Insurance Claim Support for Texas Property Managers
Property managers are often among the first people dealing with the consequences of significant property damage.
When an apartment complex, rental property, condominium development, retail center, office building, or other managed property suffers damage from hail, wind, fire, water, hurricanes, or another covered event, the property manager may find themselves coordinating emergency repairs, communicating with tenants, gathering documentation, working with contractors, and assisting the property owner with an insurance claim all while continuing to manage the property itself.
When an insurance claim becomes delayed, denied, or underpaid, Herrera PLLC can step in to evaluate the dispute and represent the insured property owner in pursuing available insurance benefits and other remedies.
Founder Jonathan Herrera spent more than a decade handling insurance claims before becoming an attorney, including work as a licensed Executive General Adjuster. That experience provides Herrera PLLC with a practical understanding of how property claims are investigated, estimated, documented, adjusted, and resolved.
Property Insurance Claims Affect More Than the Building
For a property manager, significant property damage creates immediate operational problems.
Tenants may need temporary accommodations. Units can become uninhabitable. Businesses may be unable to operate. Emergency mitigation may be necessary. Contractors need access. Owners want answers. Meanwhile, the insurance company may be conducting its own investigation and requesting documents, estimates, photographs, inspections, and other information.
Depending upon the property and policy, an insurance claim may involve:
- Building and structural damage;
- Roofing and exterior systems;
- Water mitigation;
- Fire and smoke remediation;
- HVAC and mechanical equipment;
- Interior finishes;
- Contents and business personal property;
- Code-related repairs;
- Loss of rents or rental income;
- Business interruption;
- Extra expenses; and
- Other covered property losses.
A disagreement over any one of those components can materially affect the amount ultimately available to repair the property and restore operations.
Property Insurance Claims Herrera PLLC Handles
Apartment and Multifamily Property Claims
Apartment complexes and other multifamily properties can present complicated insurance losses because damage may affect numerous units, common areas, roofing systems, exterior components, mechanical systems, and tenant operations at the same time.
A disputed claim may involve scope of repairs, pricing, depreciation, matching, causation, loss of rents, water mitigation, code requirements, or the appropriate repair methodology.
Commercial Property Insurance Claims
Herrera PLLC handles insurance disputes involving commercial buildings and other income-producing properties.
These claims may involve damage to offices, retail properties, warehouses, mixed-use developments, industrial properties, and other commercial real estate.
Rental Property Insurance Claims
A significant loss involving a single-family or other rental property may create both physical property damage and lost rental income.
The applicable coverage depends upon the particular policy, endorsements, cause of loss, and circumstances surrounding the claim.
Condominium and Community Property Claims
Claims involving condominium developments and community associations may raise additional questions concerning what property is insured by the association, what is the responsibility of individual unit owners, and how governing documents interact with the applicable insurance coverage.
Hail, Wind, and Hurricane Claims
Severe Texas weather can result in widespread damage to roofing systems, exterior finishes, windows, HVAC equipment, fencing, and other building components.
Disputes may involve whether the observed damage resulted from the storm, whether components can reasonably be repaired, the appropriate scope of replacement, and how the loss should be valued.
Fire and Smoke Damage Claims
A fire can affect much more than the immediate area of origin.
Insurance claims may include structural repairs, smoke and soot remediation, contents, electrical systems, HVAC equipment, temporary measures, loss of rents, and other covered expenses.
Water Damage Claims
Plumbing failures, roof leaks, mechanical failures, appliance leaks, sprinkler-system losses, and storm-related water intrusion can affect multiple units and building systems.
Water claims frequently require careful analysis of causation, duration, resulting damage, mitigation expenses, mold, and applicable exclusions or limitations.
When Should a Property Manager Involve an Insurance Attorney?
Not every insurance claim requires an attorney.
Legal involvement may become appropriate when:
- A significant portion of the claim has been denied;
- The insurer’s estimate is materially below documented repair costs;
- The insurer disputes the cause of damage;
- Coverage exclusions or limitations are being asserted;
- The carrier disputes whether repairs or replacement are necessary;
- A claim remains unresolved after repeated inspections or submissions;
- There is a substantial disagreement concerning depreciation or valuation;
- Loss-of-rent or business-income damages are disputed;
- Appraisal or litigation is being considered; or
- The property owner needs advice concerning its contractual or statutory rights.
The earlier the actual source of the disagreement is identified, the easier it is to determine whether the dispute involves coverage, causation, scope, valuation, or some combination of those issues.
Texas Insurance Law and Commercial Property Claims
Texas property insurance disputes may involve both contractual and statutory rights.
The Insurance Policy Comes First
The insurance policy determines the coverage purchased by the property owner.
A proper claim evaluation should therefore consider the complete policy, including:
- Declarations;
- Coverage forms;
- Endorsements;
- Exclusions;
- Deductibles;
- Valuation provisions;
- Duties after loss;
- Proof-of-loss requirements;
- Appraisal provisions; and
- Any contractual deadlines affecting the claim.
An insurer’s estimate or coverage letter should be evaluated against the actual policy language, not treated as the final word on what the policy provides.
Texas Insurance Code Chapter 541
Chapter 541 of the Texas Insurance Code addresses prohibited unfair or deceptive insurance practices.
Section 541.060 identifies certain unfair settlement practices, including misrepresenting material facts or policy provisions relating to coverage and failing to attempt in good faith to effectuate a prompt, fair, and equitable settlement when an insurer’s liability has become reasonably clear.
Whether a particular claim-handling decision violates Chapter 541 depends upon the facts, policy language, insurer’s conduct, and applicable Texas law.
Texas Prompt Payment of Claims Act
Texas Insurance Code Chapter 542 establishes deadlines governing an insurer’s acknowledgment, investigation, acceptance or rejection, and payment of certain claims.
The available remedies and applicable deadlines depend upon the circumstances and type of claim.
Weather-related property claims may also implicate Chapter 542A, which contains provisions affecting certain first-party property claims arising from hail, wind, hurricanes, tornadoes, rainstorms, and other specified forces of nature.
Chapter 542A Property Claims
For claims within its scope, Chapter 542A establishes important procedures concerning pre-suit notice, inspections, attorney’s fees, and other aspects of litigation.
Property owners considering litigation over a qualifying weather-related insurance claim should therefore evaluate Chapter 542A before suit is filed.
Why Property Managers Work With Herrera PLLC
A Former Insurance Adjuster’s Perspective
Before founding Herrera PLLC, Jonathan Herrera spent more than a decade handling insurance claims, including work as a licensed Executive General Adjuster.
That experience included property damage and construction-related claims involving contractors, engineers, consultants, estimates, repair scopes, and coverage issues.
Herrera PLLC can therefore evaluate not only the legal issues surrounding a disputed claim but also the adjusting process behind it including how the loss was investigated, scoped, estimated, documented, and valued.
Strategy Built Around the Property and the Claim
A single-family rental property, multifamily apartment complex, condominium development, and commercial building can present very different coverage and operational issues.
Herrera PLLC evaluates the strategy based upon the particular property, policy, cause of loss, damages, claim history, and business considerations involved.
Direct Communication
Property insurance disputes can involve owners, property managers, contractors, public adjusters, engineers, accountants, and other professionals.
Herrera PLLC works to maintain clear communication among the appropriate parties while providing the client with direct access to counsel throughout the representation.
Working With Public Adjusters on Texas Property Claims
Herrera PLLC also works with Texas public adjusters when a property claim develops legal or coverage issues requiring attorney involvement.
Public adjusters can provide valuable assistance in documenting and presenting property claims within the scope permitted by Texas law. When a dispute develops into a legal question such as interpretation of policy language, allegations of statutory violations, preparation for litigation, or other matters requiring legal representation the insured may benefit from involving counsel.
Texas law regulates public adjusting separately from the practice of law. A licensed public insurance adjuster may assist an insured with a claim within the authority provided by the Texas Insurance Code, but the statute does not authorize a public adjuster to engage in the unauthorized practice of law.
Herrera PLLC can work alongside the insured’s existing public adjuster, contractors, engineers, and other claim professionals while handling the legal components of the dispute.
How to Refer a Property Insurance Claim to Herrera PLLC
Whether you are a property manager assisting an owner with a disputed claim or a public adjuster whose client’s claim has developed legal issues, the referral process is straightforward.
- Provide Basic Claim Information
Provide the property location, insured’s name, insurance carrier, date and cause of loss, and a brief description of the dispute.
- Provide Available Claim Documentation
Useful documentation may include:
- Insurance policy and declarations;
- Coverage letters;
- Carrier estimates;
- Public adjuster or contractor estimates;
- Photographs and videos;
- Engineering reports;
- Proofs of loss;
- Claim correspondence; and
- Other documentation relevant to the dispute.
- Herrera PLLC Evaluates the Matter
The firm can review the available information, identify the nature of the dispute, and determine whether the matter is appropriate for representation.
When Herrera PLLC accepts the representation, the insured property owner or other appropriate insured party becomes the client, while the firm can continue coordinating with the property manager, public adjuster, and other authorized claim professionals as appropriate.
Refer a Texas Property Insurance Claim to Herrera PLLC
Herrera PLLC represents property owners and other insureds throughout Texas in disputes involving commercial property insurance, apartment and multifamily claims, rental properties, hail and wind damage, hurricane claims, fire and smoke damage, water damage, loss of rents, and other significant property losses.
If you are a Texas property manager or public adjuster working with a property owner whose insurance claim has become delayed, denied, or underpaid, contact Herrera PLLC to discuss the matter.
Herrera PLLC
2339 Commerce Street, #172
Houston, Texas 77002
832-891-3210
Frequently Asked Questions
It depends upon the property manager's authority and the circumstances.
Because the insurance rights ordinarily belong to the named insured or other party possessing rights under the policy, the appropriate client and authority to retain counsel should be confirmed before representation begins.
A property manager can nevertheless play an important role in identifying the dispute, preserving documentation, coordinating access to the property, and connecting the property owner with counsel.
Yes. When appropriate and authorized by the client, an attorney can coordinate with the public adjuster and other professionals already involved in documenting the loss.
The attorney and public adjuster perform different roles, and each should remain within the scope of his or her professional authority.
The most useful starting documents generally include the insurance policy, carrier coverage letters, carrier estimate, competing repair estimate, photographs, engineering reports, proof of loss, and relevant correspondence.
Additional records may be requested depending upon the nature of the dispute.
A denial can be evaluated against the policy language and available evidence.
Depending upon the circumstances, additional investigation, expert analysis, negotiation, appraisal, or litigation may be appropriate.
Potentially.
Commercial and rental property policies may provide coverage for qualifying lost rental income or business-income losses resulting from a covered loss. The amount and duration of available coverage depend upon the specific policy language and circumstances.
Disclaimer: The information on this page is provided for general educational purposes only and does not constitute legal advice. Every matter depends upon its particular facts and policy language. Past results do not guarantee future outcomes.