Once your claim is accepted by your property damage insurance company, the next hurdle is getting an accurate estimate from the insurance adjuster.  You may think that the adjuster’s estimate is too low and carrier won’t budge on the amount.  You may need to exercise your right to an appraisal.  

Here are the steps to the appraisal process: 

Step 1.   Notify the insurance company that you want to go to appraisal. 

Step 2.   You hire an appraiser and the insurance company hires an appraiser. 

Step 3.   Both appraisers jointly select and pay the cost for an Umpire (umpire’s expenses are split too).

Step 4.   Each appraiser prepares an estimate of your loss. 

Step 5.  Each appraiser submits their estimate to the Umpire.  

Step 6.  If the estimates differ, the umpire makes the final determination. 

The umpire’s decision is final and is not appealable.  You don’t want to take any chances with your most valuable asset.  Hire an experienced  property insurance claim attorney to navigate your appraisal process and engage expert appraisers that prepare accurate estimates.  

If it’s taking a long time for your insurance claim adjuster to respond to your insurance claim questions, chances are you claim is on the way to a denial.  Texas law provides deadlines for when your insurance company must accept or deny your claim.  If you haven’t received a written estimate or a denial letter you could be trapped in insurance claim purgatory where claims go to die. 

There are a few options to consider:

1. Hire a property damage insurance attorney. A skilled insurance attorney can take over management of your property damage claim and get the claim rolling again.  If the insurance adjuster fails to timely investigate and settle your claim, you can be entitled to money damages.  It’s important to call a licensed property insurance claim attorney to  can file suit if you are experiencing  undue delay in resolving or taking action on your claim. 

2. Invoke the appraisal clause.  The squeaky wheel gets the oil. The same is true for property owners that complain about mishandled property damage claims.  The insured and the carrier both have the right to invoke the appraisal clause  when coverage has been confirmed but the amount of the settlement / cost of repair is in dispute.  Invoking the appraisal clause gets your claim moving by bypassing the court system and letting an umpire resolve the estimate dispute. 

3. Hire a Public Adjuster. A licensed Public Adjuster can provide an estimate of your claimed property damage and compare it with the carrier’s estimate.  Public Adjusters work solely on behalf of insureds.  Public Adjusters charge a fee for their services, usually 10% of your claim, so make sure you find a skilled Public Adjuster to reinspect your property damage.  If your Public Adjuster can’t get the company adjuster to agree to a negotiated settlement amount, hire a property insurance attorney that can get it settled or pursue litigation.  

Know Your Rights and Be Protected. Call A Property Insurance Attorney to Manage Your Claim and Maximize Your Insurance Settlement.

Insurance companies are worth billions and are funded strictly by their collected monthly premiums.  It is commonly known that insurance companies are trying to find ways to deny your claim from the moment you dial the claim hotline.  The best thing you can do to maximize your property damage insurance settlement is to begin your claim process with a licensed property damage insurance attorney.  Your attorney will ensure that you have met all of the requirements to have your claim accepted, repairs are timely and your claim settlement is maximized. 

Deadlines for Claims Payments:

• Texas law permits you to sue the insurance company if it fails to promptly pay your claim.  You are entitled to sue your insurance carrier for the amount of your claim plus interest and attorney fees.  

Here are the deadlines you should know:

• There are times when insurance companies need more time to determine coverage of your claim.  They can take up to 45 days but they have to tell you the reason for the delayed payment.  

• In cases of arson, insurance companies have 30 days to confirm coverage or deny your claim.

• If you are filing your claim with Texas Windstorm Insurance Agency they have 60 days to confirm coverage or deny your claim. An accepted claim must be paid within 10 days. 

• Surplus Lines Insurance Companies have 20 business days to pay once they accept coverage of the claim.

Insurance companies get a bad rap for historically using bad faith tactics to deny property damage claims.  Texas law provides a litany of actions that are deemed bad faith conduct that you can sue your insurer for.  It’s important to hire a property insurance attorney to sue your carrier for bad acts.

“Suing the insurer" is a phrase that is often used to describe a property insurance policyholder's last resort when the insurance company wrongfully denies a claim or delays payment. The phrase conjures up images of a David and Goliath struggle, with the policyholder fighting an uphill battle against a large, faceless corporation. 

In reality, however, suing an insurance company is not always a David and Goliath battle. In many cases, policyholders who sue their insurers are actually fighting against Goliath's smaller cousin. In fact, many insurance companies that are sued by policyholders are much smaller companies that are subsidiaries of larger insurance.

More property owners are taking their carriers to court when they are mistreated by insurance adjusters and their claims are mishandled.  The number of policyholders suffering property damage is steadily increasing.  In Texas, claims for hail and hurricane damage are quite common.  

Since the Texas Freeze in 2021, more property damage claims were being filed for water damage from pipes bursting.  Roughly one in 50 insured homes have a property damage claim caused by water damage or freezing each year, according to the Insurance Information Institute.  When your home has been flooded by a sudden pipe burst, watch out for bad faith claims handling by your insurance company.  You don’t want to waste time haggling with your insurance company when you know they are not processing your claim in good faith.  Failing to make  settlement offers, failing to provide an estimate; and denying coverage when your property damage is actually a covered cause of loss are indicators of bad faith.

(Source: https://www.forbes.com/advisor/homeowners-insurance/when-to-hire-lawyer/)