Dallas Insurance Law Attorneys Blog

Flood damages cause art museum to look for other locations

2012-05-17T05:15:13Z

If there was such a thing as an eraser for a landscape, it would probably be a flood. Every year, Texas residents frequently watch as a flood destroys their homes and livelihoods. However, what can seem equally as devastating for the community as a whole is when centers of culture and art are wiped out. Frequently, the works of art are irreplaceable, even if they have insurance.

For one art gallery, they are having problems with saving their art from future natural disasters. With an art collection worth $500 million, they are located right near the river in what turned out to be an unfortunate position. When the river flooded in 2008, they did their best to evacuate, but some of the art was damaged.

]]> Unwilling to risk the loss of more pieces and with its building destroyed, the museum moved its undamaged pieces out on loan and tried to move their collection to another location. They asked the Federal Emergency Management Agency (FEMA) for help in assisting the move, as FEMA often helps restore buildings that have been damaged in natural disasters. However, FEMA refused the request and instead offered to repair it so that it could be as functional as it was before the flood. As can be imagined, the museum is currently looking at other options so as to protect their valuable artwork.

For those who are victims of a flood in Texas, it can be astounding how much damage can be wrought in a relatively short period of time. In particular, floods can cause great damage and ruin priceless works of art and the related property insurance issues are indeed complicated. Though nobody can fully prepare for the devastation that a flood can bring, it is hoped those affected by such disaster may be able to recover from this difficult time.

Source: KCRG, "FEMA Denies Second University of Iowa Appeal on Art Museum," Diane Heldt, May 9, 2012

Denied insurance claims due to discrimination sadly still persist

2012-05-09T06:02:47Z

Discrimination can unfortunately exist in many forms, including denied insurance claims. Even in Texas, too many people today are denied insurance claims because of who they are rather than anything that they actually did. For example, Mortgage Guaranty Insurance Corp., the largest national mortgage insurer, has recently been sued by the Justice Department for discriminating against those who choose to be parents.

The discrimination was first found when a complaint was made to the Housing and Urban Development Department. According to the complaint, those who were on maternity leave had to return to work before the Mortgage Guaranty Insurance would agree to insure a mortgage loan.

]]> The Justice Department recently settled this discrimination case, saying that no lending company should ever have such control over a person. A $511,250 fund has been set up to compensate 70 people said to have been damaged by the discriminatory acts. After this financial setback, it is hoped that Mortgage Guaranty Insurance will learn their lesson and cease any discriminating practices.

Though this is only one case, there are many other cases of denied insurance claims solely due to acts of discrimination. For Texas residents who face these kinds of cases, it might be beneficial to report the claim to someone who may be able to assist in resolving it favorably. In this way, they may be able to end these discriminatory practices while upholding the rights of others to live free from this type of onerous activity that is not only personally offensive but often in violation of state and federal statutes.

Source: KGWN TV, "US settles over mortgage insurance denied to women," Pete Yost, April 30, 2012

Denied insurance claims in connection with fatal Christmas fire

2012-05-01T21:33:34Z

Although it did not happen here in Texas, a story about a fatal fire on Christmas day that took the lives of five victims and grabbed national attention has taken another tragic turn. Reportedly, the insurance company that covers the construction outfit that was renovating the house has recently denied insurance claims relating to the disaster. Unfortunately, this is an all too common tale, although it is not usually so heart-rending.

On this past Christmas Day, a fire that appears to have been caused by discarded fireplace ashes took the lives of 7-year-old twin girls, a 9-year-old girl and their grandparents. The fireplace ashes were apparently placed near an entry by the man who was the owner of Tiberius Construction, which was renovating the home. Utica First Insurance Co. covers the construction company, but is now saying that the man who owns the outfit misrepresented it. Because of his misrepresentation, the insurance company claims, Utica is not obligated to pay anything.

]]> Utica alleges that it was misled about the sales, payroll, size and the type of work that Tiberius does. If it had known the truth, it claims, it would never have covered the construction company. It has asked for a court judgment declaring that it has no obligation in connection with the fire.

Tragically, the denied insurance claims present another hurdle for the family of the victims as they struggle to overcome their loss. Looking ahead, though, the father of the three young girls has pledged to support underfunded elementary school arts programs as a way of keeping the memory of his daughters alive. He is also considering other possible legal options to recoup the compensation that he may well deserve. We can only hope that should a similar tragedy happen in Texas, the victims are not left having to battle the insurance company in addition to suffering through the immense pain that can be brought by the loss of a loved one.

Source: KWES West Texas News, "Insurance co. balks at claims in fatal Conn. fire ," John Christoffersen, April 26, 2012

University of Texas student dies after being run over by bus

2012-04-26T02:20:05Z

When a person is injured or tragically killed by the actions of an employee of a company, they or their family may be able to recoup compensation by filing a claim with the company's insurer. This also holds true with regards to car accidents and other types of motor vehicle accidents where a person is accidentally struck by a company vehicle. For the family of a young man, that may help them with achieving some closure over their loss.

The young man suffered fatal injuries in an accident involving a bus early on the morning of April 20. The 22-year-old, who was a student at the University of Texas in Austin, was evidently returning to campus after spending time in the downtown Entertainment District. Cap Metro E-Buses regularly run between the district and the school -- probably in order to ensure that students arrive back at campus safely.

]]> Unfortunately, when the bus arrived at the young man's destination and he stepped off, he fell backwards and underneath the vehicle. However, the driver did not notice what had happened and began to drive away, causing the bus' rear wheels to cross over the man's torso. He was pronounced dead shortly thereafter at an area hospital.

In this case, it appears that the young man was intoxicated and police also do not expect to file charges against the bus driver. Nonetheless, it may be possible for the family of the deceased Texas student to seek compensation by filing a claim with the insurer of the Cap Metro system. The claim could subsequently assist them with funeral expenses as well as provide compensation for their emotional pain and suffering. Victims of car accidents and their families often do not deserve to suffer financially for an injury or fatality brought about through the actions of another.

Source: KHOU, "University of Texas student killed in bus accident ," Jade Mingus, April 21, 2012

Insurance companies deny legitimate claims all too often

2012-04-19T23:24:54Z

Texas residents may be interested in the outcome of a lawsuit that an elderly woman won against an insurance company. The woman moved into a long-term care facility in 2008, and she began receiving benefits from the insurance company at that time under the terms of a policy she and her husband took out over a decade earlier. However, those benefits were denied in 2010, setting the stage for the lawsuit. Fortunately, when insurance companies deny legitimate claims, legal options are often available.

In this case, the woman and her husband bought a long-term care policy in 1997 from a company that was called Mutual Protective Insurance. Her husband died a year later, but she continued to pay the premiums on the policy. However, the company was sold multiple times until it was finally bought by Ability Resources Inc. and renamed to Ability Insurance Co. in 2007.

]]> In 2007, the woman was diagnosed with dementia, and she later had to move into a long-term care facility in Montana, at which time she started to receive the benefits. However, Ability cut off her benefits in January 2010 after a review of the policy. While those benefits were eventually reinstated in October 2011, the company still refused to pay the benefits for the interim period. On April 6, though, a federal jury unanimously ruled against the company for this action and in favor of the elderly woman.

The total verdict amount was for $34 million, $32 million of which is punitive damages. As Montana caps punitive damages at $10 million, this amount may later be reduced, but it nonetheless illustrates that when insurance companies deny legitimate claims, they will have to accept responsibility for their actions. Texas residents battling with their own insurance company may well take some heart from this ruling.

Source: Billings Gazette, "Jury awards elderly Billings woman $34 million in long-term care dispute," Clair Johnson, April 9, 2012

Tips for avoiding property insurance disputes

2012-04-10T18:50:14Z

In mid-March, we mentioned on this blog about how some insurance companies were rethinking property insurance following the 2011 tornado season. That may make dealing with property insurance companies somewhat more difficult, which is why it is so important to take some easy and quick steps to ensure one's claim is not denied. Recently, a local news report mentioned a few things that homeowners can do, particularly in the wake of the latest outbreak of tornados in Texas on April 3.

Perhaps the first thing to do is to extensively document damage done to the property. This involves taking photos and video of the damage, which can then be shown to a claims adjuster. In the event that a claim is denied, this documentation may prove invaluable in seeking to reverse the insurance company's decision.

]]> Secondly, it's important to document the cost of the repairs so that one can be reimbursed for their expenses. For example, insurance companies may reimburse temporary repairs, but they will need the receipts. Last, but certainly not least, homeowners should check twice before hiring any contractor to perform repairs on their house. Unfortunately, there are those who seek to take advantage of others after any natural disaster. To avoid such people, it may be worthwhile to first check with friends and with the Better Business Bureau before hiring anyone.

Of course, even after following these guidelines, many Texas homeowners may still have trouble with their insurance company. Yet by documenting the damage and the cost of repairs, it may be easier to resolve any dispute about the property insurance. Furthermore, taking care to carefully document everything may also reduce one's own financial exposure to the cost of repairing the damage.

Source: KDAF-TV, "Tips for filing your insurance claim after the tornado," Charles Bassett, April 4, 2012

Model reaches settlement after airplane propeller injuries

2012-04-04T18:25:08Z

Accidents causing personal injury can happen unexpectedly, which is why it is so important for companies and individuals to have insurance. Unfortunately, insurance companies do not always pay out, and instead quibble over the definition of certain words in their policy. That is reportedly what happened to model and fashion editor Lauren Scruggs, who received a personal injury from a propeller last year.

The accident happened at a private airport north of Dallas, Texas on Dec. 3, 2011. Scruggs was exiting the propeller plane, but the pilot had left the propellers running as she did so. She subsequently suffered a serious accident after the propeller sliced off her left hand. Doctors also had to remove her left eye weeks later.

]]> On March 12, Scruggs filed papers in a Texas court, saying that the insurance company for the pilot and plane's owner owed her monetary relief for her injuries. This, at least, appears to have not been in dispute. However, the insurance company was claiming that their liability was limited to just $100,000. Under the policy, there is a $100,000 limit for a "passenger," although Scruggs says that as she was already off the plane at the time of the accident, she was not a passenger.

Reportedly, the insurance company offered her $200,000 from two separate policies that were covering the plane. Initial news reports said that she had rejected this offer, although one of her representatives clarified on March 27 that negotiations were ongoing. Nonetheless, as of March 28, the two sides were able to reach a settlement over her personal injury.

Source: ABC News, "Lauren Scruggs Reaches Settlement in Propeller Accident ," Lauren Sher, March 28, 2012

Fire damage to Texas apartment building costs $75,000

2012-03-27T15:21:23Z

An apartment building in Texas recently received significant fire damage, requiring five crews to put out the flames. Fortunately, no one was injured in the blaze. However, the fire damage is estimated to cost $75,000.

The fire happened at about 7 p.m. on March 24, and officials believe that the cause of the blaze was an electrical short. It started in an apartment where there was a woman and two small children, although all managed to escape safely. Firefighters managed to contain the blaze to that one unit, but three other apartment units were also significantly damaged either directly from the fire or from smoke.

]]> Those Texas families who are now displaced are being assisted by the American Red Cross. However, if they have renter's insurance, they may be able to receive compensation for any damage to their belongings. Likewise, the owners of the building may also have property insurance that could cover the $75,000 in fire damage. Depending upon the terms of the policy, the property insurance may also go toward covering the damages suffered by the displaced families.

Unfortunately, obtaining the compensation one is owed under their insurance policy is often easier said than done. The insurance company may delay paying out the claim, or even deny the claim. In this case, the fire damage appears to have been caused by an electrical short, and depending upon the policy one has, it is possible that an insurance company could attempt to use the excuse of a latent defect in the property to avoid paying out. For the families and the property owner, they may well need to take aggressive action to procure the compensation they may deserve.

Source: KVIA, "Eastside Apartment Fire Leaves Several Families Homeless ," Gerardo Najera, March 25, 2012

Premises liability accident: Girl injured at Texas carnival

2012-03-19T23:20:50Z

As some readers may be aware, the Houston Livestock Show and Rodeo carnival recently took place. Such carnivals are often fun to attend, and those who manage them certainly try their best to ensure that the rides are as safe as possible. Unfortunately, premises liability accidents due to mechanical or design defects do happen, causing injury to others.

One such accident happened on March 14 after a young Texas girl fell off a ride known as the "Techno Jump." After struggling to hold on to the ride, the girl was flung out away from it. It was not known how she eluded the seat belt and lap bar restraints despite a video recording of the incident. Fortunately, it appears she suffered only a concussion, but head trauma can lead to unexpected injuries and it certainly could have been much worse.

]]> In this case, the girl met the minimum height requirement for the ride, but her mother was unable to accompany her on the ride. Instead, the girl rode with her brother. As a consequence, the carnival now requires that passengers on the "Techno Jump" ride and other similar rides have a "supervising companion" age 16 or older.

Regardless of the rule change, the carnival may still be liable for any premises liability accidents. Here, the carnival is presumably insured, meaning that the Texas family of the girl may be able to recover compensation by filing a claim with the insurance company. In order to avoid unnecessary hassles with the company, they may wish to file the claim sooner rather than later while recollections are still fresh.

Source: KTRK-TV Houston, "RodeoHouston changes 16 carnival rides' policies after accident ," Deborah Wrigley, March 16, 2012

Tornados make insurance companies rethink property insurance

2012-03-14T22:15:10Z

The 2011 tornado season was the most expensive yet for insurers, who lost nearly $26 billion from tornados and related storms that year. And although the 2012 season has scarcely begun, insurers have already lost $2 billion. That is leading some companies to rethink how underwriting is handled for certain types of property insurance claims, and that could in turn spell trouble for many Texas homeowners who may be left with a higher bill.

The storm activity on March 2 alone resulted in 6,300 claims for State Farm, and that was just for one insurance company on the first day after the deadly storm hit. Homeowners are not the only ones making claims. A person may file a claim for anything they have insurance on, such as a motor vehicle.

]]> In some cases, insurance companies have simply stopped covering certain types of houses in response to the recent spike in tornados. However, it appears that what most are considering is instead pushing through underwriting changes with an aim toward increased profitability. For homeowners in Texas and across the American south, that could well be code for denying more insurance claims.

When an individual takes out property insurance on their home, car or other piece of property, they expect the insurance company to uphold their end of the contract. But with mounting losses, insurance companies could begin making it more difficult for a policy holder to the get the compensation they deserve following a natural disaster. It is vitally important then for affected homeowners to demand that the insurance company cover what they agreed to cover, and there are a number of legal options available that one may pursue to do this.

Source: Chicago Tribune, "Analysis: Insurers forced to rethink tornado coverage ," Ben Berkowitz, March 7, 2012

Two drivers injured on Dallas roadway

2012-03-11T01:28:58Z

Trying to get an insurance company to cover a motor vehicle accident in which there was injuries can often be difficult. The company may contend that due to the circumstances of the accident, they do not have to cover the personal injury. However, what the insurance company may really be looking at is their own bottom line rather than what the policy covers.

At least two people may now find themselves fighting with their insurance company to cover damage and injuries relating to a car accident on the Dallas North Tollway on Feb. 23. The accident happened at just before 4:30 p.m. when the driver of a semi-truck was reportedly traveling too fast. The driver ended up crossing three lanes of northbound traffic, and in the process pushed an SUV across the road and into southbound traffic. The semi then flipped over on its side and crashed on top of a second vehicle.

]]> The 49-year-old driver of the trapped car was taken to Parkland Hospital, where he is listed in serious condition. Paramedics also took the SUV driver to a local hospital, but his condition was not known at the time of a local news report about the accident. The semi driver was uninjured and charged with "failure to control speed."

In this case, it seems like a cut and dry issue for each victim's insurance company. The semi driver appears to have negligently caused the Dallas North Tollway accident, and those injured were certainly harmed through no fault of their own. Nonetheless, it is hardly uncommon for an insurance company to attempt to limit their liability, and restrict the insurance proceeds to only certain items. However, a dedicated professional knowledgeable in these matters may be able to take the fight to the insurance company and secure a fair result that adequately covers the driver's personal injury as well as damage to the vehicle.

Source: CBS DFW, "18-Wheeler Crash Closes Dallas Tollway For Hours," Feb. 23, 2012

Denied insurance claims for Hurricane Ike lead to lawsuits

2012-02-29T04:12:26Z

It may seem to many Texas residents that Hurricane Ike happened quite some time ago. However, lawsuits over denied insurance claims continue to be filed in connection with the natural disaster. This perhaps illustrates just how difficult it can sometimes be to get an insurance claim resolved.

Thirteen lawsuits total were filed in Jefferson County District Court from Jan. 30 to Feb. 10 in connection with damage caused by Hurricane Ike. All of these new lawsuits were against the Texas Windstorm Insurance Association, and most were in regards to denied claims for roof and water damages. They involve 12 residences and one church.

]]> The reasons for the denied insurance claims were not available in a local news report, but it is certainly not uncommon for an insurance company to fight tooth and nail against an insurance claim. In the case of Hurricane Ike, it may well be that the Texas Windstorm Insurance Association is claiming that they are only responsible for wind damage cause by the storm. If this is the case, then it is often difficult for the insurance company to prove that damage to a building was done by water or some other force rather than wind.

As the plaintiffs in the various cases now move forward with their lawsuits against the insurance company, they may well benefit from the assistance of an attorney. In dealing with denied insurance claims, it can be difficult to get a straight answer from the insurance company and a lawsuit is sometimes the only way forward. For other Texas residents who are also fighting to be compensated under their insurance policy, the aid of an experienced attorney may well prove invaluable.

Source: The Southeast Texas Record, "Latest hurricane-related insurance suits filed in Jefferson County Courts," Kelly Holleran, Feb. 14, 2012

Semitrailer crushes car, knocks barrier into oncoming traffic

2012-02-24T15:00:10Z

Texas drivers have every right to be safe while they drive along the streets and highways of Dallas, but sometimes other motorists and truckers drive recklessly or negligently, putting all other drivers at risk of serious injury or death. Many Dallas residents that are injured in an accident with a tractor-trailer may have trouble proving that the driver was truly negligent and, thus, convincing the trucking company's insurance company to pay for medical bills, pain and suffering or lost wages. Working with an experienced truck accident lawyer, however, can make it easier to prove a case and get the money necessary to recover properly.

It remains to be seen if the victims of a recent truck-car accident on the Dallas North Tollway will have any problems recovering from the trucker's insurance company after his semitrailer rolled onto its side, crushing their car. In a mid-morning crash just north of Interstate 635, the driver of an 18-wheeler seems to have headed into a car while driving too fast, causing him to lose control of his vehicle. Tragically, the truck tipped over and fell on top of a Chevy Cruze.

]]> The 49-year-old driver was trapped in the vehicle after it was crushed by the much larger truck. After several good Samaritans rushed to help the man and pulled him from his car, he was taken to Parkland Hospital. Although the man's condition is not known, he was admitted with neck and back injuries.

When the truck fell it also crashed into the concrete barrier that divided the north- and southbound lanes of the Tollway, sending the barrier into the southbound lanes. Unfortunately, as the concrete divider slid into oncoming traffic, the driver of an SUV was unable to avoid hitting it. Luckily, however, witnesses reported that the two people in the SUV were not injured.

While it seems like this should be an open-and-shut case, the injured 49-year-old may need the help of an attorney to ensure that he can actually get all the money he deserves without giving up any of his legal rights.

Source: KDFW Fox 4 Dallas-Fort Worth, "18-wheeler Flips onto Car, Hits Barrier," Alice Wolke, Feb. 23, 2012