By SPJ Adjusting Services | Insurance Appraisals
Insurance Bad Faith Verdict Lessons: High-stakes jury trials have often presented the perception of insurance buyers finally gaining victory over an insurance firm. However, as many property owners in El Paso, Texas, have found, a jury trial is not always the end of an insurance dispute.
Recently, a highly publicized verdict for bad faith against a national carrier was reversed in its entirety by the trial court following review of the case. Although this case did not occur in Texas, its ramifications apply with ever-greater significance to Texas churches, commercial properties, homeowners, and contractors facing roof damage and hail claims and assessments by insurance companies.
In many cases that we see at SPJ Adjusting, strong claims are often diminished not because there isn’t valid damage but because the evidence is inadequate.
Why Jury Verdicts Can Be Reversed
As any
When the trial is over, the insurers always file post-trial motions asking the court to assess if there is indeed evidence to sustain a verdict. In this particular case, the court of law determined that the insured did not prove two essential issues:
Actual Cash Value (ACV) of damaged property:
This refers
Eligibility Requirements for Replacement Cost Benefits
AGE Volume
Insurance contracts in Texas and other states require specific evidence of valuation. Usually, replacement cost benefits are not due prior to repairs and replacement. Without proof of either actual cash value or repairs, an otherwise winning verdict could go up in smoke.
Implications of the Decision in El Paso Property Claims
The court ruling in the
Properties in El Paso routinely experience hail damage, wind, and roofing damage, followed by disputes involving scope, cost, and depreciation. Once a claim leads to appraisal, the use of an umpire, and then lawsuits, documentation becomes crucial to recovery.
Properties in El Paso routinely experience hail damage, wind, and roofing damage, followed by disputes involving scope, cost, and depreciation. Once a claim leads to appraisal, the use of an umpire, and then lawsuits, documentation becomes crucial to recovery.
Policyholders who fail to
Document ACV Appropriately
Maintain repair invoices
Keep expert reports
may find their position weakened even after several years of contention. It is highly possible that a
This is where the strategy of a public adjuster comes into play long before trial.
At SPJ Adjusting, our aim is not only to represent claims but also to make the claims defensible. The services we offer enable claims to withstand analysis by insurers, appraisal, or court requirements.
Bad Faith
Recently, a highly publicized verdict for bad faith against a national carrier was reversed in its entirety by the trial court following review of the case. Although this case did not occur in Texas, its ramifications apply with ever-greater significance to Texas churches, commercial properties, homeowners, and contractors facing roof damage and hail claims and assessments by insurance companies.
We offer:
Insurance Appraisal Services in situations of valuation dispute
Umpire Services for unresolved appraisal issues
Damage assessments of roofs that use measurable data
Hail, Wind, Flood, and Hurricane Liability Coverage.
Adjusters’ assistance to the public was made to depend on evidence, not on
Strong arguments rest on evidence that can withstand appeals, not headlines.
Insurance Bad Faith: The Real Lesson for Texas Policyholders
This overturned verdict is not a victory for insurance companies; rather, this serves as a warning for policyholders. No case is won in court on feelings of outrage and sympathy, but on evidence.
In Texas, specifically for complex or high-value litigation, the payment or denial may boil down to the following:
Accuracy of valuation
The optimal time to make a
Appropriate documentation:
Strategic Claim Handling This is why involving seasoned claims professionals early can help protect your recovery downstream.
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