Everything is bigger in Texas. Unfortunately, that can also include wind and hail damage to your personal property, business or institution. It truly is a significant issue in the Lone Star State, causing extensive destruction to buildings, vehicles and infrastructure each year. In 2023 alone, the state faced over $10 billion in losses due to wind and hail damage. Nationwide, these types of weather events cost the U.S. economy around $20 billion each year.
Carriers raise insurance rates
As the frequency and severity of extreme weather events increase, companies adjust to ensure it doesn’t affect their bottom line. One of the most noticeable changes is the rise in insurance premiums. Homeowners in Texas have seen their insurance rates climb significantly over the past few years. Insurers argue that these increases are necessary to cover the growing number of claims and the higher costs of repairs and replacements. For example, Texas’s average homeowner’s insurance premium has risen by nearly 20% in the last five years. This trend will likely continue as climate change leads to more unpredictable and severe weather patterns.
Insurance companies and claim denials
Despite the rising premiums, some policyholders now struggle to get their claims approved or paid in full. Insurance companies often employ various tactics to minimize their payouts. Some common strategies include:
- Delaying claims: Insurers may take a long time to process claims, hoping that policyholders will give up or accept a lower settlement.
- Denying coverage: Companies might deny claims based on technicalities or argue that the damage was due to pre-existing conditions or lack of maintenance.
- Underpaying claims: Even when claims are approved, insurers might offer significantly lower settlements than the actual repair costs.
These practices can leave policyholders in a difficult position, unable to afford the necessary repairs to their properties.
Hiring an insurance law lawyer
Given these challenges, policyholders must seek professional help to ensure they receive the compensation they are entitled to under their insurance policies. Hiring an insurance law lawyer can make a significant difference. These legal professionals specialize in holding insurance companies accountable and can help navigate the complex claims process. They can review your policy, negotiate a fair settlement with insurers and litigate in court if the insurer refuses to honor its obligation.
