What is the real deadline for filing a Hurricane Ike insurance lawsuit?
The two year anniversary of Hurricane Ike came and went on September 13, and we received a great many calls from new and potential clients leading up to that date. Frustrated with two years of effort trying to get their insurance company to honor their contracts, and seeing other firm’s marketing that “the end is near,” Texas homeowners and businesses turned to the legal system in large numbers to address their Ike insurance disputes. One of the most common questions we received is this: when do I need to file suit to protect my rights?
Billboards aside, the law provides several different time frames for filing a homeowners or business insurance dispute. An insurance policy is a contract – in exchange for a premium, an insurance company agrees to honor legitimate claims. In Texas, you need to file a claim for breach of contract within four years of the violation of the agreement. But for most of our clients, the insurance company unfortunately has done more than just breach their agreement. Frequently, we have found upon investigation that the insurance company acted unreasonably and in bad faith when they denied or delayed the hurricane insurance claim. In those circumstances, suit must be brought within two years of the denial. To be safe, any insurance lawsuit involving property damage or other acts of insurance misconduct should be brought within two years of the denial.
Most of the time the insurance company didn’t come right out and announce that they were denying the claim. Instead, they issued grossly understated and inappropriate estimates, and only after the homeowner or business owner pushed for fairness did the insurer and the adjusters come right out and refuse to honor the claim. After Hurricane Ike, this often took months. So, any homeowner or business owner should look carefully at what the insurance company provided, and if the insurance company is still acting unfairly, the insured policy holder generally should be prepared to file suit within two years of the first estimate or underpayment. Most importantly, every case is different, so it is critical that anyone dealing with ongoing insurance denials consult with an attorney to find out the time limits applicable to their case.
Doyle Raizner LLP represents hundreds of homeowners and businesses in insurance disputes, and we continue to accept select homeowners and business property claims arising out of Hurricane Ike.