The Texas Senate last night approved and sent to Gov. Abbott a controversial bill which would severely cap lawyers fees and damage awards when insurance companies are sued over hail damage, News Radio 1200 WOAI reports.
The measure is aimed at the new type of ambulance chasing attorneys, the ones that 'parachute in' after major hailstorms, like the one that hit North Bexar County in April of 2016, and use 'hard sell' techniques to convince homeowner that they are being 'ripped off' by their homeowners insurance company, encouraging them to hire them to file lawsuits.
"The passage of hailstorm lawsuit reform will rein in the hailstorm lawsuit abuse that is damaging local economies around our state and help put a stop to rapidly increasing premiums and deductibles," Lt. Gov. Dan Patrick said.
Supporters said this law will not prevent a homeowner from walking down the street to a lawyer to file suit over a legitimate claim dispute. But they said lawyers 'gaming the system' following major hailstorms are responsible for rising homeowners insurance premiums.
Opponents of the bill say it will prevent homeowners from being able to fight back against unfair denials of their legitimate claims, and will prompt insurers to be more stingy, knowing that homeowners have fewer options to fight back.