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Insurance Bad Faith Claims

Have you filed an insurance claim, only to have your claim underpaid or completely denied?

Insurance companies have the right of denial or underpayment, provided the claim requested is inaccurate or not within the bounds of the policy. However, they do not have the right to deny or underpay a claim that is clearly covered by the policy. This is why Caddell & Chapman challenged Farmers and Hartford insurance companies for their alleged systematic underpayment of claims involving major damage on behalf of a nationwide class of insureds. In the Hartford litigation, Caddell & Chapman served as the sole lead counsel of a nationwide class of more than 100,000 insureds. The alleged underpayment of homeowner's claims was the result of Hartford's neglecting to include a payment for general contractor's overhead and profit as part of the up-front "actual cash value" payment made to insureds after the initial estimate of the insured's property damage. Caddell & Chapman was instrumental in successfully negotiating a settlement of the litigation, which was approved by the District Court of Arizona, in June 2008, as well as the payment, in March 2009, of more than $2.4 million in settlement funds for qualifying class members (total attorneys' fees: $605,000; litigation expenses: $10,000) without the need for any class member to make a claim. Caddell & Chapman is lead counsel presently in a similar national class action against Farmers.

When an insurance company denies or underpays on a valid claim, they are acting in bad faith. Insurance policy holders have the right to take action.

What is Insurance Bad Faith?

Policy holders pay insurance premiums in good faith. They do so with the expectation that, if they actually need to file a claim, the insurance company will cover them for the full value of the claim. This is true with all types of insurance, including homeowners insurance, business owners insurance, and car insurance.

When an insurance company engages in unreasonable delay, or wrongly refuses to cover the full value of the claim as promised in the policy, their conduct can amount to what is known as insurance bad faith. For example, in 2009 Caddell & Chapman successfully handled a major wrongful denial of coverage/bad faith insurance claim against Lexington Insurance Company involving the partial collapse of a 108 unit condominium project, where damages were estimated to be $26.5 million. Caddell & Chapman's experienced attorneys played a major role in litigating several large bad faith and coverage lawsuits against major insurance companies resulting in substantial recoveries ranging from $7 to $20 million.

If it Happened to You, it May Have Happened to Someone Else

At the law firm of Caddell & Chapman, our attorneys have more than two decades of experience. During this time, we have focused on handling significant cases, such as major insurance bad faith issues. We offer representation throughout Texas and on a nationwide basis.

Our first step in these cases is to determine how many people have been impacted by the actions of the insurance company. Frequently, we find that they have developed a uniform practice of underpaying or denying claims.

If we have enough evidence that this is the case, we will pursue a class action lawsuit. We will seek compensation for you and for everyone else who has been the victim of unfair practices by the insurance company.

Contact us today to discuss your case with an experienced lawyer.

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