Texas Homeowners Insurance Claim Laws and Your Rights as a Policyholder

In Texas, homeowners insurance claims are governed by specific laws that protect policyholders' rights. You have the right to file a claim for damages or losses to your home.

The Texas Insurance Code sets out the rules for insurance companies to follow when handling claims. This includes requirements for prompt payment and communication.

If your claim is denied, you can appeal the decision within 60 days. You'll need to provide additional information or evidence to support your claim.

In Texas, homeowners must meet specific time-related obligations when filing an insurance claim. You must notify your insurance company of the damage or loss of your home immediately.

To ensure a smooth claims process, make a detailed list of the damage, including before-and-after photos and video. This documentation will be valuable in supporting your claim.

Do not dispose of anything related to property damage before the adjuster assigned to your case has seen or inspected it. This includes keeping receipts for temporary repairs or protective measures.

Limit any additional damage to your property, such as boarding up windows and draping tarps, to prevent further loss. Avoid making permanent repairs until the adjuster has assessed the damage.

To facilitate the claims process, accommodate the adjuster when viewing your property and accompany them on any walk-throughs or other inspections.

You don't have to accept the first settlement offer you receive, and you can continue to negotiate or enter arbitration or mediation if you believe it's too low. A lawyer can help you fight for appropriate compensation.

You have the right to reject your settlement offer and hire an insurance claim lawyer, and you should know that insurance companies have specific time limits to act on your claim in Texas. They must handle your claim promptly, with no avoidable delays.

Here are the specific time limits you should be aware of:

You must notify your insurance company of the damage or loss of your home immediately. This is crucial in getting the claims process started.

To file a claim, you need to make a detailed list of the damage, including before-and-after photos and video. This will help the adjuster assess the damage and process your claim more efficiently.

You should not dispose of anything related to property damage before the adjuster assigned to your case has seen or inspected it. This includes damaged items, receipts, and any other relevant documents.

Limit any additional damage to your property, including boarding up windows and draping tarps, to prevent further damage. This will also help the adjuster assess the damage more accurately.

Make an effort to avoid making permanent repairs, as this can affect the adjuster's assessment of the damage. Instead, focus on temporary repairs to prevent further damage.

Collect and keep all receipts related to any temporary repairs or protective measures you make. This will help you claim reimbursement for these expenses.

To ensure a thorough inspection of your property, consider hiring an insurance claims attorney. They can also advise you on what not to say to the claims adjuster to avoid potentially harming your claim.

Here's a summary of the key filing requirements:

You don't have to accept the first settlement offer you receive. If you believe it's too low, you can continue to negotiate.

A lawyer can help you fight for a fair compensation. They can describe your options and represent you in negotiations or in court.

Entering the appraisal process can be a good option. You and the insurer will each hire independent appraisers, and a third-party arbitrator will make a final decision.

If you don't agree with the arbitrator's finding, you can take your insurer to court. A lawyer can help you navigate the Alternative Dispute Resolution (ADR) process.

At Carrigan & Anderson, PLLC, they have over 40 years of experience representing the injured in Texas. They can talk to you about your options and rights.

Filing multiple claims in a short period can raise red flags with your insurer, so be cautious about making too many claims too quickly.

Texas law actually prohibits insurance companies from raising your policy premium after your first claim.

However, after your first claim, insurance companies will keep close track of the following: how many claims you've filed.

A typical home claim stays on your insurance record for five to seven years.

Filing two or more claims in that five-year period will likely result in increased home insurance premiums.

Insurance companies increase premiums or restrict coverage with each claim, just like auto coverage companies.

If your Texas homeowners insurance claim is delayed, denied, or underpaid, you have options. You can file an appeal to increase your chances of getting the compensation you need. This process can lengthen the timeline, but it may also help you get the support you deserve to restore your property and move forward.

Filing an appeal involves reviewing your policy, documenting the denial, identifying any bad faith practices, negotiating with the insurance company, and collecting additional evidence. An experienced insurance dispute attorney can guide you through this process and help you defend your rights.

If your insurer has failed to meet deadlines, they may have violated Texas's Insurance Code, entitling you to collect 18% annual interest and attorney's fees in addition to your claim amount. This is a significant consequence, and it's essential to take action promptly.

You have the right to file a complaint with the Texas Department of Insurance, hire an insurance claims lawyer, and file a lawsuit against your insurance carrier. You also have the right to be free from the burden of proof and to request new rules. It's crucial to understand these rights and responsibilities to navigate the dispute resolution process effectively.

Here are the key rights you should be aware of:

Installing safety features on your property can help lower your rates if they've increased due to multiple claims. Installing cameras, fences, fire-suppression systems, or other safety features can make a big difference.

If you've experienced multiple claims, reviewing your policy and adjusting your coverage limits may also be a good idea. This can help you avoid unnecessary costs and ensure you're adequately protected.

By taking proactive steps to prevent and prepare for potential issues, you can minimize the risk of costly claims and keep your insurance rates in check.

Installing safety features on your property can be a smart move to save on insurance costs.

Installing cameras can deter potential intruders and prevent claims.

Fences can serve as a barrier to prevent unauthorized access and potential damage to your property.

Fire-suppression systems can be a lifesaver in the event of a fire, reducing the risk of damage and costly repairs.

By taking proactive steps to secure your property, you can potentially lower your insurance rates and enjoy greater peace of mind.

Before you buy insurance, it's essential to know your rights. You have the right to truthful statements from your insurance company, which means they must provide accurate information about your policy.

You also have the right to have insurance only for replacement cost of dwelling to satisfy lenders, which can give you peace of mind when purchasing a home.

Additionally, you're protected from being denied insurance solely on your credit information, so don't worry if you have a less-than-perfect credit score.

You're also shielded from being denied insurance based on appliance-related water damage claims or water/mold damage claims, which can be a huge relief for homeowners.

Before purchasing a policy, you have the right to an independent property inspection prior to insurance coverage, which can help you avoid costly surprises down the line.

If you've been denied by two different insurance companies, you have the right to buy basic homeowners insurance from the Texas Fair Access to Insurance Requirements Plan.

You also have the right to buy windstorm or hail coverage from the Texas Windstorm Insurance Association (TWIA) if you meet certain requirements.

Here's a quick rundown of your rights before buying insurance:

Remember, knowing your rights before buying insurance can save you a lot of headaches and stress in the long run.