Fort Worth Guide to Texas Property Insurance Law & Rights

Estimated read time: 13 min read

Introduction: Why Fort Worth Homeowners Must Know Their Rights

Fort Worth, Texas routinely experiences powerful thunderstorms, flash flooding along the Trinity River, seasonal hail, and the occasional tornado. These events often lead to roof leaks, water intrusion, and ultimately mold growth—one of the most hotly contested forms of property damage under Texas homeowner policies. Unfortunately, many policyholders discover that filing a claim is only half the battle. Delays, underpayments, and outright denials are common across Tarrant County and throughout the state, leaving families to shoulder costly repairs alone.

This comprehensive guide explains how Texas property insurance law protects Fort Worth homeowners, what deadlines apply, and how to respond when an insurer refuses to play fair. Whether you are grappling with mold remediation estimates, wind and hail roof damage, or a sudden burst pipe, the steps below will help you preserve your rights and maximize your recovery.

Key Takeaways

• The Texas Insurance Code imposes strict prompt-payment deadlines on insurers—often 15 days to acknowledge a claim and 60 days to pay a covered loss.

• Policyholders may recover attorney’s fees, 18% statutory interest, and additional damages when insurers act in bad faith.

• Fort Worth policies typically contain an appraisal clause that can be invoked to resolve disputes over the amount of loss.

• Mold coverage is frequently limited by policy language, but Texas law still requires carriers to handle the claim in good faith and comply with all deadlines.

• If your claim is delayed, underpaid, or denied, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review.

Understanding Texas Property Insurance Law

1. The Texas Insurance Code

The primary body of statutes governing homeowner insurance policies is found in the Texas Insurance Code Chapter 542 – Subchapter B, commonly called the Prompt Payment of Claims Act. Key provisions include:

• §542.055 – Insurer must acknowledge, begin investigating, and request all necessary information within 15 calendar days of receiving a written notice of claim.

• §542.056 – Insurer must accept or reject the claim within 15 business days after receiving all requested information (may extend to 30 days for suspected arson).

• §542.058 – Failure to pay within 60 days subjects the carrier to 18% annual interest plus reasonable attorney’s fees.

For mold claims, insurers sometimes dispute the date of loss or argue the damage was gradual. Even if coverage is contested, the prompt-payment clock still applies once the carrier has all necessary information.

2. Bad-Faith Protections

Chapter 541 of the Insurance Code prohibits unfair claim-handling practices, including misrepresenting policy terms, failing to conduct a reasonable investigation, or refusing to pay a claim without a reasonable basis. Texas courts recognize two forms of bad faith:

• Common-Law Bad Faith – Established in Arnold v. Nat’l Cnty. Mut., 725 S.W.2d 165 (Tex. 1987). Insurers owe a duty of good faith and fair dealing.

• Statutory Bad Faith – Created by Chapter 541; allows treble damages when the insurer knowingly commits unfair practices.

In mold cases, red flags of bad faith include ignoring an indoor air-quality report, cherry-picking contractor estimates, or delaying payment while mold spreads.

3. Statute of Limitations

Texas generally allows two years to file a lawsuit for breach of contract and bad-faith claims related to property insurance. Some policies shorten this to one year, but courts scrutinize such provisions. Consult a Fort Worth insurance attorney immediately if your claim is approaching the one- or two-year mark.

Common Property Insurance Disputes in Texas

Below are the most frequent issues Louis Law Group encounters in Tarrant, Parker, and Wise Counties.

1. Wind and Hail Roof Damage

Fort Worth sits in Hail Alley. Severe storms in April 2021 caused over $1 billion in insured losses, according to the Insurance Council of Texas. Carriers often attribute shingle bruising to age or poor maintenance rather than recent hail impacts, resulting in partial denials.

2. Water Damage & Mold Growth

Texas policies typically include a Sudden and Accidental Discharge provision but exclude long-term leakage. Carriers may therefore label hidden pipe leaks as “ongoing” to avoid paying. Mold limits range from $5,000 to $50,000 unless additional coverage is purchased.

3. Hurricane & Tornado Claims

While hurricanes rarely reach North Texas with full force, remnants can still spawn tornadic activity. Disputes arise over wind vs. flood causation. The Texas Supreme Court’s decision in State Farm Lloyds v. Richards, 966 F.3d 389 (5th Cir. 2020) emphasized strict policy interpretation, reinforcing the need for detailed documentation.

4. Fire & Smoke Losses

Insurers may depreciate labor, dispute code-upgrade costs, or underpay ALE (Additional Living Expenses). The burden rests on the homeowner to prove the full scope of damage.

5. Scope of Repair & Pricing Disputes

Even when coverage is conceded, carriers may offer Xactimate estimates that omit overhead and profit, baseboards, or continuous flooring. Utilizing independent contractors and, if necessary, invoking appraisal can secure the correct valuation.

Texas Legal Protections & Regulations

A. Prompt-Payment Deadlines Recap

• 15 days to acknowledge & request information

• 15 business days to accept/reject after receiving information

• 5 business days to pay after notifying approval

• Penalty: 18% annual interest + attorney’s fees (Tex. Ins. Code §542.060)

B. The Appraisal Process

Most Texas policies permit either side to demand appraisal when the amount of loss is disputed (coverage issues remain outside appraisal). Steps:

• Written demand naming a competent, impartial appraiser.

• Insurer names its appraiser within 20 days.

• Appraisers select an umpire. If they cannot agree, either may petition a court in Tarrant County under Tex. Civ. Prac. & Rem. Code §171.041.

• Award signed by any two of the three participants is binding absent fraud.

Deadline: Some policies require appraisal demands within 60 days of disagreement. Act quickly after receiving an underpayment.

C. Recent Court Rulings Affecting Homeowners

• Barbara Techs. Corp. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019) – Even payment of an appraisal award does not bar prompt-payment penalty interest.

• Ortiz v. State Farm Lloyds, 589 S.W.3d 127 (Tex. 2019) – An insured may still pursue bad-faith claims post-appraisal if the insurer relied on something more than a bona fide dispute.

• Twin City Fire Ins. v. Jones, 247 S.W.3d 853 (Tex. App.—Dallas 2008) – Demonstrates availability of mental-anguish damages for knowing violations of Chapter 541.

D. Department of Insurance Oversight

The Texas Department of Insurance (TDI) regulates carriers and accepts consumer complaints online or by phone at 1-800-252-3439. TDI cannot force payment but can impose fines and facilitate mediation.

Steps to Take After a Property Insurance Dispute

1. Document Everything Immediately

• Take timestamped photos and videos, including moisture readings and mold colonies.

• Retain damaged materials (e.g., baseboards or drywall) in sealed bags for inspection.

• Save every email, text, and letter from the adjuster.

2. Mitigate Further Damage

Your policy imposes a duty to prevent additional harm. Hire an IICRC-certified mold remediation firm for emergency dry-out. Keep receipts—reasonable mitigation costs are typically reimbursable.

3. Obtain Independent Estimates

Texas law allows you to choose your own contractor. Insist on a detailed room-by-room Xactimate or BuilderTrend estimate, including overhead & profit and code upgrades required by Fort Worth’s building department.

4. Request a Certified Copy of Your Policy

Under Tex. Admin. Code §5.9970, carriers must provide the full policy within 15 days of a written request. Review exclusions, endorsements, and mold sub-limits.

5. Track the Clock

Set calendar reminders for the 15-, 30-, and 60-day prompt-payment deadlines. If the insurer stalls, send a polite but firm demand noting potential penalties under §542.060.

6. File a Complaint with TDI

Use TDI’s online portal and attach supporting documents. The complaint triggers a response deadline for the carrier and puts additional regulatory pressure on the adjuster.

7. Consider Invoking Appraisal

If the dispute is purely about dollars, written appraisal demand often accelerates resolution. However, if the insurer is denying mold coverage entirely, legal action may be more appropriate.

When to Seek Legal Help in Texas

You should consult an attorney licensed by the State Bar of Texas if:

• The insurer has exceeded prompt-payment deadlines.

• You suspect claim misrepresentation or bad-faith tactics.

• The carrier denies coverage for mold based on late notice or pre-existing condition.

• You need to file suit before the two-year statute of limitations expires.

• The appraisal clause is triggered but the insurer refuses to proceed.

Louis Law Group focuses on representing Texas policyholders—not insurance companies. Our legal team reviews your policy, calculates penalty interest, and negotiates directly with carriers. If necessary, we file suit in Tarrant County District Court or Federal Court for the Northern District of Texas.

Fee Structure: We operate on contingency—no recovery, no fee. You keep control of repair decisions, and we advance litigation costs.

Local Resources & Next Steps

Government & Court Contacts

• Tarrant County District Clerk – 100 N. Calhoun St., Fort Worth, TX 76196 – (817) 884-1574

• Fort Worth Municipal Court – 1000 Throckmorton St., Fort Worth, TX 76102

• TDI Consumer Help Line – 1-800-252-3439

• Legal Aid of NorthWest Texas – (888) 529-5277

• Tarrant County Bar Association Lawyer Referral – (817) 336-4101

Checklist for Policyholders

• Report the loss in writing immediately.

• Document and mitigate.

• Request the full policy.

• Track statutory deadlines.

• Seek independent estimates.

• File TDI complaint if necessary.

• Consult Louis Law Group before appraisal or lawsuit deadlines.

Get a Free Case Evaluation Today

If your property insurance claim has been delayed, underpaid, or denied, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review. Our attorneys are ready to protect Fort Worth homeowners and ensure you receive every dollar owed under Texas law.

Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Consult a licensed Texas attorney regarding your specific situation.