Dallas Insurance Bad Faith Lawyer | Varghese Summersett

When you pay your premiums on time and file a legitimate claim, you expect your insurance company to honor its commitment. Instead, they delay payment, deny your claim without a valid reason, or offer a settlement that does not come close to covering your damages. This is called insurance bad faith, and it can leave you financially devastated at the worst possible time.

If your insurer is refusing to pay what you are owed, you are not powerless. Texas law protects policyholders from unfair insurance practices and allows you to take legal action when your insurance company breaches its duty to you.

At Varghese Summersett, our Dallas insurance bad faith lawyers fight for people who have been mistreated by insurance companies. We hold insurers accountable and pursue the full compensation you deserve.

What Is Insurance Bad Faith?

Insurance bad faith occurs when an insurance company fails to act in good faith toward its policyholder. Every insurance contract includes an implied duty of good faith and fair dealing. This means the insurer must investigate claims promptly, communicate honestly, and pay valid claims without unnecessary delay.

When an insurer violates this duty, it can be held liable for bad faith. This can happen with any type of insurance policy, including auto insurance, homeowners insurance, health insurance, life insurance, or business insurance.

Common Examples of Insurance Bad Faith

Insurance bad faith can take many forms. Some of the most common examples include denying a valid claim without conducting a proper investigation, delaying payment for months or even years without justification, and offering far less than what the claim is worth in hopes you will accept a lowball settlement. Insurers may also misrepresent policy language to avoid paying, fail to communicate or respond to your inquiries, or request unnecessary documentation repeatedly to stall your claim.

In some cases, insurers refuse to defend you in a liability lawsuit even though your policy covers the claim. They may also change their explanation for denying your claim multiple times or fail to provide a clear reason for the denial.

What Texas Law Says About Insurance Bad Faith

Texas law requires insurance companies to act fairly and in good faith when handling claims. Under Texas Insurance Code § 541.060, it is an unfair or deceptive act for an insurer to misrepresent policy provisions, fail to acknowledge communications, or refuse to pay claims without conducting a reasonable investigation.

If an insurer engages in bad faith practices, you may be entitled to recover not only the benefits you are owed under the policy, but also additional damages. Under Texas Insurance Code § 542.060, you can seek actual damages, attorney fees, and in some cases, punitive damages if the insurer acted with malice or gross negligence.

The Texas Deceptive Trade Practices Act (DTPA) also provides protection for consumers who have been harmed by unfair insurance practices. These laws exist to level the playing field between powerful insurance companies and policyholders.

What You Can Recover in an Insurance Bad Faith Claim

If your insurance company has acted in bad faith, you may be entitled to several types of compensation. This includes the benefits you should have received under your policy in the first place, as well as consequential damages for financial harm caused by the denial or delay of your claim.

You can also recover interest and penalties for the insurer’s failure to pay on time, attorney fees and court costs, and in cases where the insurer acted with malice or gross negligence, punitive damages designed to punish the insurer and deter future misconduct.

The value of your case depends on the specific facts, the type of policy involved, and the severity of the insurer’s misconduct. In some cases, bad faith claims result in settlements or verdicts far greater than the original policy limits.

Why Insurance Companies Act in Bad Faith

Insurance companies are for-profit businesses. Their primary goal is to maximize revenue and minimize payouts. This creates an inherent conflict of interest. While you paid your premiums expecting coverage, the insurer profits most by paying as little as possible.

Many insurers use delay tactics to frustrate policyholders into giving up or accepting lowball offers. They know that most people do not have the resources to fight a prolonged legal battle. They also rely on complex policy language and fine print to confuse policyholders and create reasons to deny claims.

Some insurers have internal policies that encourage adjusters to deny or undervalue claims. Adjusters may be incentivized or even required to meet quotas for denials or savings. This corporate culture puts the insurer’s bottom line ahead of your rights as a policyholder.

How to Prove Insurance Bad Faith

Proving bad faith requires showing that the insurance company violated its duty to act fairly and in good faith. This means demonstrating that the insurer’s conduct was unreasonable under the circumstances.

Key evidence in bad faith cases includes all correspondence between you and the insurer, including emails, letters, and recorded phone calls. Claim files and internal documents from the insurance company can reveal whether they conducted a reasonable investigation. Expert testimony from insurance professionals can establish industry standards and show how the insurer deviated from accepted practices.

Documentation of your damages, including medical bills, repair estimates, lost income, and other financial harm caused by the denial or delay, is also critical. Proof of the insurer’s financial resources and history of similar misconduct can support claims for punitive damages.

Insurance companies have teams of lawyers working to protect their interests. You need experienced legal representation to gather the evidence, navigate the legal process, and hold the insurer accountable.

The Claims Process and What to Expect

If you believe your insurance company has acted in bad faith, the first step is to document everything. Keep detailed records of all communications with the insurer, including dates, names, and what was said. Save copies of all letters, emails, claim forms, and policy documents.

Before filing a lawsuit, Texas law requires you to provide the insurer with notice of your claim and an opportunity to resolve the dispute. This typically involves sending a formal demand letter outlining the basis for your bad faith claim and the damages you are seeking.

If the insurer does not resolve the matter within the required time frame, you can file a lawsuit. The litigation process may include discovery, where both sides exchange documents and information, depositions of witnesses and insurance company representatives, and potentially mediation or settlement negotiations.

If the case does not settle, it will proceed to trial where a judge or jury will determine whether the insurer acted in bad faith and what damages you are entitled to recover. Throughout this process, having an experienced Dallas insurance bad faith Lawyer attorney is critical to protecting your rights and maximizing your recovery.

If you are facing an unfair denial or delay from your insurance company, do not wait. The sooner you take action, the better your chances of holding the insurer accountable. Let us fight for you and pursue the compensation you deserve.

Common Tactics Insurance Companies Use to Deny Claims

Insurance companies use a variety of tactics to avoid paying valid claims. Understanding these strategies can help you recognize bad faith when it happens.

One common tactic is requesting unnecessary documentation repeatedly. The insurer asks for the same documents multiple times or demands irrelevant information to delay the claim. They may also misinterpret policy language, claiming that certain damages or events are not covered when the policy language clearly provides for coverage.

Some insurers offer unreasonably low settlements, hoping you will accept out of desperation or lack of knowledge about what your claim is worth. Others use delay tactics, such as failing to return phone calls, taking weeks or months to respond to correspondence, or claiming they need more time to investigate even when the facts are clear.

In some cases, insurers deny claims without explanation or change their reasoning multiple times when challenged. They may also refuse to provide a copy of your claim file or internal documents that would reveal their bad faith conduct.

These tactics are designed to wear you down and force you to give up or settle for less than you deserve. You do not have to accept this treatment.

Why You Need a Dallas Insurance Bad Faith Lawyer

Taking on an insurance company without legal representation is extremely difficult. Insurers have legal teams, unlimited resources, and years of experience minimizing payouts. You need an attorney who understands insurance law, knows how to gather evidence of bad faith, and is willing to take your case to trial if necessary.

A Dallas insurance bad faith lawyer can level the playing field. We investigate your claim thoroughly, obtain internal documents from the insurer through discovery, consult with experts to establish industry standards, and build a compelling case for bad faith.

We also handle all communication with the insurance company so you do not have to. We know the tactics they use and how to counter them. Most importantly, we are not afraid to go to trial if the insurer refuses to make a fair offer.

Insurance companies are more likely to offer a fair settlement when they know you have experienced legal representation. They understand that a lawyer who is prepared to litigate poses a real threat to their bottom line.

What to Expect From Varghese Summersett

At Varghese Summersett, we treat every client with the respect and attention they deserve. When you hire us, you are not just a case number. We take the time to understand your situation, explain your legal options, and develop a strategy tailored to your specific needs.

Our Dallas insurance bad faith lawyers have extensive experience handling complex insurance disputes. We know how to investigate claims, gather evidence, and hold insurers accountable. We work on a contingency fee basis, which means you do not pay anything unless we recover compensation for you.

From the moment you hire us, we take over all communication with the insurance company. We handle the paperwork, negotiate on your behalf, and prepare your case for trial if necessary. Our goal is to resolve your case as quickly as possible while maximizing your recovery.

We have a proven track record of success in personal injury and insurance cases. Our team includes legal professionals across four Texas offices in Dallas, Fort Worth, Houston, and Southlake.

Frequently Asked Questions

How long do I have to file an insurance bad faith claim in Texas?

The statute of limitations for insurance bad faith claims in Texas is generally two years from the date the insurer denied your claim or committed the act of bad faith. However, this deadline can vary depending on the specific facts of your case. It is important to consult with an attorney as soon as possible to protect your rights and ensure you do not miss any critical deadlines.

Can I sue my insurance company if they denied my claim?

Yes, if your insurance company denied your claim without a valid reason or failed to conduct a reasonable investigation, you may have grounds to sue for bad faith. Texas law requires insurers to act fairly and in good faith when handling claims. If they violate this duty, you can pursue legal action to recover the benefits you are owed, as well as additional damages.

What is the difference between a denied claim and a bad faith claim?

A denied claim simply means the insurer has refused to pay your claim. A bad faith claim goes further. It means the insurer denied your claim without a valid reason, failed to investigate properly, or engaged in other unfair practices. Not every denied claim is bad faith, but if the denial was unreasonable or the insurer acted dishonestly, you may have a bad faith claim.

How much does it cost to hire a Dallas insurance bad faith lawyer?

At Varghese Summersett, we handle insurance bad faith cases on a contingency fee basis. This means you do not pay any upfront fees or costs. We only get paid if we recover compensation for you. Our fee is a percentage of the settlement or verdict, so there is no financial risk to you for pursuing your claim.

What should I do if my insurance company is delaying my claim?

If your insurance company is delaying your claim, start by documenting everything. Keep detailed records of all communications, including dates, names, and what was discussed. Send a written demand to the insurer asking for a specific timeline for resolution. If the delays continue, contact an experienced insurance bad faith attorney. Unreasonable delays can be evidence of bad faith, and you may be entitled to additional damages beyond what

Get Help From a Dallas Insurance Bad Faith Lawyer Today

You trusted your insurance company to be there when you needed them most. Instead, they turned their back on you. You do not have to face this fight alone.

At Varghese Summersett, we believe insurance companies should be held accountable when they act in bad faith. Our Dallas insurance bad faith lawyers have the experience, resources, and determination to take on even the largest insurers and fight for the compensation you deserve.

Call us today at (214) 903-4000 for a free consultation. We will review your case, explain your legal options, and help you decide on the best path forward. You have nothing to lose and everything to gain.