How home insurance claims work in Texas

Step 1: Report fast and protect the property

TDI's advice is to tell your company as soon as possible; many policies have their own filing deadlines, and some give you one year unless you show good cause for a delay. TWIA's deadline is one year from the date of damage by law.

Make temporary repairs only (tarp the roof, board windows, remove water) and keep receipts. TDI warns an insurer may deny a claim if you make permanent repairs before it sees the damage. Photograph everything first and keep damaged items.

Step 2: The insurer's deadlines

Under Insurance Code Sections 542.055 to 542.057, most insurers must:

• Within 15 days of notice: acknowledge the claim, begin investigating and request what they need. Eligible surplus lines insurers get 30 business days.
• Within 15 business days of receiving everything requested: accept or reject in writing, with reasons for any rejection. If they need more time, they must tell you why within that period and decide within 45 days of that notice. Suspected arson: 30 days.
• Within 5 business days of agreeing to pay: send payment. Surplus lines insurers: 20 business days.
• After a weather-related catastrophe or major natural disaster defined by the commissioner, all of these are extended by 15 days.

What happens if the insurer misses them

An insurer that's liable for a claim and doesn't comply owes interest on the claim amount plus reasonable attorney's fees (Section 542.060). For most claims it's 18% a year. For weather-related property claims covered by Chapter 542A, the rate is set at judgment as 5 percentage points above the rate under Finance Code Section 304.003. TDI's guide puts it plainly: if a company misses the payment deadline, you can sue for the claim plus interest and attorney's fees.

Step 3: Working the estimate

The adjuster's estimate drives the payment. TDI suggests being there for the inspection with your contractor if possible; if the damage turns out worse than first estimated, you or your contractor can ask the adjuster to raise the estimate. Getting more than one contractor bid gives you something concrete to compare against.

If you have a mortgage, the check usually names you and your lender. TDI says that once the lender has the information it asks for, such as the work list, estimates and contractor details, it must release all or some of the money within 10 days. Complaints about late releases go to the Texas Attorney General.

Step 4: Appraisal for disputes about the amount

Appraisal settles how much the loss is worth, not whether it's covered. Each side hires an appraiser, the two pick an umpire, and if the appraisers' estimates differ, TDI says the umpire makes the final, binding decision. You pay your appraiser and half the umpire's cost.

New in 2025: Senate Bill 458 added Insurance Code Chapter 1813, which requires residential property and personal auto policies to contain an appraisal provision. The law applies to policies issued or renewed on or after January 1, 2026, including FAIR Plan and some surplus lines policies, but not TWIA, which has its own appraisal rules. The amount set by appraisal is binding on both sides except for fraud, accident, material mistake or an award made without authority.

Step 5: Complaints and outside help

• TDI complaint: must be in writing; use TDI's online complaint portal. TDI's Help Line is 800-252-3439.
• Public adjuster: works for you, charges a fee, and must hold a TDI license. Make sure you understand the fee before you sign.
• OPIC: the Office of Public Insurance Counsel represents consumers as a class and answers policy questions, but can't take your complaint or represent you individually.
• Justice Court: for claims under $20,000, TDI notes you can use Justice Court without an attorney.

Step 6: If you're heading to court on a weather claim

For claims caused by forces of nature (hail, wind, hurricane, flood, tornado, lightning, wildfire, earthquake, snowstorm or rainstorm), Chapter 542A requires written notice at least 61 days before you sue. The notice must state the specific amount owed and your attorney's fees to date. The insurer can ask to inspect within 30 days of the notice. Notice isn't required if the limitations period is about to run out. TWIA claims follow a separate process instead.