INSURANCE BAD FAITH ATTORNEY AUSTIN TX
Texas law requires insurance companies to deal fairly and in good faith with policyholders. When insurers wrongfully deny claims, delay payment without reasonable basis, or misrepresent policy terms, they may be liable for bad faith — and extra-contractual damages beyond the policy limits. The Texas Insurance Code provides strong remedies including up to 18% interest and attorney fees for certain violations.
What We Can Help You With
Wrongful claim denial
Fighting improper denial of homeowners, auto, health, disability, and business insurance claims
Unreasonable delay
Texas Insurance Code Prompt Payment provisions — up to 18% interest on delayed payments
Misrepresentation of coverage
Claims where the insurer misrepresented policy terms to avoid payment
Undervalued claims
Fighting lowball settlement offers from property insurers after Austin storm damage
Unfair settlement practices
Statutory bad faith under Texas Insurance Code Chapter 541
Attorney fee recovery
Successful bad faith claims can recover attorney fees from the insurer — making claims cost-effective to pursue
Frequently Asked Questions
What is insurance bad faith in Texas?▾
Bad faith occurs when an insurer denies a claim, delays payment, or misrepresents coverage without reasonable basis and knows or should know the claim is covered. Texas Insurance Code Chapter 541 prohibits unfair settlement practices.
What damages can I recover for insurance bad faith?▾
In addition to the covered claim amount, you may recover attorney fees and up to 18% annual interest under Prompt Payment provisions, plus additional damages under Chapter 541 for unfair settlement practices.
What is the Prompt Payment Act in Texas?▾
The Texas Insurance Code requires insurers to acknowledge claims within 15 days, accept or deny within 15 days of receiving information, and pay within 5 days of acceptance. Violations can result in 18% interest penalty.
Can I sue my own insurance company for bad faith?▾
Yes. First-party bad faith claims against your own insurer for wrongful denial of UM/UIM, homeowners, health, or disability benefits are common and often the most significant claims.