USAA Files of Increase in Homeowners Insurance Rates

Posted on January 26, 2009 by Houston Personal Injury Attorney

USAA files for an increase in homeowners insurance rates stating increased frequency in catastrophic events and, therefore, increased claims and construction costs necessitate a rate increase.

On October 10th, USAA proposed to increase homeowners insurance rates across Texas by an average of 7.6 percent. Stuart Parker, president of USAA Property and Casualty Insurance Group, told the Houston Chronicle that after lowering rates 5 times in the last 6 years, "increasing claims and construction costs, along with projected catastrophe losses require [them] to raise rates now so [they] can meet the future needs of [their] Texas membership." Harris County, a high-risk costal area, is expected to be hit hard by this with an average rate increase of 20.9 percent for more than 30,000 residents.

By Texas law, rates must be just, fair, reasonable, and adequate, cannot be excessive for the risks to which the rate applies and cannot be discriminatory. Rates are considered excessive if the rate is likely to produce a long-term profit that is unreasonably high in relation to the insurance coverage provided and discriminatory if they are not based on sound actuarial principles or do not bear a reasonable relationship to the expected loss.

Insurance Litigation

Insurance litigation against big insurance companies can be frustrating and intimidating. At Arnold & Itkin LLP, our attorneys have years of experience and expertise litigating successful insurance malpractice lawsuits against some of the biggest insurance companies in the nation.

If an insurance company has treated you or a loved one unfairly, contact a Houston insurance attorney at Arnold & Itkin LLP for a free consultation.

 

 

 
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Jefferson County Couple Files Hurricane Insurance Lawsuit Against Texas Farmers Insurance

Posted on January 16, 2009 by Houston Personal Injury Attorney

Texas Farmers Insurance has been accused of unfair practices in a hurricane insurance claims lawsuit filed by a Jefferson County couple as a result of supposed unethical practices to deny claims.

John and Tammie Burden's home in Beaumont, Texas suffered extensive property damage during Hurricane Humberto on September 13, 2007. The destruction included structural damage as well as interior and roof damage caused by rain and flooding. The Burdens, like many other policy holders filed claims with their insurer, Texas Farmers Insurance. They were shocked when the insurer, after sending eight adjusters to assess the damage, told them the property damage was not included in their policy.

The Burdens have now filed a lawsuit alleging Texas Farmer Insurance committed a breach of contract in refusing to pay out the claim.  The lawsuit also names the 8 adjusters involved. As stated in the lawsuit, the company also failed to deny or affirm the claim within a reasonable period of time and failed to explain why the Burdens' claim was denied.

Insurance companies have continuously avoided, delayed, and denied claims payouts for years now, but this matter has recently received special attention, as several devastating hurricanes, including Katrina and Rita inflicted serious damage along the Gulf Coast. In the aftermath of Katrina, some of the country's biggest insurance companies were found to have indulged in unethical practices including: forcing desperate policy holders to settle for less than was agreed upon per the contract. However, Texas insurance laws favor the policyholder, protecting them from: misrepresentation of facts, breach of contract, aggressive practice, and unfair claims adjustments, among other things. Insurers are required to accept or deny claims within a stipulated period of time and, if they intend to deny a claim, must notify the policyholder of the reason for denying the claim. If the insurer is unable to determine whether a claim will be denied or approved they must inform the policyholder of their need for additional time. After the extension, the insurer is required to make a decision about the claim within 45 days.

Pursuing a Hurricane Insurance Claim

Pursuing hurricane insurance litigation requires the expertise of an insurance attorney who is experienced in taking on big name insurance companies. The attorneys at Arnold & Itkin LLP have years of expertise pursing claims against major insurance companies on behalf of policyholders. 

Contact a Texas insurance lawyer at Arnold & Itkin LLP for a free evaluation of your case.

 

 

 

 
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