What to Do If Your Insurance Company Denies Your Property Damage Claim in Texas

You paid your premiums for years, expecting your insurance company to be there when you needed it. Then a storm, fire, or flood damaged your home or business. You filed a claim, and the answer came back: denied.

A denial letter can feel final, but it often isn’t. Texas law gives policyholders important rights, and many denied claims can be challenged. Here’s what to do if your insurance company denies your property damage claim in Texas.

Common Reasons Property Damage Claims Are Denied

Insurers deny claims for many reasons. Some are valid. Others are not. Common reasons include:

• Policy exclusions: The insurer says the damage falls under an exclusion, such as flood or wear and tear.
• Pre-existing damage: The insurer claims the damage happened before the policy period or before the storm.
• Late notice: The insurer says the claim wasn’t reported quickly enough.
• Insufficient documentation: The insurer says there isn’t enough proof of the damage or its cause.
• Disputes over the cause of loss: For example, the insurer blames hail damage on age or poor maintenance.

Understanding the stated reason is the first step toward deciding whether to challenge it.

Step 1: Read the Denial Letter Carefully

Under the Texas Insurance Code, if an insurer rejects a claim, it must tell you in writing and explain the reasons. Read the letter closely and note:

• The specific reason given for the denial
• Any policy language the insurer relies on
• Any deadlines mentioned in the letter

If the letter is vague or doesn’t cite specific policy terms, that may be worth questioning.

Step 2: Review Your Policy

Get a full copy of your insurance policy, including all endorsements, and compare it with the reason for denial. Policies are often long and confusing, and exclusions don’t always apply the way the insurer says they do. Pay close attention to:

• What types of damage are covered
• Any exclusions and their exact wording
• Notice and proof-of-loss requirements
• The appraisal clause, if your policy has one
• Any deadline for filing a lawsuit

Step 3: Gather and Preserve Evidence

Strong evidence can make the difference in a disputed claim. Collect and keep:

• Photos and videos of the damage
• Repair estimates and receipts
• Weather reports for the date of loss
• All letters, emails, and notes from conversations with the insurer
• The adjuster’s report, if you can get a copy

Don’t throw away damaged materials until you’ve documented them, unless they pose a safety risk.

Step 4: Know the Insurer’s Deadlines

The Texas Prompt Payment of Claims Act, found in Chapter 542 of the Texas Insurance Code, sets deadlines insurers must follow. In general, once an insurer receives the items it needs to evaluate a claim, it has 15 business days to accept or reject it. It can extend that period by giving written notice of the reasons. If it agrees to pay, payment is generally due within five business days.

Insurers that don’t follow these rules may owe interest and attorney’s fees on top of the claim amount. Learn more about our first-party insurance claim services.

Step 5: Consider Your Options for Challenging the Denial

Depending on your situation, options may include:

• Asking the insurer to reconsider: Submit additional evidence or point out errors in the insurer’s reasoning.
• Appraisal: Many policies include an appraisal clause to resolve disagreements about the amount of a loss. Appraisal generally addresses how much the damage is worth, not whether it’s covered.
• Filing a complaint with the Texas Department of Insurance: TDI accepts consumer complaints about insurers.
• Filing a lawsuit: If the insurer wrongfully denied or underpaid your claim, you may be able to sue for breach of the policy and violations of the Texas Insurance Code.

Watch Out for Legal Deadlines

Texas law has strict rules for insurance lawsuits. For many property claims, you must give the insurer written notice at least 61 days before filing suit, including the amount you believe is owed. Many policies also limit how long you have to file a lawsuit. Texas law allows insurers to shorten that period to as little as two years after the claim accrues, often measured from the date of denial.

Missing a deadline can end your right to recover, so it’s important to act quickly.

Claims We Help With

Our attorneys represent Houston-area homeowners and businesses with denied and underpaid claims, including:

• Hurricane damage claims
• Flood damage claims
• Fire damage claims
• Hail damage claims

Frequently Asked Questions

Can I fight a denied insurance claim in Texas?
Yes. Many denials can be challenged by providing more evidence, using the appraisal process, filing a complaint with TDI, or filing a lawsuit if the denial was wrongful.

How long do I have to sue my insurance company in Texas?
It depends on your policy and the type of claim. Many policies allow two years from the date the claim is denied, and Texas law requires 61 days’ written notice before filing many property damage lawsuits. Talk with an attorney as soon as possible.

Does my insurance company have to explain why it denied my claim?
Yes. Under the Texas Insurance Code, an insurer that rejects a claim must notify you in writing and state the reasons for the rejection.

Talk to a Houston Insurance Claim Lawyer

A denied claim doesn’t have to be the end of the road. The attorneys at Patout, Fontana, and Dellis PLLC, including John J. Patout Jr., Anthony Fontana, and Cameron B. Dellis, help Houston-area policyholders fight back when insurers deny or underpay valid claims.

Call 346-460-5528, submit your claim, or contact us to discuss your case.

Disclaimer: This blog is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Every claim is different, so speak with an attorney about your situation.