Homeowners will have more trouble filing lawsuits against homeowners insurance companies
Homeowners in Texas may find it more difficult to file lawsuits against insurance companies for unpaid claims, due to a measured approved by the state Senate. The Senate has voted to approve a measure that is meant to address the issue of homeowners insurance lawsuits, which lawmakers believe are becoming a significant problem for the state. The Senate is divided on the issue, with lawmakers disagreeing on how it should be resolved, but the measure managed to pass despite relatively strong opposition.
Measure aims to reduce litigation against insurance companies rejecting claims
The measure addresses all lawsuits in general, but has a focus on lawsuits associated with hail and wind damage. Litigation concerning these types of damage has been growing more common in Texas, where many homeowners have claimed that their insurance providers have unjustly rejected claims. In many cases, hail and wind damage is not coverage by a conventional homeowners insurance policy, forcing consumers to purchase supplemental coverage in order to protect their properties from this kind of damage.
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Consumers may be pressured to pursue legal action by insurance adjusters and contractors
According to Senator Larry Taylor, some parts of the state are seeing litigation rates as high as 30%. The Senator claims that much of this litigation is not actually coming from consumers that are upset by how their claims have been handled, but rather by insurance adjusters and contractors that are soliciting such litigation. Consumers may be being pressured, though not coerced, into joining litigation efforts, being convinced that they could find some financial gain that will help them recover from disasters in the past.
Opponents claim that the measure is reducing consumer rights, offering the insurance industry protection it does not need
Opponents of the measure suggest that it will hamper legitimate litigation, where homeowners insurance companies would be held accountable for rejecting claims unfairly. Some lawmakers suggest that the measure is limiting the rights of consumers and that the measure is designed to protect the homeowners insurance industry rather than homeowners.