Guide to Property Insurance Rights – McKinney, Texas

Introduction: Why McKinney Homeowners Need a Local Property Insurance Guide

McKinney, Texas is no stranger to severe weather. Situated in Collin County on the northern edge of the Dallas–Fort Worth metroplex, the city regularly experiences spring hailstorms, straight-line winds, and the occasional tornado. According to National Oceanic and Atmospheric Administration (NOAA) storm event data, Collin County recorded more than 50 hail events between 2018 and 2023. When storms hit, property owners rely on insurance carriers to honor the promises contained in their policies. Yet policyholders often face property insurance claim denials, delays, or low-ball settlement offers.

This guide—written specifically for McKinney homeowners—explains your rights under Texas insurance law, outlines common insurer tactics, and provides step-by-step instructions on what to do after a denial. While the content slightly favors policyholders, every fact is grounded in authoritative sources such as the Texas Department of Insurance (TDI), the Texas Insurance Code, and published Texas court opinions. At more than 2,500 words, this guide covers:

• Your substantive rights under Texas law

• Key deadlines and statutes of limitation

• Common reasons carriers deny Texas claims

• The Texas Department of Insurance complaint process

• Practical steps and when to contact a Texas attorney

Understanding Your Property Insurance Rights in Texas

1. The Right to Prompt Payment and Fair Handling

Texas Insurance Code Chapter 542—also called the Prompt Payment of Claims Act—requires insurers to:

• acknowledge a claim within 15 calendar days of receipt;

• begin an investigation and request all required items from the policyholder within the same 15-day window; and

• accept or reject the claim within 15 business days after receiving all requested items (the deadline is 30 days for certain surplus lines carriers).

If the insurer violates these deadlines, it may owe 18 % per-year interest on the amount eventually found to be owed, plus reasonable attorney’s fees (Tex. Ins. Code § 542.060).

2. The Right to Be Free from Unfair Settlement Practices

Chapter 541 of the Texas Insurance Code prohibits insurers from:

• misrepresenting policy terms or facts;

• failing to settle when liability is reasonably clear;

• refusing to pay without conducting a reasonable investigation; and

• delaying payment to pressure claimants into lesser settlements.

Policyholders may sue for actual damages, additional damages up to three times the amount of loss if the carrier acted knowingly, and attorney’s fees (Tex. Ins. Code § 541.152).

3. The Right to Sue Within Texas Deadlines

• Breach of Contract: Four years from the date the cause of action accrues (Tex. Civ. Prac. & Rem. Code § 16.004).

• Bad Faith / Chapter 541: Two years from the date of the unfair act or within two years after the act could reasonably have been discovered, plus an optional 180-day extension (Tex. Ins. Code § 541.162).

Some insurance policies shorten contractual limitation periods, but Texas courts will not enforce a period of less than two years (see Spence v. Banner Life Ins., 299 S.W.3d 309, Tex. App.—Dallas 2009).

Common Reasons Property Insurance Companies Deny Claims in Texas

1. Hail or Wind Damage Alleged to Be “Cosmetic Only”

North Texas hail often fractures shingles and compromises roof integrity. Carriers sometimes claim the damage is merely cosmetic. Texas courts have rejected this tactic when underlying structural harm exists (Lamar Homes, Inc. v. Mid-Continent Cas. Co., 242 S.W.3d 1, Tex. 2007).

2. Late Notice of Loss

Policies often require “prompt” or “immediate” notice. Texas law examines whether the delay prejudiced the insurer (Hamilton Properties v. Am. Ins., 643 F. App’x 437, 5th Cir. 2016). In many cases, carriers cannot show actual prejudice, and the denial is improper.

3. Pre-Existing or Wear-and-Tear Exclusions

Insurers may attribute damage to ordinary aging. However, under Texas law the carrier bears the burden to segregate covered loss from excluded loss when the two combine to cause damage (Wallis v. United Servs. Auto. Ass’n, 2 S.W.3d 300, Tex. App.—San Antonio 1999).

4. Failure to Mitigate

Policyholders must take reasonable steps, such as tarping a roof, but are not required to perform permanent repairs before inspection. Denials on this ground may violate Chapter 541 if the insurer never offered guidance or an advance for mitigation.

5. Alleged Misrepresentation or Fraud

Texas recognizes an insurer’s right to void a policy for intentional misrepresentation, but the burden of proof is “clear and convincing.” Baseless fraud accusations may constitute bad faith under Chapter 541.

Texas Legal Protections & Insurance Regulations

1. Texas Deceptive Trade Practices Act (DTPA)

Although primarily a consumer law, the DTPA applies to homeowners’ insurance when the policy is primarily for personal use. Violations of the Insurance Code also constitute DTPA violations, allowing treble damages under Tex. Bus. & Com. Code § 17.46.

2. The Texas Homeowner Bill of Rights

Published by TDI, this document explains:

• the right to receive a consumer bill of rights with your policy;

• the right to cancel within 14 days of purchase if no claim has been made;

• the right to privacy of personal financial information; and

• protections against insurer retaliation for filing complaints.

3. Licensing and Ethical Duties of Texas Adjusters

Adjusters must be licensed under Tex. Ins. Code Chapter 4101 and follow the Texas Administrative Code § 19.701 et seq. Failure to act in good faith can lead to license suspension and civil liability.

4. Public Adjusters vs. Attorneys in Texas

Public insurance adjusters may assist in claim valuation but cannot practice law. Only a Texas attorney can file suit or give legal opinions on statutes of limitation.

Steps to Take After a Property Insurance Claim Denial in Texas

Step 1: Review the Denial Letter

Under 28 TAC § 21.203, insurers must state the specific policy language used to deny the claim. Compare that language to your declarations page and policy endorsements.

Step 2: Gather Evidence

• Photographs and video of damage (date-stamped if possible)

• Weather reports showing hail size or wind speeds in McKinney on the date of loss

• Contractor or engineer reports

• Invoices for emergency mitigation

Step 3: Demand Written Reconsideration

Send a certified letter citing Chapter 542 deadlines and requesting reconsideration. Include documentation and set a 10-day window for the insurer to respond.

Step 4: File a Complaint with the Texas Department of Insurance

You can file online, by mail, or by fax. TDI will require the denial letter, your policy number, and supporting documents. The insurer must respond to TDI within 15 days. While TDI cannot order payment, its inquiries often prompt carriers to reevaluate claims.

Step 5: Invoke Appraisal, If Appropriate

Most Texas policies contain an appraisal clause. Either side may invoke appraisal to determine the amount of loss, but not coverage. You must do so in strict compliance with policy wording; missing deadlines can waive the right.

Step 6: Consult a Texas Attorney

If the dispute involves coverage, bad faith, or significant underpayment, legal counsel is often necessary. Texas attorneys typically work on contingency for property claims, advancing litigation costs.

When to Seek Legal Help in Texas

1. Repeated Delays or Violations of Chapter 542 Deadlines

Interest penalties and attorney’s fees may offset litigation costs.

2. Denials Based on “Wear and Tear” After a Known Storm Event

A qualified attorney can hire experts to segregate covered damage.

3. Fraud Accusations or Policy Rescission

These are serious allegations that can impact future insurability.

4. Threats of Non-Renewal After Filing a Claim

Texas law limits an insurer’s ability to non-renew for weather-related claims (Tex. Ins. Code § 551.107).

Attorney Licensing Note

Under Texas Gov’t Code § 81.051, only attorneys licensed by the State Bar of Texas may practice law or give legal advice. Ensure any lawyer you hire is in good standing by checking the State Bar of Texas attorney directory.

Local Resources & Next Steps for McKinney Homeowners

1. City of McKinney Building Inspections & Permitting

Before beginning repairs, contact the Building Inspections Department to ensure compliance with local codes, including recent wind-resistant roofing requirements.

2. Collin County District Courts

Property insurance lawsuits under $250,000 are generally filed in the 366th, 417th, or 470th District Courts, all located in McKinney.

3. North Central Texas Council of Governments (NCTCOG)

NCTCOG publishes regional hazard mitigation plans you can cite when negotiating roof code upgrade coverage.

4. Non-Profit & Government Assistance

FEMA Individual Assistance (for declared disasters) American Red Cross – North Texas

5. TDI Consumer Help Line

1-800-252-3439, Monday–Friday, 8 a.m.–5 p.m. Central.

Conclusion

For McKinney homeowners, understanding Texas insurance law and acting quickly after a property insurance claim denial can mean the difference between a repaired home and an unpaid disaster. Use the protections in Chapters 541 and 542 of the Texas Insurance Code, keep meticulous records, and do not hesitate to escalate the dispute through TDI or the courts.

Legal Disclaimer: This guide is for informational purposes only and is not legal advice. Consult a licensed Texas attorney regarding your specific situation.

If your property insurance claim was denied, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review.