Texas City couple says insurer refused to cover water leak

GALVESTON - Texas City residents Maria and Wayne Castillo allege they did not receive proper coverage for a water leak at their residence last year and are pursuing legal action, recent court records show.

A lawsuit filed Nov. 14 in Galveston County District Court asserts American National Lloyds Insurance Co. failed to pay the Castillos all of the benefits owed under the terms of their policy, which the plaintiffs insist is supposed to cover events such as the aforementioned leak.

Tailored Adjustment Services Inc. and claims adjusters Alan Campbell, Aristotelis Westerlage and Denise Evans are also being sued.

The plaintiffs explain that a "sudden and accidental" discharge of water from a water heater on Aug. 9, 2011, caused extensive damage to the house and personal belongings.

Afterwards, they informed the insurer about the subject leak, provided necessary information and allowed access to the residence.

Evans served as the primary contact throughout the claims adjustment process, which included an Tailored Adjustment inspection conducted by Campbell three days after the burst.

The suit shows Campbell under-scoped and under-valued the property damage "and thus under-reported the damage to [the insurer] in his estimate", adding Westerlage, another Tailored Adjustment employee, did an inspection a month later that yielded the same results.

According to the original petition, a third inspection revealed more damage yet the insurer tendered an amount that "still did not take into account all of the damages to the plaintiffs' property."

The Castillos assert they did they everything to comply with their policy's requirements, but they have not received full payment.

A jury trial is requested.

Attorney Elizabeth Sandoval with Arguello Hope & Associates P.L.L.C. in Houston is representing the plaintiffs, and Galveston County 212th District Court Judge Susan Criss is presiding over the case.

Case No. 12-CV-2783