Raizner Slania Sues Underwriters at Lloyds of London for Violations of the Texas Insurance Code and Related Laws Following Major Water Loss to a Supermarket

Raizner Slania LLP has initiated suit against Certain Underwriters at Lloyds, London (“Underwriters”) for mishandling Plaintiff’s insurance claim following extensive water damage at a Houston area supermarket.

The owners of the food market were sold a commercial insurance policy by Underwriters which provided coverage for damages to business property and lost business income caused by “accidental water discharge.”  On May 25, 2014, there was a sudden discharge of water from the facility’s subsurface fire sprinkler system which caused substantial damages including loss of nearly 1 million dollars in inventory. Immediately, Plaintiff filed an insurance claim under the policy believing the claim would be handled pursuant to policy terms and benefits.

Underwriters responded by assigning an improperly trained adjuster to the case. Lloyds and its adjusters violated the Texas Insurance Code by failing to conduct an adequate investigation of damages caused by the water and by refusing to acknowledge any damages to inventory. Underwriters falsely misrepresented the terms of its policy in a denial letter by stating that “Food Spoilage” was not covered. Given that the business is a supermarket, the basis for the insurer’s denial was unfounded..

After delaying the claims process, on September 19, 2014, Underwriters declined to continue evaluating the claim and refused to issue any payments under the Policy. The insurance company violated its responsibilities under Texas law by choosing to delay and deny timely payment even after liability was clear. The repeated delays of payment have caused our client significant economic impact, worry, distress, and continuing economic and physical damage.

If you believe you’ve experienced improper delay or denials of a Texas commercial property insurance claim, contact Raizner Slania LLP today for a free consultation.

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