It’s a common tactic: an insurance company drags its feet, hoping you’ll get frustrated and either give up or accept a lowball offer. They have teams of adjusters and lawyers, and they count on you not knowing the rules of the game. But the law is on your side. In Texas, there are specific statutes that protect you from unreasonable delays and unfair treatment. You don’t have to just sit and wait while your life is on hold. If you’re wondering, can I sue my insurance company for taking too long?, you’re asking the right question. This article will give you a clear action plan, showing you how to document their behavior and build a powerful case to get the compensation you deserve.
Key Takeaways
- Know the Deadlines and Document Everything: Texas law sets firm timelines for insurers to act on your claim. Track these dates and keep a detailed log of every phone call and email to build a clear record of any unreasonable delays.
- Recognize Bad Faith Tactics: Don’t dismiss persistent delays, poor communication, or lowball offers as just bad service. These are common red flags that your insurer may be intentionally avoiding their responsibility to pay your claim fairly.
- You Have the Power to Fight Back: If your insurer is stalling, you can take legal action. An experienced attorney can use consumer protection laws to hold them accountable, often recovering your claim, interest penalties, and legal fees without any upfront cost to you.
How Long Is Too Long for an Insurance Claim?
Waiting for an insurance company to process your claim can feel like watching paint dry. A little bit of patience is expected, but at what point does a reasonable wait turn into an unacceptable delay? While every claim is different, there are specific rules and general timelines that can help you figure out if your insurer is dragging its feet. Understanding these timelines is the first step in protecting your rights and getting the payout you deserve.
Know the Official Deadlines and Rules
Insurance companies can’t just leave you hanging indefinitely. They have a legal duty to handle claims within a reasonable timeframe. In Texas, the law sets clear deadlines for them. Once you file a claim, your insurance company has 15 days to acknowledge they’ve received it. After they have all the information they need from you, they have another 15 business days to investigate and then accept or reject your claim. These aren’t just suggestions; they are requirements designed to protect you, the policyholder. Knowing these rules gives you a benchmark to measure your insurer’s performance against.
What’s a Standard Processing Time?
While the official deadlines are firm, the total time it takes to settle a claim can vary. Generally, an insurance company has about 30 days to complete its investigation, but this can change based on the situation. The clock on that 15-business-day decision period in Texas doesn’t start until the adjuster has every single piece of paperwork they’ve requested. This is why it’s so important to respond to their requests quickly and thoroughly. If your claim is straightforward, you can often expect a resolution within a month or two. However, more complex cases will naturally take longer.
Why a Claim Might Legitimately Take Longer
Not every delay is a sign of trouble. Sometimes, there are valid reasons why your claim is taking more time. A case involving extensive storm damage might require multiple inspections and expert reports, which adds to the timeline. Other legitimate reasons for a delay include missing paperwork from your end, waiting on medical records for an injury claim, or the sheer volume of claims after a major weather event. An insurer might also deny a claim if your policy doesn’t cover the specific event or if you haven’t provided enough proof of your loss. A responsible insurer should always communicate the reason for any delay.
Is Your Insurance Company Acting in Bad Faith? Watch for These Red Flags
It can be tough to tell the difference between a frustrating but normal claims process and an insurer who is deliberately trying to avoid paying what they owe. Insurance companies have a legal duty to act in “good faith,” which means they must treat you fairly and honestly. When they don’t, it’s called “bad faith.” While not every delay or denial qualifies, certain behaviors are major red flags that your insurer isn’t playing by the rules. If you start noticing a pattern of these tactics, it’s time to pay closer attention and consider your next steps. Trust your gut—if the process feels intentionally difficult, it probably is.
Unexplained and Excessive Delays
Patience is a virtue, but it has its limits, especially when your life has been disrupted by property damage or an injury. While complex claims can take time to investigate, your insurance company shouldn’t leave you in the dark. If weeks or months go by with no updates and no clear reason for the hold-up, it’s a significant red flag. An insurer acting in good faith will provide a reasonable explanation for any delay. When they take an unreasonably long time to process your claim without justification, they may be hoping you’ll get frustrated and give up. This is a common bad faith tactic that a property insurance lawyer can help you address.
Radio Silence and Poor Communication
Are your calls going unanswered? Are your emails met with silence or vague, unhelpful auto-replies? An insurance company has a responsibility to communicate with you about the status of your claim. Ghosting a policyholder is not acceptable. If your adjuster is impossible to reach, never has a real update, or refuses to give you straight answers about your policy coverage, they are failing in their duty. This lack of communication can be a deliberate strategy to stall the process and wear you down. Clear, consistent, and honest communication is the bare minimum you should expect, and its absence is a strong indicator of bad faith.
Endless, Repetitive Paperwork Demands
Submitting an insurance claim always involves paperwork, but it shouldn’t feel like a never-ending loop. A common sign of bad faith is when an insurer repeatedly asks for documents you’ve already sent or makes endless requests for information that isn’t relevant to your claim. This tactic is designed to create frustrating delays and create the appearance that you are the one holding up the process. While a legitimate request for missing paperwork can happen, a cyclical pattern of losing documents or demanding the same forms over and over again suggests the insurer is creating artificial roadblocks to avoid paying your claim.
Unfairly Low Offers and Quick Denials
One of the most obvious signs of bad faith is receiving a settlement offer that is insultingly low and doesn’t come close to covering your losses. Insurers sometimes make these lowball offers hoping you’re desperate enough to accept anything. Another red flag is a swift denial of your claim without a thorough investigation or a clear, policy-based reason. Your insurer is required to conduct a proper review of the facts. If they deny your claim without explaining why or citing a specific exclusion in your policy, they are not upholding their end of the contract. These actions show a clear disregard for their legal obligations to you as a policyholder.
Your Pre-Lawsuit Checklist for a Delayed Claim
When your insurance company is dragging its feet, it’s easy to feel powerless. But before you consider a lawsuit, there are several practical steps you can take to protect your rights and build a strong case. Think of this as your action plan for holding the insurer accountable. By methodically documenting everything and formally requesting answers, you create a clear record of the company’s behavior. This organized approach not only shows the insurer you’re serious but also provides the critical evidence needed if you do decide to take legal action. These steps can sometimes resolve the issue on their own, but if they don’t, they lay the essential groundwork for a successful bad faith claim.
Keep a Detailed Record of Every Conversation
From this moment on, become a meticulous record-keeper. Every interaction with your insurance company is a piece of potential evidence. Start a dedicated notebook or a digital file to track every phone call, email, and letter. For calls, log the date, time, the name of the person you spoke with, and a summary of the conversation. Save all emails and written correspondence in one place. Be sure to note key dates, like when you first filed the claim and each time you submitted requested documents. This timeline is your most powerful tool for demonstrating an unreasonable delay and will be invaluable for your property insurance lawyer.
Put Your Questions in Writing
If phone calls are going nowhere, it’s time to create a paper trail. Sending a formal letter or a detailed email shifts the dynamic. It forces the insurance company to provide a written response and shows you are formally documenting the lack of progress. In your message, calmly state the facts: summarize the history of your claim, mention the delays you’ve experienced, and clearly ask for a status update. Request a specific reason for the delay and a clear timeline for when you can expect a decision. This simple act of putting your concerns in writing establishes a formal record and can often prompt a more serious response from the claims department.
Report the Issue to the State Insurance Board
Insurance companies are regulated by the state, and you have the right to file a complaint if you believe you’re being treated unfairly. In Texas, you can submit a complaint to the Texas Department of Insurance (TDI). The TDI will review your case and may contact the insurer on your behalf, which can sometimes get your claim moving again. While filing a complaint is a good step, keep in mind that the TDI’s role is regulatory; they cannot provide legal advice or force a specific payment. For complex disputes or clear signs of bad faith, an attorney’s guidance is essential to fully protect your financial interests.
Explore Mediation or Other Resolutions
Before heading to court, you might consider alternative dispute resolution (ADR), such as mediation. Mediation involves a neutral third-party professional who helps you and the insurance company try to reach a mutually agreeable settlement. It’s less formal and often faster and less expensive than a lawsuit. However, it’s still a structured negotiation where the insurance company will have its own legal representation. To ensure a level playing field, it’s crucial to have a skilled advocate like Tim Hoch on your side. An attorney can present your case effectively and advise you on whether any settlement offer is fair and reasonable.
Can You Sue Your Insurance Company for Taking Too Long?
Yes, you absolutely can sue your insurance company for taking too long to handle your claim. It’s one of the most frustrating experiences a policyholder can face. You’ve paid your premiums faithfully, and now, when you need them most, you’re met with silence or endless delays. The good news is that you have rights, and the law provides a path forward. Your insurance policy isn’t just a piece of paper; it’s a contract. When an insurer fails to process your claim in a reasonable timeframe, they may be breaking that contract and acting in “bad faith.”
State laws, especially here in Texas, set clear deadlines for how insurance companies must handle claims. These rules are in place to protect you from being left in limbo. An unreasonable delay isn’t just poor customer service—it can be a violation of the law. Understanding the difference between a legitimate delay and an act of bad faith is the first step toward holding your insurer accountable. If their stalling tactics are causing you financial harm or emotional distress, exploring your legal options is not just a possibility; it’s a necessary step to get the resolution you deserve.
Understanding “Bad Faith” in Your State
“Bad faith” is a legal term for when an insurance company acts unfairly or dishonestly while handling your claim. It’s more than just a slow response; it’s a failure to uphold their end of the bargain without a legitimate reason. This can look like intentionally delaying your claim, not conducting a proper investigation, or trying to lowball you with an unfair settlement offer. Essentially, if your insurer is putting its own financial interests ahead of its duty to you, it may be acting in bad faith. Proving this requires showing that their conduct was unreasonable, and a Fort Worth property insurance lawyer can help you gather the evidence needed to make that case.
Your Policy Is a Contract They Can’t Break
Think of your insurance policy as a promise—a legally binding contract between you and your insurer. You promise to pay your premiums, and in return, they promise to cover your losses according to the policy’s terms. A key part of that promise is the implied duty to handle your claim fairly and promptly. When an insurance company takes an unreasonably long time to make a decision or pay what they owe, they are failing to meet this obligation. This isn’t just an inconvenience; it can be considered a breach of contract. You held up your end of the deal, and you have every right to expect them to do the same.
Laws That Require Prompt Payment
Texas has specific laws in place to prevent insurance companies from dragging their feet. Under the Texas Prompt Payment of Claims Act, once an insurer receives all the information they need to evaluate your claim, they generally have 15 business days to accept or deny it. If they need more time, they must notify you and provide a reason. Once they accept your claim, they have just five business days to issue payment. These deadlines are not mere suggestions; they are legal requirements. If your insurer misses these timelines without a valid cause, they are violating state law, which gives you significant leverage.
How Consumer Protection Laws Can Help
When an insurance company violates prompt payment laws, consumer protection statutes provide powerful tools for holding them accountable. If your insurer fails to meet the legal deadlines without a reasonable basis, they can be forced to pay penalties, including interest on your claim amount and your attorney’s fees. If their delay is found to be an act of “bad faith,” the potential damages can be even greater. These laws are designed to level the playing field and ensure you aren’t left to bear the financial burden of an insurer’s misconduct. An experienced attorney like Tim Hoch can use these statutes to fight for the full compensation you are owed.
How to Prove Your Insurer Acted in Bad Faith
Suspecting your insurance company is acting in bad faith is one thing, but proving it requires a solid foundation of evidence. It’s not enough to feel that you’re being treated unfairly; you have to build a case that clearly demonstrates the insurer has failed to uphold its end of the contract. This means meticulously documenting every interaction and connecting the company’s delays to the real-world harm you’ve suffered. By organizing your evidence, you can shift the power dynamic and prepare to hold them accountable.
The Key Documents You’ll Need to Build Your Case
Your most powerful tool against an uncooperative insurer is a detailed paper trail. From the moment you file your claim, keep a comprehensive record of every interaction. This includes saving all emails and letters, and taking detailed notes during every phone call—write down the date, time, the name of the person you spoke with, and a summary of the conversation. Be sure to also track important dates, like when you first reported the damage and when you submitted requested documents. This timeline is crucial for establishing a pattern of unreasonable delay and showing you’ve been cooperative. A Fort Worth property insurance lawyer can use these records to build a strong foundation for your claim.
Show a Pattern of Delays and Evasion
A single missed deadline might be an honest mistake, but a consistent pattern of avoidance is a major red flag for bad faith. Insurance companies sometimes use delay tactics to wear you down, hoping you’ll eventually accept a lowball offer or abandon your claim altogether. Watch for behaviors like long periods of silence without any explanation, repeatedly asking for documents you’ve already sent, or transferring you to different adjusters who are unfamiliar with your case. When you document these instances, you’re not just recording isolated events; you’re building a compelling narrative of evasion that demonstrates the company isn’t handling your claim in good faith.
Connect Their Delay to Your Financial Losses
An insurer’s delay doesn’t just cause frustration—it can cause significant financial damage. To prove bad faith, you need to show how their inaction has directly cost you money. For example, if your home is uninhabitable after a storm and the insurer is dragging its feet, you might be paying for a hotel or rental out of pocket. If your business was damaged, you could be losing income every day the repairs are postponed. Keep receipts for all these extra expenses and records of any lost revenue. These documented financial losses are a critical part of your claim and can be recovered as damages when you prove the insurer acted in bad faith.
What It Takes to Meet the Burden of Proof
In a bad faith claim, the responsibility is on you—the policyholder—to prove the insurance company acted improperly. This is known as the “burden of proof.” Meeting this standard requires combining all the evidence you’ve gathered: your detailed communication log, the clear pattern of delays and evasive behavior, and the documented financial losses you’ve incurred as a result. Each piece of evidence strengthens the others, creating a powerful case that is difficult for the insurer to dismiss. Once you have this information organized, you’ll be in a much stronger position to fight for the full compensation you deserve. An experienced trial lawyer like Tim Hoch can help you present this evidence effectively.
What to Expect When You Sue Your Insurance Company
Deciding to sue your insurance company is a big step, and it’s natural to wonder what the process actually looks like. It’s not just about filing a single piece of paper; it’s a formal legal journey with distinct phases, potential rewards, and critical deadlines. Understanding these elements can help you feel more prepared and in control. From the initial filing to the final resolution, having a clear picture of the road ahead is the first step toward holding your insurer accountable and getting the compensation you deserve.
A Look at the Legal Process and Timeline
Once you file a lawsuit, you kick off a structured legal process. It begins with filing a formal complaint in court, which outlines your allegations against the insurer. From there, the case enters a “discovery” phase, where both sides exchange information, documents, and testimony. This is often the longest part of the process. Many cases are settled through negotiation or mediation during or after discovery. If a settlement can’t be reached, your case may proceed to trial. The entire timeline can vary significantly, from several months to over a year, depending on the complexity of your case and the court’s schedule. An experienced trial lawyer can guide you through each stage.
What You Could Win: From Damages to Attorney Fees
A successful lawsuit can help you recover much more than just the original amount of your claim. If you can prove the insurance company acted in bad faith, you may be entitled to additional damages for the financial and emotional stress their delays caused. In Texas, the law is on your side. Under the Texas Prompt Payment of Claims Act, if an insurer wrongfully denies or delays your claim, they could be forced to pay the full claim amount, an 18% annual interest penalty, and your attorney’s fees. This ensures that you aren’t left paying for legal help out of your own pocket simply to get what you were owed in the first place.
Don’t Miss the Deadline to File
One of the most critical things to know is that you have a limited window of time to take legal action. This is called the statute of limitations, and if you miss it, you lose your right to sue forever. In Texas, the deadlines can be tricky. You generally have two years to file a lawsuit for bad faith practices and four years for a breach of contract claim. The clock starts ticking from the date the insurer denies your claim or commits the bad faith act. Because these deadlines can be complex, it’s essential to speak with an attorney as soon as you suspect a problem to protect your legal rights.
The Costs and Risks of Taking Legal Action
It’s true that suing a large insurance company comes with challenges. They have extensive legal teams and resources, and their goal is often to wear you down with delays, hoping you’ll accept a lowball offer or give up. Proving that an insurer acted in “bad faith” is also a high bar; you must show they had no reasonable basis for delaying or denying your claim. However, you don’t have to face this fight alone or worry about upfront legal costs. At Hoch Law Firm, we handle property insurance disputes on a contingent fee basis. This means you pay us nothing unless we win your case.
Your Legal Options for a Delayed Insurance Claim
When your insurance company stalls, it can feel like you’re stuck with no good choices. The frustration builds with every unreturned call and vague email, leaving you to wonder if you’ll ever get the funds you need to repair your property or business. But you are not powerless in this situation. You have several strong legal options to get your claim moving and hold the insurer accountable for unreasonable delays. Your policy is a promise, and there are laws in place to make sure they keep it. It’s important to remember that you’ve paid your premiums faithfully, and you have a right to expect your insurer to act in good faith when you file a legitimate claim. When they don’t, the law provides you with tools to fight back. From filing a formal lawsuit to exploring more collaborative resolutions, understanding your rights is the first step toward getting the payment you deserve. Let’s walk through the main paths you can take to break the stalemate and fight for what you’re owed. Each option has its own process and potential outcomes, but all are designed to put pressure on the insurance company and get you the results you need.
File a Bad Faith Lawsuit to Recover Damages
If your insurer is delaying your claim without a valid reason, you can file a bad faith lawsuit. This isn’t just about getting your original claim paid; it’s about holding the company accountable for acting unfairly. Your insurance policy is a contract, and when they fail to uphold their end of the deal by creating unnecessary delays, they are acting in “bad faith.” A successful lawsuit can help you recover the money owed under your policy plus additional damages for financial losses, emotional distress, and even punitive damages designed to punish the insurer. It’s a significant step, but often the most effective way to fight back against a company that refuses to treat you fairly.
Consider Arbitration or Mediation
A courtroom isn’t your only option. Alternative dispute resolution (ADR) can be very effective for resolving insurance disputes without a full trial. In mediation, a neutral third party helps you and the insurer negotiate a settlement. In arbitration, a neutral party hears both sides and makes a binding decision. An experienced property insurance lawyer can represent you in these proceedings, presenting your case and advocating for a fair outcome. ADR is often a faster, more private, and less confrontational way to get the resolution you need, making it a practical alternative for many policyholders who want to avoid a lengthy court battle.
Use State Insurance Codes to Seek Penalties
Insurance companies don’t get to make their own rules. They must follow state laws, including strict deadlines for handling claims. In Texas, the Insurance Code has prompt payment laws that dictate how long an insurer has to acknowledge, investigate, and pay a claim. If they miss these deadlines without a reasonable cause, they can face serious penalties. These often include paying interest on the overdue claim and covering your attorney’s fees. This gives you powerful leverage, as the insurer knows an unjustified delay could cost them much more than the original claim. You can find more information on our Justice Blog.
Collect Interest on Late Payments
When an insurance company wrongfully delays your claim, the law recognizes you’ve been deprived of money that was rightfully yours. As a result, you are often entitled to collect interest on the claim amount for the period it was delayed. Think of it as compensation for the time you were forced to wait. Under Texas law, if an insurer violates prompt payment deadlines, they can be required to pay an 18% annual interest penalty on top of your claim amount. This isn’t a slap on the wrist; it’s a significant financial consequence that encourages insurers to pay on time and can add substantial value to your recovery.
When Is It Time to Call a Property Insurance Attorney?
If you’ve tried everything on your own and the insurance company still isn’t budging, you might feel stuck. It’s a frustrating position, but it’s also the point where professional legal help can make all the difference. You don’t have to accept endless delays or unfair treatment as the final word. An experienced attorney can step in to advocate for your rights and hold the insurer accountable. Knowing when to make that call is the first step toward getting the resolution you deserve.
Warning Signs You Need Legal Help Now
Trust your gut. If your interactions with the insurance company feel off, they probably are. It’s time to consider legal action if you notice clear red flags. Are they dragging their feet for months without a reasonable explanation? Have they made a settlement offer that is insultingly low and won’t cover your repairs? Maybe they’ve gone completely silent, ignoring your calls and emails. Other signs of bad faith include repeatedly asking for documents you’ve already submitted or misinterpreting the plain language of your policy to deny coverage. These aren’t just poor customer service—they are tactics that may require a legal response to resolve your property insurance dispute.
How a Lawyer Can Make Your Case Stronger
Fighting an insurance company on your own is an uphill battle. They have teams of lawyers and adjusters; you just have the facts. An attorney levels the playing field. They know exactly what evidence is needed to build a powerful case, from expert reports to internal company documents. A skilled lawyer can analyze the timeline and communications to prove the delay was unreasonable and harmful. They will handle the complex legal filings and negotiations, freeing you from the stress. Ultimately, having an experienced attorney on your side significantly increases your chances of recovering the full amount you are owed—often far more than the insurer initially offered.
Paying for Your Case: Understanding Contingent Fees
Many people hesitate to call a lawyer because they worry about the cost. That’s completely understandable, but most property insurance attorneys work on a contingent fee basis. This arrangement is designed to help people like you. It means you pay absolutely no upfront costs to get your case started. The law firm covers all the expenses of building and arguing your case. You only pay attorney’s fees if and when they win a settlement or verdict for you. The fee is simply a percentage of the money recovered. This approach removes the financial risk, allowing you to pursue justice without worrying about out-of-pocket expenses.
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Frequently Asked Questions
What’s the difference between a normal delay and an act of “bad faith”? A normal delay usually comes with a legitimate reason and clear communication from your insurer. For example, they might be waiting on an engineering report for a complex storm damage claim and they keep you updated on the progress. Bad faith, on the other hand, involves unreasonable delays without a valid explanation. It often feels intentional, marked by a pattern of ignored calls, lost paperwork, and a general refusal to give you a straight answer.
What if the insurance company blames the delay on a major storm or disaster? While it’s true that a major event like a hurricane or hail storm can lead to a high volume of claims, that doesn’t give an insurer a free pass to ignore their legal duties. They are still required to handle your claim within a reasonable timeframe and communicate with you about any necessary extensions. A widespread disaster is a valid reason for some delay, but it is not an excuse for months of silence or a complete failure to investigate your specific loss.
Will my insurance company cancel my policy if I hire a lawyer? It is illegal for an insurance company to retaliate against you for exercising your legal rights, which includes hiring an attorney to help with your claim. They cannot cancel your policy or raise your rates simply because you sought legal representation to get the fair treatment you’re entitled to. If you experience any form of retaliation after hiring a lawyer, that can become another basis for legal action against them.
I’ve been documenting everything, but what’s the single most important next step I can take on my own? If you’ve kept good records and are still being ignored, your most powerful next step is to send a formal, written demand letter. Put everything in an email or certified letter that outlines the history of your claim, the lack of response, and a clear request for a decision by a specific, reasonable date. This creates an undeniable paper trail and shows the insurer you are serious about enforcing your rights, which can often break the logjam.
How can I afford to hire a lawyer to fight a huge insurance company? This is a common and completely valid concern. Most reputable property insurance lawyers, including our firm, handle these cases on a contingent fee basis. This means you don’t pay any upfront costs or attorney’s fees. The law firm covers the expense of building your case, and we only get paid if we successfully recover money for you. The fee is a percentage of the final settlement or verdict, so there is no financial risk to you.
