Since hailstorms are the new car wrecks, the Texas House today moved to put the brakes on the modern equivalent of the ambulance chasing lawyers, News Radio 1200 WOAI reports.
The bill will limit the damages that can be won against insurance companies which are sued over hail and wind storm coverage, and, more importantly, severely limit the lawyers fees that plaintiffs can collect from the law firms, even if they win.
"As massive hailstorms have pounded the state in recent years, we've seen homeowners with storm damage become victimized again by opportunistic lawyers and others who see the consumer's misfortune as a payday for themselves," said Beaman Floyd, Executive Director of the Texas Coalition for Affordable Insurance Solutions.;
Supporters of House Bill 1774, which now goes to the Texas Senate, say after hailstorms, like the $1.5 billion storm that hit north San Antonio in April of 2016, lawyers 'parachute in' from elsewhere, and knock on doors, falsely telling homeowners that their insurance companies are short changing them, and promising huge rewards if they sue.
Floyd says the homeowners generally see very little, except for everybody seeing higher homeowners insurance bills to cover the lawyers fees pocketed by the attorneys.
Supporters say this is not a case of a homeowner 'walking down the street to a local attorney. This is legal business which is created by the lawyers.
Opponents say the bill will prompt insurance companies to scrimp on homeowners claims, knowing that there is no major downside to doing so.