Plano Guide: Texas Property Insurance Law & Rights

Estimated read time: 11 min read

Introduction: Why Plano Homeowners Need to Master Texas Property Insurance Law

If you own a home in Plano, Texas, you probably already know how quickly our weather can change. One spring thunderstorm can hammer Collin County with golf-ball hail, while summer humidity can invite hidden mold growth. Come winter, the kind of deep freeze that burst pipes across the Dallas–Fort Worth area in February 2021 may strike again. Those risks make property insurance not just advisable, but essential. Yet many Plano homeowners discover—often after filing a claim—that insurers do not always play fair. Delays, lowball estimates, and outright denials are common. Understanding Texas property insurance law Plano residents rely on is therefore critical to protecting your largest investment.

This comprehensive guide favors the policyholder’s perspective while staying firmly grounded in Texas statutes, regulations, and case law. We cover:

• Key provisions of the Texas Insurance Code, including Prompt Payment rules and bad-faith penalties.

• Common disputes (hail, water, mold damage, hurricane losses, and scope of repair fights).

• Statutory deadlines, appraisal rights, and the statute of limitations.

• Actionable, step-by-step advice—from first notice of loss to filing suit.

• Local resources every Plano homeowner should bookmark.

Whether you are battling a stubborn adjuster or simply preparing for the next storm, keep this guide handy. And remember: if your claim has been 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: Your Statutory Shield

The Texas Legislature has enacted extensive protections for policyholders. The most frequently invoked chapters are:

• Chapter 541 – Unfair Methods of Competition & Unfair or Deceptive Acts or Practices. This is Texas’s statutory “bad-faith” law. It prohibits misrepresentations of policy terms, failure to settle promptly, or any unfair claim-handling tactic. Violations may entitle the homeowner to actual damages, mental-anguish damages, and, in blatant cases, up to treble damages.

Chapter 542 – Prompt Payment of Claims Act (PPCA). Insurers must acknowledge and begin investigating a claim within 15 days of notice (Tex. Ins. Code § 542.055). They must accept or reject the claim within 15 business days after receiving all requested items (extended to 30 days in certain catastrophes). Once liability is accepted, the carrier has 5 business days—often called the “five-day rule”—to issue payment. Failure triggers statutory interest (currently 18% per annum) and attorney’s fees.

• Chapter 542A – Hail and Windstorm Claims. Passed in 2017, this chapter adds a 60-day pre-suit notice requirement and modifies attorney-fee recovery, but also expressly preserves homeowners’ right to sue adjusters in certain circumstances.

2. Contractual Rights in Your Policy

Texas allows insurers to incorporate appraisal, alternative dispute resolution, and even shortened contractual limitation periods. Always check:

• Appraisal Clause. This clause lets either party demand an appraisal—a quasi-arbitration limited to amount of loss. In Texas, courts enforce appraisal awards absent fraud or manifest error (State Farm Lloyds v. Johnson, 290 S.W.3d 886 (Tex. 2009)).

• Suit-limitation Period. While Texas’s general statute of limitations for written contracts is four years, Insurance Code § 16.070 allows policies to shorten this to no less than two years and one day. Many homeowner policies do, so mark your calendar.

3. Common-Law “Bad Faith”

Even beyond the Insurance Code, Texas recognizes an implied covenant of good faith and fair dealing. Insurers may be liable for denying or delaying a claim when liability is “reasonably clear” (Arnold v. Nat’l Cnty. Mut., 725 S.W.2d 165 (Tex. 1987)).

Common Property Insurance Disputes in Texas

1. Wind & Hail Damage

Collin County is in “hail alley,” and Plano averages five hail events a year. Disputes often arise over:

• Matching. Texas courts have required full‐roof replacement when matching shingles is impossible, depending on policy language.

• Scope of Repair. Insurers may approve only spot repairs; homeowners argue entire slopes were damaged.

2. Water & Mold Damage (Including Our Focus Topic)

Mold thrives in North Texas’s humid summers and after plumbing failures. Policies frequently exclude mold unless it results from a “covered peril” like sudden pipe bursts. Disputes center on:

• Causation. Was mold from long-term seepage (likely excluded) or a sudden, covered event?

• Remediation Costs. Texas’s mold regulations require licensed remediators and post-remediation assessment, driving costs higher than insurers estimate.

3. Hurricane & Named Storm Claims

While Plano sits roughly 300 miles from the coast, remnants of Gulf hurricanes can dump torrential rain and spawn tornadoes, triggering flood, wind, and mold claims. Homeowners must decipher overlapping windstorm, flood (NFIP), and standard homeowner policies.

4. Fire & Smoke Losses

From lightning-caused attic fires to kitchen grease flare-ups, insurers often dispute structural versus cosmetic smoke damage and the cost to clean HVAC systems.

5. Additional Living Expense (ALE) Claims

After a severe loss, insurers must reimburse reasonable temporary housing costs. Disagreements arise over length of displacement and comparable housing rates in Plano’s tight rental market.

Texas Legal Protections & Recent Case Law

1. Statutory Deadlines You Must Track

• Notice of Loss. Most policies require “prompt” notice—courts look at reasonableness. Don’t wait.

• 15-Day Acknowledgment. Insurer must respond within 15 calendar days.

• 15/30-Day Decision. Insurer must accept or deny within 15 business days after receiving all requested info (30 in catastrophes).

• 5-Day Payment Rule. Payment must follow within 5 business days of acceptance.

• 2 Years + 1 Day Contractual Suit Limits. Many policies shorten the four-year default.

2. Appraisal: A Double-Edged Sword

Texas courts view appraisal favorably; once an award is entered, the dispute over amount is largely over. However, appraisal does not extinguish bad-faith claims. If the insurer unreasonably delayed payment before appraisal, damages may still be available (Barbara Techs. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019)).

3. Bad-Faith Damages After Appraisal

In Ortiz v. State Farm Lloyds, 589 S.W.3d 127 (Tex. 2019), the Texas Supreme Court clarified that an appraisal award paid promptly can moot some bad-faith claims, but not all. Careful pleading remains crucial.

4. Mold Disputes and the Landmark Ballard Case Ballard v. Fire Insurance Exchange (Travis Cty. Dist. Ct. 2001) resulted in a $32 million verdict (later reduced) for denial of mold coverage. Though nearly two decades old, the case pushed Texas insurers to clarify mold exclusions—and taught juries to punish bad-faith denials.

Step-by-Step Guide After a Property Insurance Dispute

Step 1: Document Everything Immediately

• Photograph and video the damage from multiple angles.

• Keep receipts for emergency repairs, temporary lodging, and property replacement.

• Create a claim diary noting every call, email, and in-person visit.

Step 2: Mitigate Further Damage

Texas policies impose a duty to prevent additional loss. Board up windows, tarp roofs, run dehumidifiers. Failure may give insurers ammunition to reduce payment.

Step 3: Read—and Re-Read—Your Policy

Pay special attention to exclusions, endorsements (e.g., mold limitations), and the appraisal clause. If you cannot locate a copy, request one from your agent in writing.

Step 4: Obtain Independent Estimates

Many Plano homeowners accept the insurer’s estimate without comparison. Hire a licensed public adjuster, contractor, or engineer experienced in Texas property damage claims. Independent scopes often uncover thousands in additional loss.

Step 5: Respond Promptly to Insurer Requests—but in Writing

Provide documents within reasonable time, but insist that all carrier requests and responses be confirmed by email or letter. This paper trail is gold in litigation.

Step 6: Escalate Through Appraisal (If Advantageous)

If the dispute is strictly over dollars and you are confident in your numbers, invoke appraisal. Send a signed, dated letter referencing the policy’s appraisal clause and naming your chosen appraiser. Remember: each side pays its own appraiser and splits the umpire’s fee.

Step 7: File a Complaint with the Texas Department of Insurance (TDI)

If the carrier ignores deadlines or engages in questionable tactics, file a consumer complaint online with the Texas Department of Insurance. TDI cannot force payment but often prods insurers to act.

Step 8: Preserve Your Legal Rights—Diary the Suit Deadline

Determine the policy’s limitations period (often 2 years + 1 day). Courts strictly enforce it. If appraisal or protracted negotiations drag on, request a written tolling agreement or file suit to preserve claims.

Step 9: Consult a Plano Insurance Attorney Sooner Rather Than Later

Insurers have entire legal departments. Getting counsel early levels the field, especially in complex mold, foundation, or partial-denial cases.

When to Seek Legal Help in Texas

Not every dispute demands litigation, but several red flags signal it is time to call Louis Law Group:

• The carrier cites “wear and tear,” “maintenance,” or “long-term seepage” without proper investigation.

• You receive a reservation-of-rights letter suggesting coverage may be denied.

• Adjusters rotate frequently, and you must “start from scratch” each time.

• Payment is issued but clearly insufficient to restore the property to its pre-loss condition.

How Louis Law Group Helps Plano Homeowners

• Free Policy Review. We interpret dense exclusions and endorsements.

• Claim Valuation. Our network of engineers, industrial hygienists (for mold), and estimators document the true cost to repair.

• Pre-Suit Notice & Negotiation. Under Tex. Ins. Code § 542A.003, we draft the 60-day notice, often prompting settlement without filing.

• Litigation. When necessary, we litigate in Collin County or federal court, seeking unpaid benefits plus interest, attorney’s fees, and bad-faith damages.

Louis Law Group’s attorneys are licensed in Texas or work with trusted local counsel to comply with State Bar of Texas requirements.

Local Resources & Next Steps

1. Government & Regulatory Contacts

Texas Department of Insurance (TDI) – Consumer help line: 800-252-3439 Texas Judicial Branch – Access to dockets, forms, and e-filing

• Collin County District Courts – 2100 Bloomdale Rd., McKinney, TX 75071

• City of Plano Building Inspections – Obtain permits and code information that may affect repair estimates

2. Legal Aid & Professional Associations

• Legal Aid of Northwest Texas (Plano office) – 972-542-9405

• Collin County Bar Association Lawyer Referral – 972-424-6113

3. Weather & Building Code References

• National Weather Service Dallas/Fort Worth – Historical hail and wind data

• International Residential Code (IRC) as adopted by Plano – Defines roof decking, ventilation, and mold-preventive standards

Your Next Step

If your insurer is dragging its feet or offering pennies on the dollar, you have powerful rights under Texas law—but every deadline matters. Call Louis Law Group at 833-657-4812 for a free case evaluation and policy review. We fight to get Plano homeowners every dollar they deserve.

Legal Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship. Consult a qualified Texas-licensed attorney regarding your specific situation.