Name: Raizner Slania LLP
Address: 2402 Dunlavy St Suite 300, Houston, TX, 77006, US
Telephone: 844-554-9099
Price range: Let Our Team Help You

Owning and operating a multi-family apartment building is a big investment that comes with a lot of risks. Damage from an unforeseen event or natural disaster can be incredibly costly for condominiums and apartment complexes. Managing such damage can be overwhelming, as not only the property owner but also the tenants that live in the property are impacted. When these unfortunate instances happen, it is in the best interest of the commercial property owner to file an insurance claim and begin making temporary repairs as soon as possible. However, insurers may be quick to deny, delay, or vastly underpay valid claims – often leading to the need for the policyholder to file a lawsuit to recover what they are rightfully owed.

When a severe weather event, natural disaster, or an unexpected act of vandalism impacts the property of a multi-family apartment owner, it’s often not just the damage itself they have to deal with. Lost rental revenue from uninhabitable apartment units and unusable areas can also trigger the need for a business interruption claim to be filed. The complex will also incur the costs of temporary repairs and the costs associated with the temporary displacement of tenants.

It’s not uncommon to assume an insurance company is acting in the best interests of the policyholder. Unfortunately, in many cases, this is far from the truth. Insurers routinely look for ways they can tilt the claims process toward their own benefit in order to increase profits. One way this occurs is when carriers blame the covered damage on wear and tear, or anything not covered by the policy. By unjustly denying claims, insurers are not only not living up to their legal obligations under the commercial property policy, but they are also in direct violation of the rights of the policyholder by failing to abide by their duty to promptly pay valid claims as soon as it is reasonably clear the damage is covered.

At Raizner Slania, we’ve successfully handled multiple lawsuits against some of the top insurance companies in the world. We know the variety of ways insurers attempt to neglect their responsibilities under a legally binding insurance policy to try and force policyholders to accept a low-ball settlement offer.

Some of the notable lawsuits our law firm has filed on behalf of multi-family apartment owners include the following cases:

Hail Damage Lawsuit Against Peleus Insurance Company, et al.
Insurance Lawsuit Against AmRisc LLC, CRC Insurance Services Inc., et al.
Insurance Lawsuit Against AmRisc LLC, Certain Underwriters at Lloyd’s London, et al.
Hail Damage Lawsuit Against Westchester Surplus Lines Insurance Company and Engle Martin & Associates, Inc
Hail Damage Lawsuit Against Houston Casualty Company, QBE Insurance Corporation, et al.
Bad Faith Insurance Lawsuit Against Ted W. Allen & Associates, Inc.
Insurance Lawsuit Against AmRisc LLC, Certain Underwriters at Lloyd’s London, et al.
Hail Damage Lawsuit Against Aspen Specialty Insurance Company, Chubb Custom Insurance Company, et al.
Wind and Hail Damage Lawsuit Against Peleus Insurance Company and Engle Martin & Associates, Inc.
Hurricane Harvey Wind Damage Lawsuit Against AmRisc LLC, Certain Underwriters at Lloyd’s London, et al.
Hail Damage Lawsuit Against AmRisc, LLC, Certain Underwriters of Lloyd’s of London, Indian Harbor Insurance Company, et al.
Fire Damage Lawsuit Against Certain Underwriters at Lloyd’s London, QBE Specialty Insurance Company, et al.

Hail Damage Lawsuit Against Peleus Insurance Company, Strata Claims Management, LLC, and Engle Martin & Associates, Inc

Raizner Slania filed a hail damage insurance lawsuit on behalf of a Dallas County apartment owner against Peleus Insurance Company, Strata Claims Management, LLC, and Engle Martin & Associates, Inc. after its insurance claim was wrongfully denied. On March 17, 2016, a wind and hailstorm swept through north Texas, causing substantial damage to the roofs, HVAC, exteriors, and interiors of the apartment complex property. Upon discovering the damage, the plaintiff filed an insurance claim with Peleus. In response to the claim, Peleus assigned adjusters, consultants, and agents to the plaintiff’s file that were inadequately and improperly trained.

Specifically, Peleus assigned the claim to both Strata and Engle Martin. In turn, both Strata and Engle Martin assigned the claim to claims representatives. Peleus, Strata, Engle Martin, and their representatives failed to perform a thorough investigation of the claim. As a result of the haphazard inspections and investigation, Peleus wrongfully denied the plaintiff’s hail damage insurance claim. Peleus failed to perform a thorough investigation of the claim and the plaintiff has been unable to make the necessary repairs, causing additional property damage.

Insurance Lawsuit on Behalf of a Harris County Apartment Complex Against AmRisc LLC, CRC Insurance Services Inc., and Highpoint Insurance Group LLC

Highpoint was plaintiff’s insurance agent. It sought coverage for the plaintiff’s property, and ultimately obtained a quote from AmRisc. AmRisc is believed to have connected with CRC, a wholesale broker for insurance companies, to obtain a policy for the plaintiff. The policy was ultimately bound, with property coverage provided by several different insurers. On August 27, 2017, Hurricane Harvey struck the plaintiff’s property, causing significant damage to the apartment complex. Two days following the hurricane, the plaintiff filed an insurance claim with its agent Highpoint.

Nearly a year passed without any substantive progress and zero payment on the plaintiff’s claim. Raizner Slania sent a demand letter to the insurance carriers, who responded through counsel. Much to the plaintiff’s surprise, the carriers demanded arbitration, citing an arbitration clause within the plaintiff’s policy. AmRisc never disclosed the existence of the Arbitration Clause and it was not disclosed in the detailed quotation AmRisc provided to plaintiff’s agent in May of 2017. It was not part of the package AmRisc required Plaintiff to sign in order to bind coverage and it was not part of a confirmation sent by CRC. Simply, the plaintiff never agreed to the arbitration clause.

Insurance Lawsuit Against AmRisc LLC, Certain Underwriters at Lloyd’s London, QBE Specialty Insurance Company, Lexington Insurance Company, International Insurance Company of Hannover SE, Indian Harbor Insurance Company, Steadfast Insurance Company, United Specialty Insurance Company, Safety Specialty Insurance Company, and Old Republic Union Insurance Company

On or about April 18, 2019, the plaintiff’s property was damaged following a windstorm, including damage to complex’s structure and building elements like the roof system, interior, exterior, and more. Upon discovering the damage, the plaintiff filed an insurance claim with the Carriers and asked that the cost of repairs be covered pursuant to the policy. The complex’s own consultant further identified dramatic damage that ruined parts of the building’s roof.

The Carriers insure the property, and through AmRisc assigned adjusters, consultants, and agents to the plaintiff’s file that were inadequately and improperly trained. Specifically, the carriers delegated to AmRisc the job of assigning the claims to CJW and Sedgwick as third-party adjusting firms. After an unreasonable and pretextual investigation of the property, Mr. Sohaib recommended an underpayment of the full scope of covered damages; thus, the plaintiff’s claim for windstorm damage was wrongfully delayed and underpaid.

Hail Damage Lawsuit on Behalf of a Harris County Apartment Complex Against Westchester Surplus Lines Insurance Company and Engle Martin & Associates, Inc

On May 28, 2014, a hail storm swept through Harris county, causing substantial damage to the exteriors, interiors, roof, HVAC, and other structures on the plaintiff’s property. Immediately upon discovering the damage, the plaintiff filed an insurance claim for the damage caused by the storm. A second wind and hail storm struck the plaintiff’s property on April 19, 2015, causing further damage. Again, the plaintiff immediately filed an insurance claim asking the damages be covered pursuant to its policy. In response to the claims, Westchester hired adjusters, consultants, and agents that were inadequate and improperly trained.

Engle Martin and its internal adjuster refused to engage competent consultants to evaluate the damage and chose to ignore submissions from forensic weather consultants confirming the covered wind and hailstorms in question at the subject location. As a result of the haphazard investigation, Westchester wrongfully denied and delayed payments for property repairs. Westchester grossly underestimated the damages to the property and incorrectly claimed the damages fall under the policy deductible. Our client cited numerous violations of the Texas Insurance Code, including failure to effectuate a prompt, fair, and equitable settlement of a claim, failure to implement reasonable standards for the investigation of a claim, and refusal to pay a claim without conducting a reasonable investigation.

Hail Damage Lawsuit Against Houston Casualty Company, QBE Insurance Corporation, Aspen Specialty Insurance Company, Hiscox Incorporated, Westchester Surplus Lines Insurance Company, Underwriters at Lloyd’s London, Internal Insurance Company of Hanover SE, Alterra Excess & Surplus Insurance Company, Interstate Fire & Casualty Company, RSUI Indemnity Company, and Engle Martin & Associates, Inc

On December 27, 2015 and again on May 10, 2016, a hail storm swept through Hurst, Texas and caused significant damage to the plaintiff’s property. The hail storm caused extensive damage to the apartment complex’s roof that was so extensive large sections of shingles were missing from the roof systems. In response to the damage, the plaintiff has made numerous repairs to the roof and tarped large sections of the roof to mitigate damages. Unfortunately, the interior damages continue because of roof leaks due to the insurers’ low ball estimate and failure to pay the claim. Upon discovering the damage, the plaintiff filed an insurance claim with the insurers. In response to the claim, the insurers assigned the claim to Engle Martin who in turn assigned the claim to internal adjusters.

The adjusters were improperly trained and failed to perform a thorough investigation of the claim, spending an inadequate amount of time inspecting the plaintiff’s property. The damages the adjuster included in the report were grossly undervalued and did not allow for adequate funds to cover the cost of repairs for all damages sustained. The adjusters failed to perform any of the industry standard tests for hail and wind damage during their inspections. For example, the adjusters neither conducted test squares nor did the adjusters perform brittleness tests. As a result of the mishandling of the plaintiff’s claim, the plaintiff has experienced a delay in fully repairing the property, which caused additional damages.

Bad Faith Insurance Lawsuit Against Ted W. Allen & Associates, Inc.

On December 10, 2016, a catastrophic fire broke out on the plaintiff’s property. As a result, the exterior, interior, roof, ceiling, and other structures of the property were damaged. Soon after the fire, the plaintiff filed a claim under its commercial insurance policy to cover the cost of repairing the property damage. In response to the claim, the insurance company denied large portions of damages for which the coverage should have been secured. Instead of the coverage being extended as requested, the insurance carrier applied stringent limits concerning the covered damages to the property, including lost rents.

Allen & Associates was the agency that sold the policy to the plaintiff. The agency failed to secure the requested building coverage requested by the plaintiff, and failed to remove references to the per-building limits despite clear requests from the plaintiff. Because of Allen & Associates’ failures and misrepresentation, the plaintiff suffered significant financial harm and damage.

Insurance Lawsuit on Behalf of a Harris County Apartment Complex Owner Against AmRisc LLC, Certain Underwriters at Lloyd’s London, Indian Harbor Insurance Company, QBE Specialty Insurance Company, Steadfast Insurance Company, General Security Indemnity Company of Arizona, United Specialty Insurance Company, Lexington Insurance Company, Princeton Excess & Surplus Lines Insurance Company, and International Insurance Company of Hannover

On January 20, 2017, a windstorm ripped through Harris County. The windstorm caused significant damage to our client’s apartment complex, including damage to building components like light fixtures, windows, drywall, flooring, and the roofing system. Immediately upon discovering the damage, the plaintiff filed an insurance claim and asked that the cost of repairs be covered pursuant to the policy. The insurance carriers, through AmRisc, assigned adjusters, consultants, and agents to the plaintiff’s file that were inadequate and improperly trained. Specifically, the claim was delegated to AmRisc to assign the claims to Vericlaim as the third party adjusting firm to handle the claims.

Vericlaim, in turn, assigned the claim to an internal adjuster. The internal adjuster was assigned as the adjuster with decision-making authority over the plaintiff’s claim under the policy. Vericlaim and the internal adjuster conducted an unreasonable and inadequate investigation of the property and wrongfully denied any windstorm damage. Despite clear evidence to the contrary, Vericlaim and its internal adjuster claimed the damages were not storm-related, and instead were a result of normal wear and tear, deferred maintenance, construction deficiencies, and other excuses. The carriers engaged in and ratified this improper claims conduct and ultimately approved a gross underpayment of the contractual damages. This underpayment omitted important facts, physical evidence, and meteorological data supporting the plaintiff’s claim.

Hail Damage Lawsuit Against Aspen Specialty Insurance Company, Chubb Custom Insurance Company, Lloyds of London, and Vericlaim Inc.

On August 28, 2014, a hailstorm caused significant property damage in Lubbock, Texas, including damage to the plaintiffs’ roof, exteriors, HVAC, and other structures on the property. Upon discovering the damage, plaintiffs immediately filed insurance claims under their policies with the insurance carriers for damages caused by the hail.

The insurance carriers assigned adjusters, consultants, and agents to the commercial property hailstorm damage claim. Specifically, they assigned Vericlaim Inc., who in turn assigned an adjuster to inspect the damage. Our client alleges that the adjuster performed substandard inspections of the property and failed to prepare any estimates of the damage. Our client’s representatives pointed out obvious damages to the adjuster, but they were ignored. Our client was then forced to demand a re-inspection of the property several times. In response, the adjuster hired a consultant who is not licensed with the Texas Department of Insurance to estimate repairs on the property. This unlicensed consultant grossly underestimated the extent and the value of the hailstorm damage.

Wind and Hail Damage Lawsuit Against Peleus Insurance Company and Engle Martin & Associates, Inc.

On March 17, 2016, a severe wind and hailstorm swept through Dallas County and caused significant damage to the roof, exterior, and interior of plaintiff’s property. Immediately upon discovering the damage, the plaintiff filed a commercial property damage insurance claim with Peleus for damages caused by the storm. In response to the claim, Peleus assigned inadequately trained adjusters, consultants, and agents to the plaintiff’s file. Specifically, Peleus assigned the claim to Engle Martin. Engle Martin failed to perform a thorough inspection of the property and grossly underestimated the extent and value of damages to the property. Engle Martin refused to hire any Texas-licensed and qualified engineers or other experts to properly assess the commercial property damage.

Engle Martin performed an inadequate, incomplete, and unreasonable investigation of plaintiff’s claim, evidenced by delays, lack of communication, refusal to hire to appropriate consultants, and an estimate that fails to account for the necessary repairs to the property. As a result of the haphazard investigation, Peleus wrongfully underpaid and denied large portions of plaintiff’s claims for property repairs. Peleus also underestimated the damages it did accept during the investigation.

Hurricane Harvey Wind Damage Lawsuit Against AmRisc LLC, Certain Underwriters at Lloyd’s London, Indian Harbor Insurance Company, QBE Specialty Insurance Company, Steadfast Insurance Company, General Security Indemnity Company of Arizona, United Specialty Insurance Company, Lexington Insurance Company, and the International Insurance Company of Hannover SE.

The insurance carriers, through the program design and management of AmRisc, sold a commercial property policy the plaintiff whereby the carriers would provide insurance coverage for the property. On August 26, 2018, Hurricane Harvey reached Houston and caused devastating damage. Hurricane Harvey damaged the roofing system, drywall, flooring, and other parts of the property. Immediately upon discovering the damage, the plaintiff filed a claim with the carriers and asked the cost of repairs be covered pursuant to the policy.

The insurance carriers, through AmRisc, assigned adjusters, consultants, and agents to the plaintiff’s file that were inadequate and improperly trained. Specifically, AmRisc, on behalf of all carriers, assigned the claims to a third party adjusting firm. In turn, the third party adjusting firm assigned the claim to its internal adjuster. The internal adjuster conducted an unreasonable and inadequate investigation. The claim process, inspections, and results were continuously delayed starting the day the claim was made. The carriers, Amrisc, and their agents reassigned the claim to different adjusters, refused to provide the insured with answers, ignored obvious damages at the property, and misrepresented policy benefits, all while the property sat in disrepair and they refused to issue any payments whatsoever.

Hail Damage Lawsuit Against AmRisc, LLC, Certain Underwriters of Lloyd’s of London, Indian Harbor Insurance Company, QBE Specialty Insurance Company, Steadfast Insurance Company, General Security Indemnity Company of Arizona, United Specialty Insurance Company, Lexington Insurance Company, Princeton Excess and Surplus Lines Company, International Insurance Company of Hannover, and Vericlaim, Inc.

On January 28, 2016, a severe wind and hailstorm swept through Harris County, causing substantial damage to the local apartment complexes. As a result, the exteriors, roofs, building interiors, HVAC units, and other structures of the properties were damaged. Immediately upon discovering the damages, the plaintiffs filed insurance claims under their policy with various carriers to cover the cost of repairs.

Underwriters of Lloyd’s, Indian Harbor, QBE, Steadfast, General Security Indemnity, United Specialty Insurance, Lexington, Princeton and the International Insurance Company of Hannover were the carriers on the policy. AmRisc was the program manager and it packaged a number of similar properties into the substandard insurance program at issue in the case. In response to the claim, the carriers assigned the claim to Vericlaim, who in turn assigned the claim to an internal adjuster. The internal adjuster assigned unqualified and biased consultants to the claim and failed to do his own investigation of damages to the properties. The carriers relied on Vericlaim’s incomplete and inadequate investigation to determine what amounts, if any, to pay on the claim. As a result, no payments have been issued under the policy.

Fire Damage Lawsuit Against Certain Underwriters at Lloyd’s London, QBE Specialty Insurance Company, General Security Indemnity Company of Arizona, Lexington Insurance Company, International Insurance Company of Hannover, PLC, Indian Harbor Insurance Company, Steadfast Insurance Company, United Specialty Insurance Company, Princeton Excess & Surplus Lines Insurance Company, and Amrisc, LLC

On November 12, 2017, a fire substantially damaged the plaintiff’s apartment complex property. As a result, the damaged building components include light fixtures, windows, drywall, flooring, HVACs, and the roofing system of the property, among other items. Upon discovering the damage, the plaintiff filed an insurance claim under its policy with the carriers for damages to the property caused by the fire. The plaintiff asked that the cost of repairs be covered pursuant to the policy.

The insurance carriers, through AmRisc, assigned adjusters, consultants, and agents to the plaintiff’s file that were inadequate and improperly trained. Specifically, the claim was assigned to a third party adjusting firm who in turn assigned the claim to its internal adjuster. The internal adjuster conducted an unreasonable and inadequate investigation and denied the claim for fire damage to property.

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Multi-Family Apartment: Lawsuits Filed

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