Newsletter – August – Insurance Claim Clarification
As we continue to watch and worry about our friends on the Texas Gulf Coast, I saw and heard a lot about the “File by Friday” deadline for filing notice of Hurricane Harvey insurance claims.
There is no need for panic. Here’s some information that I hope helps to clarify the matter:
1. September 1 is when several new provisions of the Texas Insurance Code go into effect. Remember when the Texas Legislature passed the “Blue Tarp” law? Those are the provisions. Love ’em or hate ’em, they are about to go into effect.
2. One provision of the law lowers the amount of interest insurance companies have to pay if they violate the Prompt Payment Act. This has nothing to do with the claim itself-it’s about timely payment of the claim. Insurance companies will still pay a penalty, but it will be lower for claims filed after September 1.
3. The provision is only relevant to claims for which a lawsuit is filed when no settlement can be reached with the insurance company. It has no impact on straightforward public adjusting claims.
4. For the majority of home and business owners – especially those that hire a qualified, licensed public adjuster to assist with their insurance claim – there will be no need for a lawsuit. In most cases, public adjusters complete claim settlements on behalf of their clients without litigation.
My apologies for any inconvenience or unnecessary alarm the news link
that I supplied might have created. Please note, in no way are my newsletters meant to be legal advice.
Many Thanks to my Metropolitan Breakfast Club fellow member and friend, Kaye Beneke, for these points of clarification!