Raizner Law has filed a Hurricane Harvey insurance lawsuit on behalf of a Padre Island, Texas hotel owner against Greenhill Group LLC, First Specialty Insurance Corporation, Evanston Insurance Company, and Scottsdale Insurance Company. Our client alleges its Hurricane Harvey insurance claim was wrongfully denied under Texas law.
Our client owns a six-story hotel situated on 126,354 square feet of land with 79,810 square feet of interior space. The building is a well-known hotel and conference facility in the Corpus Christi area, and it contains guest rooms, meeting/reception areas, office space, a fitness area, laundry facilities, a restaurant and bar, and kitchen facilities.
On August 25, 2017, Hurricane Harvey, recognized as one of the most devastating natural disasters in United States history, made landfall on the Texas coast in San Patricio County and Aransas County as a Category 4 hurricane. Wind gusts of up to 132 miles per hour were reported in the same area as the property. As a result of Harvey’s extreme winds and rain when it hit Nueces County and specifically the property, the hotel suffered substantial damage. Sizeable portions of the property’s roof were compromised by wind, which in turn caused damage to the interior of the property, electrical components, ceilings, flooring, and HVAC.
Immediately upon discovering the damage, the plaintiff filed insurance claims with the carriers. As the primary insurer on the property, First Specialty took the lead during the claims handling process; however, its claims-handling process resulted in wrongful denials and gross underpayments that omitted a wealth of facts, physical evidence, obvious wind damages, and meteorological data from Hurricane Harvey supporting the plaintiff’s claim. First Specialty unreasonably pinned the loss on anything but the wind, an action designed to save the insurance company and the other carriers millions of dollars in damages to the property and the business.
Specifically, First Specialty assigned unqualified consultants and adjusters to handle the claim and ignored damages the adjusters initially accepted. First Specialty retained a preferred vendor to handle the initial adjustment. After an inspection on September 13, 2017, First Specialty’s adjuster verbally confirmed coverage and damages of millions of dollars to the building structure alone; however, those amounts were never paid. Rather, First Specialty sent additional consultants out in order to minimize the claim payout to the plaintiff. On September 20, 2017, additional adjusters were sent to the property and admitted they personally observed substantial Hurricane Harvey wind damage.
Acting with authority on behalf of the carriers, the adjusters conceded that millions of dollars were owed on the claim and verbally offered an undisputed amount to pay the insured’s claim. Despite this legally binding agreement, the carriers reneged on their promise, and continued to delay the claim until its partial denial in May 2018. To this day, the plaintiff has not been properly paid for property damage, and has suffered significant economic hardship not only in the cost of repairs but also in lost business income.
Violations of the Texas Insurance Code
Our client cites numerous violations of the Texas Insurance Code, including failure to promptly provide a reasonable explanation for the denial of a claim and misrepresenting the terms of the policy under which it affords property coverage to the plaintiff. Our client also claims the carriers violated the Texas Deceptive Trade Practice Act.
Fighting For Hurricane Harvey Victims
It’s a shame that Hurricane Harvey victims have to fight so hard for the compensation they are rightly entitled to under their insurance policies. Raizner Law is helping Hurricane Harvey victims with bad faith insurance claims. If your Hurricane Harvey insurance claim has been denied or underpaid, contact us today for a free consultation to discuss your case.