A motel owner in San Antonio has taken legal action against Great Lakes Insurance SE, accusing the insurer of drastically undervaluing storm damage to the property by more than $175,000. The lawsuit, filed on February 12, 2026, in a Texas federal court, centers on a hail damage claim from an April 2024 storm that reportedly brought large hail and strong winds to the area.
Vajiya Hospitality Inc., operating as Bonita Inn Motel, says Great Lakes, a Germany-based surplus lines insurer, handled the claim poorly. After the storm, the motel owner filed a damage claim, which was acknowledged by Great Lakes. The insurer sent out Davies Claims North America to assess the damage, but the parties quickly diverged on the value.
Initially, field adjuster Clayton McGrath reported estimated damage at just over $1,300, far below the motel’s $10,705 deductible. Following a joint inspection by engineers from both sides, Great Lakes’ engineer found no clear signs of hail damage on the shingles. The insurer later raised its estimate to just under $2,000. On May 15, 2025, a partial denial letter was sent to the motel owner.
However, the motel’s representatives tell a very different story. Mutual Group, Inc., hired by the motel, put the repair costs at over $177,000—nearly 89 times more than the insurer’s figure. According to the lawsuit, the motel owner reached out to Great Lakes in March 2025, hoping to resolve the dispute before filing the suit. The insurer did not respond.
The complaint accuses Great Lakes of bad faith and breaching the insurance contract. It also alleges deceptive practices and delays in claim payment under Texas insurance laws. The motel owner claims that the insurer’s investigation was biased and aimed at minimizing the payout. The filing seeks actual and consequential damages, penalties, interest, and attorney fees. A jury trial has been requested, though the case has yet to see any court rulings or responses from Great Lakes.
For those watching the insurance industry, this case highlights ongoing tensions between insurers and policyholders over hail damage estimates in Texas. The huge difference between the parties’ valuations is likely to attract the attention of lawyers and regulators alike. The motel remains unrepaired while the dispute plays out in court.