When disaster strikes, you expect your insurance company to be there when you need them the most. Unfortunately, many Texas homeowners and business owners learn the hard way that getting payment for a legitimate property damage claim isn’t always that simple.
Lowball offers, delays, and outright denials are common tactics insurers use to protect their bottom line. However, under Texas law, you have rights, and you don’t have to settle for an unfair outcome.
At The Johnson Law Firm, we’ve helped clients across San Antonio and beyond stand up to insurance companies that failed to act in good faith. Here’s what you need to know if your property claim is delayed or denied.
1. Understand Why Insurance Companies Delay or Deny Claims
Insurance companies are required to investigate and process claims promptly under the Texas Insurance Code. However, issues often arise for reasons such as:
- Incomplete or missing documentation
- Disputes over the cause or extent of damage
- Alleged policy exclusions
- Claims filed after a deadline
- Insurance adjusters underestimating repair costs
Sometimes, providers have legitimate reasons. However often their reasons are excuses designed to discourage you getting what you’re owed. When an insurer fails to pay in a reasonable amount of time, underpays, or outright denies a valid claim, you have a right to seek additional compensation.
2. Take Immediate Steps to Protect Your Claim
When handling property loss, documentation is always key. Here’s how to protect your rights from day one:
- Report the damage promptly. Most insurance policies require you to notify them within a specific time frame.
- Photograph and record everything. Take detailed pictures and videos before making any temporary repairs.
- Keep receipts. Save invoices for repairs, hotel stays and any other expenses related to your loss.
- Communicate in writing. Whenever possible, contact your insurance representative in writing instead of calling. Written records are important to making a case. If your claim is denied, request a written explanation citing the specific policy provisions they’re relying on.
3. Know Your Rights Under Texas Law
Texas law holds insurers to strict standards for fair and timely claim handling. Specifically, the Texas Prompt Payment of Claims Act requires:
- An acknowledgment of your claims within 15 days of filing.
- A decision to accept or deny a claim within 15 business days after receiving all necessary information.
- Payment within 5 business days after agreeing to pay your claim.
If your insurance company misses these deadlines without a good reason, you may be entitled to additional compensation. Under Texas law, insurers are also required to handle claims in good faith. This means that they must investigate thoroughly, communicate honestly throughout the process and avoid unnecessary delays.
4. If Your Claim Is Denied, Don’t Give Up
A denial isn’t necessarily the end of the road. You have several options available to you:
- Request a reconsideration. Sometimes, denials happen because of incomplete information. Provide any missing documentation, repair estimates or expert reports. Additionally, contact the insurer to ask them to reopen the claim.
- File a complaint with the Texas Department of Insurance (TDI). The TDI is allowed to investigate whether insurance providers followed proper protocol and may pressure them to act fairly.
- If your insurer continues to delay, deny or underpay, consider consulting a property damage attorney. You may be able to sue for breach of contract or bad faith potentially recovering:
- The full amount owed under your policyPenalty interestAttorney’s fees
- Penalty interest
- Attorney’s fees
- Additional damages for emotional distress or inconvenience
At The Johnson Law Firm, we hold insurance companies accountable when they break their promises. Whether your claim involves hail damage, fire loss or water intrusion, we can help you demand the payment you deserve.
5. Common Mistakes That Can Weaken Your Claim
Avoid these oversights that often hurt Texas property owners:
- Don’t delay your claim. Waiting too long can give the insurer ground to deny coverage.
- Consider hiring an independent adjuster to verify damages. Relying solely on the insurance adjuster’s estimate can lead to a lowball offer.
- Don’t accept a low offer too quickly. Once you sign a settlement agreement, you waive your right to dispute it.
- Ensure you read your policy carefully. Know your coverage limits, exclusions and deadlines.
Knowledge is the best protection. Understanding how the process works gives you leverage when negotiating with your insurer. When property is damaged, the last thing you need is an insurance company adding stress to an already difficult situation. You deserve fair treatment and prompt payment.
At The Johnson Law Firm, we’ve built our reputation fighting for Texas homeowners and business owners when insurance companies don’t play fair. Our experienced legal team will ensure that you’re paid every dollar you deserve.
If you’re in a situation where your insurance company is delaying or denying your property claim, don’t face it alone. Click for Mick today, your case is our priority.
