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Whether it’s a hurricane, a burst pipe, or a devastating house fire, you expect your insurance company to step up, not step back. After all, you’ve faithfully paid your premiums, met every deadline, and submitted all required documents. But instead of support, you’re facing roadblocks: endless hold times, vague responses, or settlement offers that barely scratch the surface of your actual loss. If this scenario sounds all too familiar, you may be dealing with insurance bad faith.

At Palker Law Firm, we know the games some insurers play. And we’re here to help you recognize the signs, understand your rights, and fight back with confidence.

Unreasonable Delays in Processing Your Claim

One of the earliest red flags is delay. After filing your claim, you should receive timely updates and a fair investigation. But instead, weeks may pass with little to no word. Adjusters stop returning calls. Your emails go unanswered. Each new excuse sounds more like a stall tactic than a legitimate reason. These delays aren’t just inconvenient; they may be intentional efforts to pressure you into settling for less, or to wear you down into giving up altogether.

Under Texas law, insurance companies must acknowledge receipt of your claim, begin an investigation within 15 calendar days, and provide a decision within a reasonable time. If they accept the claim, payment should be issued within five business days. Make sure they follow the law.

Tip: Keep a claim journal. Log the date, time, and content of every interaction with your insurer to build a timeline of their delays.

Denial Without a Clear Explanation

A legitimate claim denial should come with more than a simple “not covered” note. It should include a detailed, policy-based explanation that points to specific clauses and clearly outlines why the claim is being rejected. If your denial lacks that transparency, it might not just be bad customer service. It could be bad faith.

Vague or generic denial letters are often a tactic to confuse policyholders or deter them from pushing back. Don’t assume the insurer is always right. A legal review may uncover that your claim was wrongfully denied or misrepresented.

Tip: Ask for a written denial that references the exact policy language, and don’t take no for an answer without legal review.

Lowball Settlement Offers

You’ve done your homework. You’ve gathered contractor estimates, repair bills, and visual proof of damage. But the offer from your insurance company is nowhere near what’s needed to cover your losses.

Offering unreasonably low settlements forces policyholders into a tough corner: accept less than what you’re owed or spend more time and money fighting for it. But you have rights, and you don’t have to settle for less than fair compensation.

Tip: Never accept a first offer without consulting a trusted attorney to evaluate the real value of your claim.

Misrepresenting Policy Terms

When your insurance adjuster tells you that something “isn’t covered,” always verify it. Unfortunately, some insurers misrepresent what your policy actually says, either out of incompetence or, worse, in an attempt to deny valid claims. If you’re being told your coverage excludes something that your written policy clearly includes, it’s a red flag for bad faith behavior.

Policy documents are complex, but that complexity is no excuse for manipulation. Misleading a policyholder about their coverage is not just unethical; it may be illegal.

Tip: Request a copy of your full policy and review it carefully. Don’t rely solely on what an adjuster says.

Threats or Intimidation

Insurance companies are powerful, but they are not above the law. If you’re being pressured into accepting a quick settlement, or if the adjuster uses fear-based tactics like saying you’ll “get nothing” if you don’t sign right away, you may be a victim of intimidation.

No one should feel bullied by their insurer. This kind of behavior is not only inappropriate; it’s a violation of your rights. These scare tactics are designed to rush you into a decision that’s not in your best interest.

Tip: Never make a decision under pressure. If an adjuster becomes aggressive, end the conversation and consult a legal professional.

Refusing to Investigate the Claim

A proper investigation is a critical part of any insurance claim. The insurer has a duty to assess damage thoroughly and impartially. But in bad faith situations, that investigation might be skipped, rushed, or blatantly ignored. Your photos and documentation may be brushed aside. Your damage may go unseen.

This is especially common in property claims involving water or structural issues. An incomplete investigation almost guarantees an unfair payout, or a wrongful denial altogether.

Tip: Take your own photos and notes. If your insurer doesn’t inspect the damage, or does so hastily, get a licensed contractor to provide an independent assessment.

Cherry-Picking Evidence

In a fair claims process, all evidence should be considered equally. But some insurers engage in cherry-picking, selectively using evidence that supports their decision to deny or minimize your claim, while ignoring reports, photos, or testimony that back your side of the story.

This tactic isn’t just dishonest; it can skew the outcome of your claim entirely. The National Association of Insurance Commissioners (NAIC) emphasizes the importance of insurers evaluating all aspects of a claim objectively, not just what benefits them.

Tip: Send all supporting evidence in writing and request confirmation of receipt. This creates a record of what they’ve seen, and what they’ve ignored.

What You Can Do If You Suspect Insurance Bad Faith

If you’re seeing one or more of these warning signs, don’t wait. Texas law protects you from bad faith insurance practices. You have the right to demand fairness, and you may be entitled to compensation beyond your original claim amount.

Start by documenting everything: claim numbers, communications, estimates, policy terms, and evidence of damage. Then, contact an attorney with experience in insurance bad faith litigation. Legal action may be the only way to compel your insurer to do the right thing.

Tip: Even if your claim was already denied or underpaid, you may still have options. A skilled attorney can reopen and re-evaluate your case.

Let us fight for you!

At Palker Law Firm, we understand how overwhelming the claims process can be, especially when you’re dealing with insurers who aren’t acting in good faith. Our team has recovered millions for Texas policyholders wronged by their insurance companies. And we do it all on a contingency basis: you don’t pay unless we win.

Visit palkerlaw.com to schedule your free case review.