Texas insurers owe their policyholders a duty of good faith and fair dealing, and the Texas Insurance Code prohibits unfair claim-settlement practices. When an insurer unreasonably denies, delays, or underpays a valid claim, it may be acting in bad faith.
The Duty of Good Faith
This most often arises with first-party claims, such as UM/UIM or property coverage under your own policy.
Remedies for Bad Faith
A successful bad-faith or Insurance Code claim can recover not only the policy benefits owed but also additional damages, and in some cases penalties and attorney fees. The prompt-payment statute imposes deadlines and interest when insurers delay.
These claims require documenting the insurer's unreasonable conduct.
If Your Insurer Won't Pay
A free review can help you understand whether your insurer's conduct crosses the line into bad faith.
Have questions about your own situation? Get a free, confidential case review. You pay no fee unless you win. Call 973-566-5599.
This article is for general informational purposes only and is not legal advice. For guidance on your specific situation, consult a licensed Texas attorney.