This week we covered the story of the Louisiana Citizens Property Insurance Corporation (LCPIC), a state-run insurance company that is being sued for the underpayment of residential property claims following Hurricane Isaac. According to the bad faith insurance lawsuits, one claim was underpaid by a staggering $70,000 while another claim was underpaid by over $40,000. In both cases, families are struggling to repair their homes in the wake of the destructive storm. Allegedly, they are prohibited from doing so because of purposeful claim underpayment.
Unfortunately, this is not a new or uncommon story when it comes to residential property claims. Wrongfully denying claims altogether is sometimes too blatant a way for insurance companies to make unfair profits. But underpaying on claims is subtler and more insidious. Whether your insurance company is underpaying your claim by ten percent or two hundred percent, it is vital that you get the money you deserve after your property is damaged.
Why do insurance companies underpay claims?
- They don’t take a close look at the damage. Sometimes insurance companies may attempt to pay you the right amount. However, because the adjuster does not get an accurate idea of the damage, you get less money than you should.
- They misinterpret your insurance policy. Perhaps in their reading of your policy, some of your damage is covered by your contract but other damage is not. Be sure that you understand your policy completely if you believe that your insurance claim has been underpaid.
- Denied claims cause more trouble. Many people will fight a denied claim, especially when they know that the damage should be covered by their insurance policy. Fewer people will turn down money offered to them, even if they don’t think it is enough.
- Most people just take what is offered to them. If they believe that they can get away with paying out less than what they owe, why wouldn’t they?
What should you do if you believe your claim has been underpaid?
Call the Voss Law Firm today and tell us about your case. We can examine your insurance policy as well as the damage on your property in order to verify whether your claim may have been underpaid. If we believe that your insurance company has acted in bad faith, we can help you recover the full amount that you are owed. Schedule an appointment with a Texas residential claims attorney in our office today; call 888-614-7730.