Houston Construction Insurance Claims Lawyer
When a construction project suffers damage, a delay, or a loss, the insurance claim that follows should be the safety net that makes recovery possible. Too often, though, carriers deny legitimate claims, underpay settlements, or drag out the process until a business is left bearing costs that were never supposed to be its burden. For Houston contractors, project owners, and developers, that kind of outcome is not just frustrating; it can be financially devastating.
At Fahl & Donaldson, our attorneys have represented both policyholders and insurers in construction-related insurance disputes throughout Texas for decades. With more than 100 years of combined litigation experience, we understand how these claims work from every angle, and we are prepared to pursue every dollar our clients are owed under their policies.
Construction Insurance Claims in Texas
The construction industry operates under layers of insurance coverage, and disputes can arise under any one of them. When a carrier fails to honor its obligations, the financial impact on a contractor or project owner can cascade quickly, affecting payroll, subcontractors, completion timelines, and long-term business relationships.
According to the Texas Department of Insurance, insurance companies must acknowledge a commercial claim within 15 days of filing, and must approve or deny the claim in writing within 15 business days of receiving all necessary information. Carriers that miss these deadlines may owe interest and attorney’s fees in addition to the claim itself.
Despite these protections, disputes remain common. Carriers sometimes deny claims by challenging the cause of a loss, disputing the scope of damage, or pointing to exclusions buried deep in policy language. When that happens, having an attorney who understands both construction law and insurance law is not a luxury; it is a necessity.
Types of Construction Insurance Disputes We Handle
Construction projects involve multiple overlapping policies, and each comes with its own coverage terms, exclusions, and dispute potential. Our firm has experience handling claims across all major policy types that affect the industry.
Builder’s Risk Insurance
Builder’s risk policies are designed to cover a structure and its materials during the course of construction. Disputes often arise when carriers deny claims based on alleged construction defects, improper workmanship exclusions, or disagreements about whether a loss resulted from a covered peril. Our attorneys understand how these policies are written and how to push back when a carrier attempts to use exclusions improperly.
Commercial General Liability Insurance
CGL policies protect contractors and project owners against third-party claims for bodily injury and property damage. When a carrier refuses to defend or indemnify a policyholder against such a claim, or attempts to avoid coverage through policy interpretation arguments, litigation may be necessary. We have represented clients on both sides of these disputes and know how carriers build their denial strategies.
Property Insurance for Commercial Buildings
Damage to commercial structures from storms, fire, flooding, or other covered events frequently leads to disputes over scope of loss, valuation, or the application of exclusions. Houston’s exposure to severe weather makes these disputes particularly common for the contractors, developers, and building owners we serve. Our construction law experience positions us to evaluate these claims with a level of technical understanding that general insurance practitioners may lack.
Performance and Payment Bond Claims
Surety bond disputes present a unique challenge because they involve three parties: the principal, the obligee, and the surety, each with distinct rights and obligations. When a contractor defaults or a bond claim is wrongfully denied, prompt and strategic legal action matters. Our attorneys have handled bond disputes in construction litigation throughout Texas and understand the interplay between bond obligations and underlying contract claims.
Bad Faith Insurance Claims
When a carrier does not simply disagree about a claim but actively handles it improperly, through unreasonable delays, misrepresentation of policy terms, or failure to conduct a proper investigation, Texas law may allow a policyholder to pursue a bad faith claim. Under Chapters 541 and 542 of the Texas Insurance Code, insurers that violate their obligations may be liable for damages beyond the original policy benefits, including statutory penalties and attorney’s fees. Our team monitors these situations closely and will not hesitate to pursue bad faith remedies when the conduct warrants it.
Why Construction Insurance Claims Require Specialized Counsel
Construction insurance disputes are not standard personal injury or property damage cases. They require an attorney who understands the technical nature of construction projects, the language of complex commercial policies, and the litigation strategies carriers use to protect their bottom line. A misread exclusion, an incomplete damage analysis, or a missed deadline can all significantly affect the outcome of a claim.
At Fahl & Donaldson, our business litigation experience extends directly into the insurance arena. Glenn J. Fahl has tried more than 75 cases to verdict, and R. Kelly Donaldson has successfully represented clients in construction-related disputes in both trials and arbitrations throughout the state. That depth of experience means we evaluate your claim not just as an insurance matter, but as a litigation matter from the very beginning.
Contact the Houston Construction Insurance Lawyers at Fahl & Donaldson
Construction projects represent significant investments, and when an insurance carrier fails to stand behind the coverage it sold, the consequences are real. Our attorneys are prepared to hold carriers accountable and recover what our clients are owed, whether through negotiation, arbitration, or trial.
If your construction insurance claim has been denied, underpaid, or mishandled, do not let the carrier’s timeline dictate your options. Contact our team today through our contact form to schedule a consultation.