A Texas insurer is under fire after being accused of stonewalling and underpaying a seven-figure commercial property claim tied to storm damage.
Line Cutterz, LLC, a retail business based in West Columbia, Texas, has taken Westchester Surplus Lines Insurance Company to federal court, alleging a pattern of delays, denials, and bad faith in handling a major property insurance claim. The lawsuit, filed in the United States District Court for the Southern District of Texas, centers on a series of storms that battered the company’s retail property in 2024, and the insurer’s subsequent refusal to pay what the business claims it is owed.
According to the complaint, Line Cutterz purchased a comprehensive commercial property insurance policy from Westchester, providing over a million dollars in coverage for its metal-framed retail building at 110 South 17th Street, West Columbia, Texas. The policy, in effect from February 23, 2023 to February 23, 2024, included coverage for damages caused by wind and hail.
Trouble began on March 15, 2024, when a wind and hailstorm struck the property, causing what Line Cutterz describes as significant damage to the roof system, flooring, and more. The company says it promptly filed a claim with Westchester, expecting the insurer to honor its contract and cover the losses.
Instead, the complaint alleges, Westchester’s response was marked by a series of delays and shifting personnel. Westchester confirmed receipt of the notice of loss on April 24, 2024, and assigned its first adjuster the following day. Over the next several weeks, Westchester assigned additional adjusters and third-party consultants to inspect the property. Line Cutterz claims these inspections were cursory and ignored obvious wind and hail-related damages. The complaint further asserts that Westchester failed to retain a qualified consultant to properly evaluate the damages.
On June 24, 2024, Westchester issued a denial letter stating: “We have concluded our investigation of your claim and determined that there was windstorm or hail damage, or other covered cause of loss to the roof or exterior of your building.” However, the letter proceeded to “regrettably deny” the claim.
After Hurricane Beryl struck, causing more widespread water intrusion from the previously damaged roof system, Line Cutterz alleges that Westchester again delayed the claim process. The insurer reassigned adjusters and brought in new third-party inspectors, but by December 2024, Line Cutterz still had not received a formal decision about the Hurricane Beryl claim. The company requested a reassignment of the adjuster, and Westchester cited “staffing and internal transfers” for the ongoing delay.
Frustrated by what it describes as a “grossly inadequate investigation and outcome-oriented analysis,” Line Cutterz says it was forced to hire its own consultants and legal counsel to pursue the claim. The complaint accuses Westchester of continuing to wrongfully deny and underpay the claim, acknowledging only a fraction of the damages and failing to cover clear loss under the policy.
The lawsuit details alleged violations of the Texas Insurance Code, including failure to effectuate a prompt, fair, and equitable settlement, failure to adopt reasonable standards for investigating claims, and misrepresentation of the insurance policy. It also accuses Westchester of breach of contract, breach of the duty of good faith and fair dealing, and violations of the Texas Deceptive Trade Practices Act.
Line Cutterz seeks actual damages, exemplary damages, statutory interest, and attorneys’ fees. The complaint states that Westchester’s actions have resulted in damages in excess of the court’s jurisdictional limits, including consequential damages to the business.
All allegations in the complaint remain unproven, and Westchester has not yet filed a response in court. The case is at the complaint stage, with a jury trial demanded by Line Cutterz.
