Hotel Owners File Bad Faith Hail Damage Insurance Claim

Nueces County Bad Faith Insurance Lawyers

Raizner Slania has filed bad faith hail damage insurance claims on behalf of two local hotel owners against Lexington Insurance Company and York Risk Services Group, Inc. after their hail damage claims were wrongfully denied.

March 2016 Hailstorm

On March 19, 2016, a severe wind and hail storm swept through Nueces County, Texas, causing significant damage to the roof, windows, exterior, and interior of the properties. Upon discovering the damages, the plaintiff immediately filed a commercial hail damage insurance claim with Lexington and asked that the cost of the repairs be covered pursuant to its policy.

In response to the claim, Lexington assigned adjusters, consultants, and agents to the plaintiff’s file that were inadequately and improperly trained. Specifically, Lexington assigned the claim to York Risk Services, who in turn assigned the claim to an employee.

York and the employee failed to perform a thorough investigation of the damages. After visiting the properties, the employee did not prepare any estimates or scopes of damages and/or failed to provide them to the plaintiff. In addition, the employee failed to hire any qualified experts to inspect the damage and failed to communicate with the insured throughout the claims process.

Lexington relied solely on York and its employee’s substandard investigation to determine what amounts, if any, to pay on the claim. As a result of the employee’s inadequate, incomplete, and unreasonable investigation, Lexington wrongfully denied and grossly underpaid the plaintiff’s claim.

Lexington wrongly represented the damages were not covered under the policy, when in fact they were; and, Lexington continues to deny timely payment to cover the property damage. Lexington’s refusal to pay has caused the plaintiff to suffer significant economic impact, worry, distress, and continuing economic and physical damages. The plaintiff has been unable to make the necessary repairs to the properties, causing additional damage to the interiors, roofs, and other parts of the properties.

Lexington Violated The Texas Insurance Code

The plaintiff cites numerous violations of the Texas Insurance Code, including failure to effectuate a prompt, fair, and equitable settlement of a claim, failure to pay a claim without conducting a reasonable investigation, and misrepresentation of the insurance policy under which it affords property coverage to plaintiff.

Nueces County Bad Faith Insurance Lawyers

If your insurance company wrongfully denied, delayed, or underpaid your commercial hail damage insurance claim, the experienced Nueces County bad faith insurance lawyers at Raizner Slania can help. Call us today to learn your legal options.

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