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SOUTHEAST TEXAS RECORD

Tuesday, April 23, 2024

Hitchcock Independent School District sues property insurance carriers over failure to pay storm claim

Lawsuits
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GALVESTON — The Hitchcock Independent School District (HISD) is suing several of their insurance carriers alleging they underestimated the damage done to their buildings after a 2017 storm. 

The HISD filed a complaint  March 23 in the Galveston County District Court against Arthur Gallagher & Co., Arthur Gallagher Service Company LLC and CRC Insurance Services Inc., alleging negligence, breach of fiduciary duty, violation of the Texas Deceptive Trade Practices-Consumer Protection Act, fraud and breach of contract. 

Several of the HISD properties that were covered by multiple insurance polices through the defendants suffered wind and flood damage on Aug. 30, 2017 when a severe storm moved through the Galveston area. The HISD alleges that the defendant insurance companies underestimated the damage to their buildings, failed to properly inspect the properties and ignored areas of damage. HISD also cliams the defendants failed to disclose the arbitration provisions in their policies. 

HISD seeks monetary relief between $4 million and $10 million, interest, trial by jury and all other just relief. They are represented Shaun Hodge Law Firm PLLC in Galveston. 

Galveston County District Court case number 20-CV-0455

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