A San Antonio motel owner is suing Great Lakes Insurance SE, alleging the surplus lines carrier lowballed storm damage by more than $175,000.
The lawsuit, filed on February 12, 2026, in the United States District Court for the Western District of Texas, pits Vajiya Hospitality Inc., doing business as Bonita Inn Motel, against the Germany-based non-admitted insurer over what the policyholder calls a badly mishandled hail claim - and what may amount to one of the more striking valuation gaps to land on a federal docket this year.
The dispute traces back to a storm that allegedly swept through San Antonio on or about April 9, 2024, bringing high winds and hail over one inch in diameter. The motel's owner filed a claim with Great Lakes, which acknowledged it and dispatched adjusters from Davies Claims North America to assess the damage.
Here is where things diverge - sharply.
Field adjuster Clayton McGrath initially estimated covered damage to the roof, front elevation, and right elevation at just $1,307.47, falling well short of the $10,705.00 deductible. A joint inspection followed on or around April 30, 2025, involving engineers retained by both sides. Tim Rodriguez, P.E. with Keystone Experts and Engineers, inspecting on behalf of Great Lakes, reportedly concluded that "the shingles lacked localized, rounded areas of granule loss with embedded granules, bruises, and fractures consistent with hail impacts." McGrath then revised his estimate upward - but only to $1,985.92. A partial denial letter followed on May 15, 2025, issued by Davies adjuster Russell Brenneman.
The policyholder, however, tells a very different story. Mutual Group, Inc., retained by the motel's owner, inspected the property and assessed the cost to repair and replace the damage at $177,228.61. That is roughly 89 times the insurer's figure.
According to the filing, the motel owner sent a pre-suit notice and demand to Great Lakes on March 18, 2025, requesting another chance to resolve the matter. Great Lakes allegedly did not respond.
The case raises four counts: bad faith, breach of contract, deceptive insurance practices under Texas Insurance Code Chapter 541, and late payment of claims under Chapter 542. Among the more pointed allegations is that the insurer conducted an "outcome-oriented investigation" that produced a biased and inadequate evaluation of the property's losses. The policyholder is seeking actual and consequential damages, statutory damages of 18% of the claim, treble damages for alleged knowing conduct, prejudgment and post-judgment interest, and attorney fees.
A jury trial has been requested. No determination has been made on any of the claims, and Great Lakes has not yet responded in court.
For insurance professionals, the case is worth watching - not necessarily for the dollar amount, which is modest by industry standards, but for what it signals about the ongoing friction between carrier-side and policyholder-side damage assessments in Texas hail litigation. The 89-to-1 gap between estimates is the kind of number that tends to draw attention - from regulators, plaintiff attorneys, and industry observers alike.
The property, according to the filing, remains unrepaired.
