# 3 Signs of a Bad Faith Insurer | Attorney Brian White **Table of Contents***[*Expand*]* 1. Lack of a Reasonable Explanation for a Denial 2. Unnecessary Delays in Processing Your Claim or Payment 3. Absurdly Low Settlement Offer 4. Contact theHouston Personal Injury Lawyers at Attorney Brian White Personal Injury Lawyers For Help The law obligates insurance companies to handle claims and policyholders with good faith. Unfortunately, not all insurers take the duty of good faith seriously. Some try to unfairly deny or delay claims to save money. It is for this reason that [bad faith insurance claims](https://attorneybrianwhite.com/houston-tx/insurance-bad-faith-lawyer/) exist – to enable claimants to fight back against negligent insurance companies. In a bad faith claim, you could receive greater compensation than the original value of your claim. Use these three signs to recognize a bad faith insurer and to know when to take legal action. ## Lack of a Reasonable Explanation for a Denial Federal laws require all insurers to notify claimants if they deny claims. These notifications must include an explanation for the denial. Lack of an explanation altogether could be grounds for a bad faith claim, but this does not happen very often. Instead, insurance companies will give reasons that aim to exploit loopholes or confusing legal jargon in your insurance contract. For example, an insurance company may deny flood damage by calling it “wind-driven rain” and reference a clause in your contract that’s several pages long. If you cannot make out the specifics of a provision in your insurance policy on your own, trust a Houston injury attorney to do so for you. Unlike the insurance company, an attorney wants you to recover the maximum amount possible for your damages. Have a lawyer review your contract and the letter that explains the denial. You might have a bad faith claim if the reason does not make sense for your situation, or if you disagree with the company’s logic. For a legal consultation call [(713) 500-5000](tel:+17135005000) ## Unnecessary Delays in Processing Your Claim or Payment Another way an insurance company might be guilty of bad faith is if it intentionally draws out the claims process to delay paying policyholders. A good faith insurer will take prompt action to speak with you, investigate your accident, and come to a conclusion about your claim. If an insurance company continuously puts off an accident investigation, makes you jump through hoops to file a claim, keeps passing your case to different adjusters, or simply refuses to pay your settlement, contact an attorney A bad-faith insurer might delay the investigation process in an effort to deny you recovery for damages. For example, say your house burned down but the insurance company takes a month to visit the location and assess the damages. In that time, it’s rained and you now have fire *and* flood damage. The insurance company tries to offer you less for your claim because you failed to prevent further damage to your home after the fire. This could be an example of insurance bad faith, because if the insurer had acted promptly, the flood damage might not have occurred. Asking for too much paperwork or documentation is another bad-faith tactic meant to delay your claim. ## Absurdly Low Settlement Offer Insurance companies are notorious for offering less than a claim is actually worth. Always seek a second opinion from a trustworthy attorney before saying yes to a settlement offer. It may surprise you to find the initial amount is much less than a lawyer believes you could get through negotiations or a personal injury claim. Often, retaining an attorney will immediately result in a higher settlement award, as the insurance company knows you have the power to take your claim to court, if necessary. Do not say yes to your first settlement offer unless you’ve spoken to a lawyer who gives his or her professional approval. Saying yes, even during an over-the-phone conversation with an adjuster, is a legally binding agreement with the insurance company. It may be difficult or impossible to get more for your claim after you’ve accepted the initial offer. Protect yourself from lowball settlement awards and insurance bad faith by retaining a personal injury attorney in [Texas](https://www.texas.gov/). [Click to contact](/contact-us/) us today ## Contact theHouston Personal Injury Lawyers at Attorney Brian White Personal Injury Lawyers For Help For more information, [contact](https://attorneybrianwhite.com/contact-us/) the [Houston](https://www.houstontx.gov/) personal injury law firm of Attorney Brian White Personal Injury Lawyers by calling [(713) 500-5000](tel:+17135005000). Our offices Houston — Greenway/Upper Kirby 3120 Southwest Freeway, Suite 350 Houston, TX 77098 Open 24 hours daily Call [(713) 364-1466](tel:+17133641466) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%203120%20Southwest%20Freeway%2C%20Suite%20350%2C%20Houston%2C%20TX%2077098) Houston — East Freeway 11811 East Freeway, Suite 630-06 Houston, TX 77029 Open 24 hours daily Call [(713) 609-1893](tel:+17136091893) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%2011811%20East%20Freeway%2C%20Suite%20630-06%2C%20Houston%2C%20TX%2077029) Houston — South Loop 2600 South Loop West, Suite 293 Houston, TX 77054 Open 24 hours daily Call [(713) 281-4904](tel:+17132814904) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%202600%20South%20Loop%20West%2C%20Suite%20293%2C%20Houston%2C%20TX%2077054) Houston — Katy Freeway 11511 Katy Fwy, Suite 515 Houston, TX 77079 Open 24 hours daily Call [(713) 909-7537](tel:+17139097537) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%2011511%20Katy%20Fwy%2C%20Suite%20515%2C%20Houston%2C%20TX%2077079) Houston — Clear Lake 1300 Bay Area Blvd, Suite B268 Houston, TX 77058 By appointment only Call [(936) 508-2854](tel:+19365082854) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%201300%20Bay%20Area%20Blvd%2C%20Suite%20B268%2C%20Houston%2C%20TX%2077058) The Woodlands 1776 Woodstead Ct, Ste. 203 The Woodlands, TX 77380 By appointment only Call [(281) 843-9777](tel:+12818439777) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%201776%20Woodstead%20Ct%2C%20Ste.%20203%2C%20The%20Woodlands%2C%20TX%2077380) Champion Forest (Cypress) 4606 FM 1960 Rd W, Ste. 444 Houston, TX 77069 By appointment only Call [(281) 843-9777](tel:+12818439777) [Directions](https://www.google.com/maps/dir/?api=1&destination=Attorney%20Brian%20White%20Personal%20Injury%20Lawyers%2C%204606%20FM%201960%20Rd%20W%2C%20Ste.%20444%2C%20Houston%2C%20TX%2077069)   Call or Text [(713) 500-5000](tel:+17135005000) or Complete a [Case Evaluation Form](/contact-us/) Bad Faith Insurance Blog Posts: [![Bad Faith Insurance in Texas](https://attorneybrianwhite.com/wp-content/uploads/2025/07/Bad-Faith-Insurance-in-Texas-300x200.jpg)](https://attorneybrianwhite.com/blog/bad-faith-insurance-in-texas/) [Bad Faith Insurance in Texas](https://attorneybrianwhite.com/blog/bad-faith-insurance-in-texas/) When you buy insurance, you trust the company to be there for you in times of need. Whether it’s after a car [![Denial of Insurance Claims in Texas](https://attorneybrianwhite.com/wp-content/uploads/2018/05/denial-of-insurance-claims-300x200.jpg)](https://attorneybrianwhite.com/blog/denial-of-insurance-claims/) [Denial of Insurance Claims](https://attorneybrianwhite.com/blog/denial-of-insurance-claims/) The recovery process doesn’t have to end if an insurance company denies your claim. You can – and should – [![Bad Faith and Third-Party Insurance Claims in Texas](https://attorneybrianwhite.com/wp-content/themes/brian-white/assets/app/img/default-thumb.webp)](https://attorneybrianwhite.com/blog/bad-faith-and-third-party-insurance-claims-in-texas/) [Bad Faith and Third-Party Insurance Claims in Texas](https://attorneybrianwhite.com/blog/bad-faith-and-third-party-insurance-claims-in-texas/) Most individuals who file personal injury claims within the state of Texas will have to deal with insurance companies --- Source: https://attorneybrianwhite.com/blog/3-signs-of-a-bad-faith-insurer/