Dallas Fire Damage Attorneys

Providing Legal Guidance to Texas Home and Business Owners Making Fire and Smoke Damage Claims

While everyone prepares for a fire, when you’re actually faced with one inside your home or business, you realize that smoke detectors and fire extinguishers can’t fully protect your property from damage. After everyone is accounted for and the fire department leaves, you’re left staring at a charred structure, smoke-damaged possessions, and potentially catastrophic water damage from putting out the fire. When you have property insurance, the insurance company should pay for the damage and help you get back on your feet. However, the claims process isn’t always as straightforward as it should be. If the insurance company is delaying your claim or is undervaluing the damage, it’s time to get legal representation.

At Stormlex Law Group, we’re dedicated to helping home and business owners across Dallas get maximum compensation for their losses. We can help you understand your benefits, prepare your claim, and ensure the insurance company does its part when you’ve faced a devastating fire. Whether you’re just starting a claim or it’s been months without a resolution from the insurance company, our legal team can help. Call [company-phone] today to schedule a time to talk.

What Type of Fire Damage Does Property Insurance Policies Usually Cover?

All property insurance policies are different, so reviewing your documents is the only way to know precisely what your policy covers. The policy will outline what type of incidents, usually referred to as covered perils, it pays for, whether there are any coverage caps, and what your deductible is. A homeowners insurance policy may cover damage caused by fires and lightning strikes, while commercial property owners may have additional coverage, such as for an explosion. Carefully review your property damage policy to ensure it covers fire damage, smoke and soot damage, and water damage from firefighting efforts.

Most policies provide coverage for both the structure itself and the contents. This allows you to get compensation for things like burned clothes and furniture. However, there are commonly limits or caps on this. If you have any expensive items, such as jewelry or artwork, you may need more coverage than the standard insurance policy provides.

A fire damages more than your structure; it can also quickly wipe out your financial security if you have to pay to live somewhere else while your home is assessed and repaired. However, some policies also pay for additional living expenses, which can alleviate this burden and provide reimbursement for a short-term rental and meals.

If you’re unsure what your policy covers after a fire or what related expenses may be reimbursed, contact Stormlex Law Group to speak to an experienced property damage attorney.

Why Are Fire Insurance Claims Often Disputed or Delayed?

You’ve been paying your premiums on time for years, and now that it’s time to make a claim, you expect the insurance company to pay out without issue. However, almost half of all property damage claims are initially denied, and even more may face delays that can keep you from repairing your property and getting back to normal. Some of the most common reasons a claim may be delayed or disputed include:

Preexisting Damage

If you have fire coverage on your policy, you are entitled to reimbursement for damages up to your coverage limit. However, the damage has to be caused by the fire. If the insurance adjuster believes that any of the damage was preexisting, such as water damage from a broken water line and not from firefighting efforts, it can cause a delay in your claim for further investigation or an outright denial.

Cause of the Fire

Insurance policies don’t generally cover fires that were intentionally set or that were caused by dangerous practices. This could include overloading electrical circuits or outlets, smoking in bed, or using a space heater next to flammable materials. Sometimes, it’s difficult to determine the exact cause of a fire, and if the fire department’s investigation report is inconclusive, it could open the door to an insurance dispute.

Valuation Disagreements

Insurance disputes often arise because the property owner and the insurance adjuster disagree on the value of the lost or damaged property. The insurance adjuster may lowball the repair cost or try to claim far more depreciation than the asset actually had. If you believe your insurer is using these tactics, an attorney can help you fight for a fair valuation.

Repeated Requests for Documentation

One of the most common delay tactics insurance companies use is to repeatedly ask for more documentation or to “misplace” paperwork. While sometimes these issues are legitimate, and no one is perfect, an insurance company that is using this as a delaying tactic may be acting in bad faith.

More Than One Adjuster Involved

There may be a legitimate reason for your claim to be transferred to another adjuster in the middle of the process. However, rotating through several adjusters can also be a delay tactic, as each person has to take the time to review the documents and get up to speed. If this is happening with your claim, our attorneys can intervene to ensure the insurance company is fulfilling its responsibilities, including the legally required deadlines for investigating and approving or denying a claim.

How Long Does It Take to Settle a Fire Damage Claim?

In Texas, property damage claims are supposed to be settled within 60 days, but it’s common for fire damage claims to take longer due to issues with documenting the damage or inventorying the contents of the home. For example, a structural engineer may have to verify that the structure is safe before an adjuster can go in to inspect the damage. Total loss claims are often processed more quickly because no inventory needs to be done. Partial loss claims can be delayed by multiple adjuster visits, disputes over the valuation of the structure and contents, and getting repair estimates from contractors.

While there are some legitimate reasons for delay, excessive and inappropriate stalling on the part of the insurance company may qualify as a bad-faith action. In most cases, the insurance company has 15 days to acknowledge your claim and another 15 days to approve or deny. However, there are extensions available to the insurance company, if necessary, and it may take legal action from an attorney to enforce the state’s deadlines.

Keep in mind that once the claim is approved, it could still be months before you’re able to move back into your property. Repairs need to be completed and inspected to ensure the dwelling is safe for occupancy again.

Does Property Insurance Pay Actual Cash Value or Replacement Cost After a Fire?

Getting fair compensation for your losses is important after a fire. However, property owners often don’t understand what the insurance company actually pays, which can leave them with less money in hand than they thought, and financial problems. There are two main types of reimbursement: actual cash value (ACV) and replacement cost value (RCV). Actual cash value is the depreciated value of the asset, which is generally calculated by taking the replacement cost and subtracting the amount of depreciation.

Whether your insurer pays out the actual cash value or the replacement cost value depends on the policy. It’s also common for the insurer to pay the actual cost value first and then any recoverable depreciation after the repairs have been completed. Our attorneys will review your policy during the claim consultation to determine what type of compensation it allows and ensure the adjuster correctly calculated your payout.

What Steps Should You Take If Your Claim Is Denied?

Your first step after you receive a notice that your claim has been denied is to ensure the insurance company gives a reason. Was the damage determined to be preexisting? Or maybe it fell under a policy exclusion. Once you understand the reason, you can start to prepare your case to fight it. If the company didn’t include a reason, you should contact an attorney immediately to determine if you may have a bad-faith claim.

If the claim was denied for something specific, such as a lack of documentation or because the adjuster made a mistake, this situation can often be fixed by getting an attorney involved and providing more information to the insurance company. Your letter should include instructions on how to appeal or challenge the denial. If this doesn’t resolve your claim, you may need to file a formal complaint with the Texas Department of Insurance or file a lawsuit against the insurance company.

Your insurance company should be a source of support after a fire, not cause you more stress. If you need help with a fire damage claim in Dallas, call Stormlex Law Group at (877) 890-6372.