LAWYERS URGE STORM VICTIMS TO QUICKLY FILE ‘HARVEY’ CLAIMS
Attorneys are urging homeowners to file claims for property damage inflicted by Hurricane Harvey before Friday, when a new insurance law goes into effect.
The new law requires plaintiffs' attorneys to offer more detail when they give notice of intent to file a lawsuit. If insurance companies must pay damages, the law will reduce the amount of penalty interest they'll owe from 18% to about 10%.
The law will impact policyholders who file a lawsuit against their insurance company.
Supporters claim the legislation will reduce the amount of frivolous lawsuits filed on behalf of policyholders against their insurance companies. Opponents argue that it weakens consumer rights.
Attorney Craig Eiland, a member of the Texas Trial Lawyers Association, said that property owners who submit insurance claims before Friday will be able to increase the amount of damages they receive if they file and win a lawsuit against their insurance company in the future.
Texas Congressman Joaquin Castro also urged Texans "to file for Harvey relief before Sept 1." He said the Texas legislature had "passed a bill making it harder to dispute weather-related property claims."
But supporters of the new law argue that some lawyers take advantage of policy holders by encouraging them to file frivolous suits against insurance companies.
Setting the Record Straight on Claims Filing Misinformation
There has been and continues to be incorrect information relating to your insureds’ rights and obligations under their current policies and reporting of claims. If these posts were intended to alarm and confuse the public, then those involved have achieved their goal.
The Facts
•The normal claims process has not changed.
•Consumers continue to have a full-range of remedies in the event an insurer acts fraudulently or in bad faith.
•Lawsuit-abuse legislation (HB 1774) applies to lawsuits filed after September 1, 2017.
•The Texas Department of Insurance will, as always, in catastrophic events, be monitoring the activities of insurance companies to make sure that claims are being paid properly and promptly.
•Texas has the strongest consumer protections in the nation against insurers that unfairly deny or delay claims.
This was a House Bill from the Speaker Joe Straus, not Lt Gov.
Why would Joe Strauss need money out of anybody’s pockets, insurance lobbyist or otherwise? He’s rich.
This is very good advice. Insurance lobby pushed this through. They had the hands (and money) in Lt. Gov.’s back pocket. It only hurts consumers (I.e. Insureds).