to take cases to trial when necessary, which gives us significant leverage in settlement negotiations.

5. Trial experience sets us apart from attorneys who primarily handle settlement negotiations. Insurance companies respect lawyers who have proven track records of success at trial, knowing that we won't hesitate to present their bad faith conduct to a jury when settlement negotiations fail.

If you need a Houston car wreck lawyer, whether you've been involved in a truck accident in Houston or you need a Houston Uber accident lawyer, we've seen how insurance companies treat accident victims, and we're committed to holding them accountable.

Looking for lawyers who sue insurance companies? Contact Jose Calderon today for the help you need.

Insurance bad faith can devastate families who are already dealing with injuries, property damage, or other significant losses. When insurance companies prioritize profits over people, they leave policyholders struggling to pay medical bills, repair damages, or replace lost property while fighting for coverage they've already paid for through premiums — that’s where we come in. 

Our Houston insurance bad faith lawyers understand that bad faith insurance practices cause more than just financial harm. That's why we're committed to not just recovering compensation, but also ensuring that insurance companies face consequences for their misconduct.

Don't let insurance companies take advantage of your trust and good faith. If your insurance company has denied a valid claim, delayed payment unreasonably, or used deceptive practices to avoid their obligations, you have rights that deserve protection.

Call Jose and Calderon Law Firm today at (346) 999-5673 or contact us online for a free consultation. When insurance companies act in bad faith, we're here to hold them accountable and protect your rights.