Pending Hail Legislation has Texas Insurance Industry on Edge

By Denise Johnson | May 1, 2017

  • May 3, 2017 at 3:40 pm
    Truth says:
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    I have noticed a trend by insurance companies to change their coverage for roof damage from R/C to ACV by endorsement on the standard HO form. Unless the insured reads every word in the HO form (which is NOT going to happen)they are in for a surprise if they have a roof claim.
    This will appear to a jury as if a company is trying to avoid paying claims.

    • June 19, 2017 at 11:10 am
      DoYourJob says:
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      The trend is there because the insurance company would like to honor the request for Special/RC on a 30 year old building with everything updated except a 15 year old roof – Rather than offer Basic/ACV on the whole thing. Endorsements allow flexibility. And, in my opinion, it would be the responsibility of the licensed retail agent to review those forms with the insured so they were aware of the difference.

  • May 4, 2017 at 5:40 pm
    Justin Petty says:
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    I find it curious that there is a complaint of not getting notice before a suit is filed. I call BS on that statement. If they didn’t get notice, they can claim an affirmative defense and require their insured to go through the appraisal clause.

    I think the reason for more lawsuits is that insurance adjusters lack proper training, and they don’t care if they pay a claim properly or not, they just want it off their desk and assume that most people will not be able to find an attorney or sue. They like to just say no and then scream and yell that they didn’t get a chance to try to settle the claim. Nope. I hope there is legislation that requires insurance companies to teach adjusters how to properly evaluate the cost of repairs and how to evaluate the value of property accurately. This is the problem, ignorance by insurance staff adjusters.

  • May 8, 2017 at 10:33 am
    Justine Pretty says:
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    @ Justin Petty

    You shouldn’t be concerned about this bill if you think that insurers are already receiving proper notice, and have a chance to settle the claim, before the suit is filed. The bill will simply formalize the matter and provide a blue print for notice/ settlement/ suit.



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