Texans urged to file claims before law changes on Friday

Related: Most Harvey flood victims on hook to pay for home repairs

By Anna M. Tinsley / Fort Worth Star-Telegram

FORT WORTH, Texas — The last thing victims of Harvey likely are thinking about right now is insurance claims.

But some lawyers are urging the countless Texans whose homes and businesses were damaged from the hurricane and ongoing flooding to file initial insurance paperwork before Friday.

Any claims initiated by then fall under current law. Any claims made Friday or beyond fall under a new law — House Bill 1774 — that some fear will make it harder for Texans to receive some insurance payments.

“It’s going to save the insurance companies a lot of money and cost homeowners a lot of money in denied claims,” said Jason Smith, a Fort Worth attorney who investigated insurance companies’ fraudulent practices in the Texas Attorney General’s office in the 1990s.

State Sen. Kelly Hancock, R-North Richland Hills, who carried the bill in the Senate, emphasized that he currently is focused on the storm and making sure Texans get out of harm’s way.

He said the new law is being distorted.

“There is no need to rush to file a claim,” he said. “Put your safety first. Do not return to seriously damaged property unless you are informed that it is safe.”

But several attorneys say Texans should hurry and at least start the claim process before Friday.

Smith said a detailed filing isn’t needed, just a simple email to the insurance company noting that the homeowner is making a claim on their homeowners policy for damage related to Hurricane/Tropical Storm Harvey.

Anyone who can’t get online access should write the same thing down on paper and get it in the mail as soon as possible.

“That’s enough to initiate the claims process,” Smith said. “You don’t have to have all the information yet. You just need to say ‘there’s damage to my home’ and send it to the insurance company.”

The new law applies to a variety of property damages involving “forces of nature” such as lightning, hail, rainstorms, flood, wind, snowstorms, wildfire, tornadoes — or hurricanes.

The goal was to cut down on excessive lawsuits, many related to hail storms.

The new law shrinks the penalty interest rate insurance companies must pay out if they make late payments to Texans. The rate currently is 18 percent; it drops to around 10 percent as of Friday.

Texans with rejected claims may still sue the insurance company. But the new law also drops the chance that insurance companies will have to pay in full for a homeowner’s attorney fees.

Hancock noted Texans can still sue, as well, if an insurance company “acts in bad faith.” In those cases, he urges anyone affected to report their insurance company to the Texas Department of Insurance Consumer Help Line at 1-800-252-3439.

Beyond that, if a lawsuit is needed, “HB 1774 limits lawyer’s fees so that more awarded damages stay in the pockets of the rightful recipient, the property owner,” according to the statement from Hancock’s office.

The law goes into effect, along with nearly 700 others, on Sept. 1.

Texans for Lawsuit Reform, which supported this legislation, has indicated critics are overstating concerns about the new law.

State Rep. Chris Turner, D-Fort Worth, opposed this measure.

“The measure that passed does nothing to lower insurance premiums or protect homeowners,” Turner, head of the House Democratic Caucus, said when it passed. “Instead, it punishes Texans who make legitimate weather-related claims by making it easier for insurance companies to deny them.”

Texas attorneys have been posting messages online, particularly on Facebook, encouraging Texans to get their claims in — if at all possible — before Friday.

“We fear this natural disaster is going to be compounded by the man-made disaster of dangerous laws that make it harder to fight insurance companies when they wrongfully deny, delay or underpay valid claims,” said Ware V. Wendell, executive director of Texas Watch.

“Texas property owners should arm themselves with knowledge, get their claims on file as soon as they discover damage, and refuse to take no for an answer if insurance companies try to strong-arm them in the wake of this terrible storm.”

Smith said any delays in paying out claims, he said, will hurt the homeowner or business owner trying to make repairs — and financially help insurance companies.

Not only that, but “the longer an insurance company drags the process out, the more likely a policy holder will be willing to take less on their claim just to get money on their claim,” Smith said.

He stresses that the insured should not give up if a claim is denied by their insurance company.

“Ask them to re-evaluate it, ask for a lawyer, but don’t take no for an answer,” Smith said. “Insurance companies are notorious for denying claims just to see who will pursue them.”

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

A firefighter stands in silence before a panel bearing the names of L. John Regelbrugge and Kris Regelbrugge during the ten-year remembrance of the Oso landslide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
‘Flood of emotions’ as Oso Landslide Memorial opens on 10th anniversary

Friends, family and first responders held a moment of silence at 10:37 a.m. at the new 2-acre memorial off Highway 530.

Julie Petersen poses for a photo with images of her sister Christina Jefferds and Jefferds’ grand daughter Sanoah Violet Huestis next to a memorial for Sanoah at her home on March 20, 2024 in Arlington, Washington. Peterson wears her sister’s favorite color and one of her bangles. (Annie Barker / The Herald)
‘It just all came down’: An oral history of the Oso mudslide

Ten years later, The Daily Herald spoke with dozens of people — first responders, family, survivors — touched by the deadliest slide in U.S. history.

Victims of the Oso mudslide on March 22, 2014. (Courtesy photos)
Remembering the 43 lives lost in the Oso mudslide

The slide wiped out a neighborhood along Highway 530 in 2014. “Even though you feel like you’re alone in your grief, you’re really not.”

Director Lucia Schmit, right, and Deputy Director Dara Salmon inside the Snohomish County Department of Emergency Management on Friday, March 8, 2024, in Everett, Washington. (Ryan Berry / The Herald)
How Oso slide changed local emergency response ‘on virtually every level’

“In a decade, we have just really, really advanced,” through hard-earned lessons applied to the pandemic, floods and opioids.

Ron and Gail Thompson at their home on Monday, March 4, 2024 in Oso, Washington. (Olivia Vanni / The Herald)
In shadow of scarred Oso hillside, mudslide’s wounds still feel fresh

Locals reflected on living with grief and finding meaning in the wake of a catastrophe “nothing like you can ever imagine” in 2014.

Ariel Garcia, 4, was last seen Wednesday morning in an apartment in the 4800 block of Vesper Dr. (Photo provided by Everett Police)
A brief timeline of Ariel Garcia’s disappearance

The Everett boy, 4, went missing early Wednesday. The following evening, police announced they found the remains of a small child.

Everett
Everett man accused of supplying drugs in suspected jail overdose death

Angel Lewis Leffingwell, 38, pleaded not guilty to controlled substance homicide Friday in the Whatcom County Jail death.

Eleazar Cabrera (Washington State Department of Corrections)
Marysville man gets 29 years for Snohomish home invasion, shooting

A jury convicted Eleazar Cabrera of first-degree assault and first-degree robbery for shooting a resident in the back multiple times.

People wander around and photograph fields of tulips, daffodils and other flowers during the Skagit Valley Tulip Festival at RoozenGaarde in Mount Vernon, Washington, on Friday April 14, 2023. (Annie Barker / The Herald)
Color your day at the Skagit Valley Tulip Festival

The farms are in bloom this weekend. The festival, in its 41st year, runs through the month of April.

Ariel Garcia, 4, was last seen Wednesday morning in an apartment in the 4800 block of Vesper Dr. (Photo provided by Everett Police)
Days before Everett boy, 4, was found dead, grandma had won custody

After a massive search, Ariel Garcia’s body was discovered somewhere outside Everett on Thursday. His mother was arrested in Clark County.

Everett mall renderings from Brixton Capital. (Photo provided by the City of Everett)
Topgolf at the Everett Mall? Mayor’s hint still unconfirmed

After Cassie Franklin’s annual address, rumors circled about what “top” entertainment tenant could be landing at Everett Mall.

Everett
Everett man sentenced to 3 years of probation for mutilating animals

In 2022, neighbors reported Blayne Perez, 35, was shooting and torturing wildlife in north Everett.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.