Hurricane Harvey in Houston is a natural and organic alliteration. It's a terrible tragedy in Texas.
The devastation caused by Harvey in and around the Houston area was breathtaking, and the total damage may still be rated higher than the totals of death and property damage currently reported. But saying tens of billions of dollars is not a scandalous estimate.
Insurance companies – and the government, which provides flood insurance – have been inundated with Texas property insurance claims because of Harvey, but are also seeing claims Additional start from Florida following the damage caused by Hurricane Irma last week.
In Texas, lawmakers may have handcuffed Texas residents before the hurricane season, while a new law that came into effect in early September was reforming insurance lawsuits in the United States. ;State. In the spring, before the onset of the hurricane season or the onset of a major hurricane on the Texas Gulf Coast, the Texas Legislature passed a bill limiting the interest of the insurance companies if they were sued. slow or non-payment of property insurance claims.
The bill reduced the interest payment by 44%, lowering the rate from 18% to 10%. Just before the law came into force, a Texan legislator asked the governor to bring the Legislative Assembly to a special session to review the law and delay its implementation in the wake of Harvey. The argument was that insurance companies would have less incentive to pay claims quickly knowing that their interest penalties would be much lower than before.
A lawyer (of all people!) Was trying to encourage people who had suffered losses from Harvey to sue before the September 1 deadline, but not long enough to go ahead. expect reasonable payments in the wake of Harvey, who had just crossed the region and many areas were still flooded at the end of August.
Considered an aspect of tort reform, the bill was to eliminate frivolous lawsuits against insurance companies that are already suffering losses by making claims and must invest even more money to defend themselves insured. According to them, lowering the interest rate to 10 percent. 100 would be sufficient to prevent some claimants from filing a claim for late payment of the claim because the penalty imposed on the insurance company would not be as painful.
Those who oppose the bill or who advocate a delay in implementation seek to give Harvey's victims maximum flexibility to ensure that their claims are settled as quickly as possible, and should have the freedom and opportunity to file lawsuits for excessive delay in settling claims. After all, the time is money, as they say.
As the law is now in force, it will be interesting to see how Harvey and the law affect the number of claims in insurance claims as a result of the storm. Hoping that the help of other citizens will ease the burden of insurance companies, these companies will rise up and settle their claims quickly. The more time they take and the more legal fees they will accumulate, the higher our insurance premiums will be to cover those devastating losses.