Texas could possibly be subjected to yet another legal decision within the insurance trade. The outcome could shake the industry and may only benefit the insurance companies, not the insured.

According to John C. Moritz of Corpus Christi Caller-Times, a Texas legislative panel has heard a proposal for hail litigation lawsuit reform. The standing argument is that hail litigation is grossly abused by attorneys who assist insureds and therefore, hail related settlements must be capped. The opposing side of the argument state that said attorneys are only attempting to accommodate those who feel they were not fairly compensated for home damages according to their policies. Moritz, J.C. (2016)

Moritz also asserts that hail related suits “received an average of more than $31,000 from their insurance companies […] while those who accepted what the companies offered received an average of about $7,000.”(2016). Most Texas insureds are not aware of available action regarding the claims process or their legal rights and litigative abilities concerning claim negotiation. They may also fear retaliation from insurance companies.

As reported by the Texas Consumer Bill of Rights, a consumer has a right to bring to suit those whom they feel were unable to fulfill contractual obligations. If that is the case, why place a cap on a process that takes thoughtful consideration and undergoes rigorous courtroom scrutiny by multiple legal authorities and even juries? The final decision of the panel in February will be awaited with bated breath.

Moritz, J. C. (2016). Panel considers whether to limit hail-related lawsuits. Retrieved December 05, 2016, from