Reported Practice of adjusters requiring a signed acknowledgement concerning the specific cause of hurricane damage

Home Bulletins Bulletins for 2005 b-0059-05.html September 28, 2005 To:   ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS WRITING PROPERTY AND CASUALTY INSURANCE IN THE STATE OF TEXAS AND TO AGENTS AND REPRESENTATIVES AND THE PUBLIC GENERALLY Re:   REPORTED PRACTICE OF ADJUSTERS REQUIRING A SIGNED ACKNOWLEDGMENT CONCERNING THE SPECIFIC CAUSE OF HURRICANE DAMAGE It has come to the attention of the Texas Department of Insurance (TDI) that certain insurance adjusters may be approaching people whose homes have been damaged by wind and/or storm surge and offering checks for living expenses in return for the homeowner's signing an acknowledgment that the claim was for "flood damage." Homeowners policies that provide coverage for additional living expenses do not require a policyholder to acknowledge coverage under any particular policy before being eligible to receive benefits. The Texas Insurance Code has specific provisions concerning claims settlement practices which carriers must follow. Further, under both statutory and common law, carriers have a duty to deal fairly and in good faith with their policyholders. TDI will monitor carriers for compliance. Questions regarding this bulletin may be directed to the Property and Casualty Program, at 512-322-2266. For more information, contact: ChiefClerk@tdi.texas.gov Last updated: 1/30/2018