When you file an insurance claim for damage covered by your policy, you fully expect to receive financial support in accordance with the agreement. However, your insurance company might act in bad faith by attempting to avoid paying out on your claim.
You can and should pursue legal action against an insurer that acts in bad faith against you. The insurance company might then offer a settlement so as to avoid dealing with the matter in court. However, the company might continue to act in bad faith by offering less than you deserve in the settlement.
How can you know when your insurer is lowballing you?
At the very least, your insurer should cover the cost of the damage which your original claim concerns. You can also reasonably expect to receive compensation for the wrongful behavior of acting in bad faith toward you. A lesser amount is a lowball offer that you should not take lightly.
Can you get more money in court?
If your insurance company offers an unacceptable bad faith settlement, you might consider taking the case before the Texas small claims court. Keep in mind that there is no guarantee of receiving greater compensation through litigation, and you also must pay a filing fee and other related expenses. However, going to trial might be the only way to secure the financial support you need after a disaster.
Rejecting a lowball settlement might seem like the appropriate response as a matter of principle. You should first consider if prolonging the process and incurring the cost of litigation is worth your while in the long run.