Plano Mold Damage: Texas Property Insurance Rights Guide

11 min read

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

Whether you live near Arbor Hills Nature Preserve or in a historic Old Towne neighborhood, owning a home in Plano, Texas carries a unique set of weather-related risks. The humid North Texas climate, frequent spring hailstorms, and periodic flash floods create the perfect breeding ground for mold. Unfortunately, insurance carriers often deny or underpay mold damage claims, leaving homeowners to shoulder expensive remediation bills. This comprehensive guide—written from a policyholder-friendly perspective—explains how Texas property insurance law protects Plano homeowners, what deadlines apply, and how you can challenge delayed, underpaid, or denied mold and other property damage claims.

The information below cites the Texas Insurance Code ("TIC"), Texas Department of Insurance ("TDI") regulations, and landmark court decisions that shape claim handling statewide. By the end, you will know exactly:

• Which Texas statutes require prompt claim payments and forbid bad faith denials.

• How the appraisal process works and when to invoke it.

• Step-by-step actions to strengthen your mold damage claim.

• When to involve a Plano insurance attorney and how Louis Law Group can help.

Legal disclaimer: This guide is for informational purposes only and does not create an attorney–client relationship. Consult qualified counsel about your specific situation.

Understanding Texas Property Insurance Law

Key Provisions Protecting Policyholders

Texas has some of the nation’s most consumer-oriented insurance statutes. Three chapters of the Texas Insurance Code are especially relevant to mold damage and other residential property claims:

Chapter 542 – Prompt Payment of Claims Act (PPCA)

  - The insurer must *acknowledge* your claim within **15 calendar days** of receipt (Tex. Ins. Code §542.055(a)(1)).

  - Within the same 15 days, the carrier must start an investigation and request all necessary documents.

  - After receiving required documentation, the carrier has **15 business days** to accept or deny the claim (§542.056(a)).

  - Failure to comply triggers statutory interest (currently 18% per year) and attorney’s fees.

Chapter 541 – Unfair Methods of Competition and Unfair or Deceptive Acts

Also called the Texas "bad faith" statute, Chapter 541 prohibits carriers from misrepresenting policy terms, refusing prompt settlement when liability is clear, or compelling policyholders to sue by offering substantially less than the claim is worth.

Chapter 542A – Certain Weather-Related Property Claims

Enacted in 2017, §542A applies to wind, hail, flood, freeze, and similar weather events that often lead to mold growth. It contains a 60-day pre-suit notice requirement and clarifies liability for adjusters. Importantly, it *does not* eliminate your right to sue for bad faith or breach of contract.

Statutes of Limitation in Texas

• Breach of contract: Four (4) years from the date the carrier denied or underpaid the claim (Tex. Civ. Prac. & Rem. Code §16.004).

• Bad faith/Chapter 541 claims: Two (2) years from the date you discovered, or reasonably should have discovered, the violation (§541.162).

• Prompt Payment/Chapter 542 claims: Two (2) years under the residual limitations period for statutory penalties.

Because statutes and policy conditions can shorten or lengthen these windows, contact a qualified attorney as soon as you suspect your insurer is not treating you fairly.

Common Property Insurance Disputes in Plano and Across Texas

Plano’s continental climate combines hot, humid summers with sudden cold snaps. Add aging plumbing in many 1980s-era subdivisions and you have a recipe for mold. Below are the most frequent claim types we see:

Mold Damage

Mold can begin growing within 24–48 hours after a water event. Many Texas policies cap mold remediation coverage at $5,000 unless you purchase an endorsement. Disputes arise over causation (e.g., whether the mold came from a covered pipe burst versus long-term seepage) and the true cost of removal.

Wind and Hail Damage

Collin County ranks among the top in Texas for hail claims. Carriers frequently depreciate roofs unfairly or overlook hidden damage to decking and flashing.

Water and Freeze Damage

The February 2021 winter storm led to a surge in frozen-pipe claims. Many denials hinged on alleged "neglect" or failure to maintain heat.

Fire and Smoke Damage

Beyond visible charring, smoke can penetrate HVAC systems, causing long-term health issues and necessitating professional cleaning—often contested by insurers.

Scope of Repairs

Disputes often revolve around whether matching flooring or continuous roofing is required. Texas courts tend to favor policy language, but bad faith arises when carriers ignore building codes or manufacturer discontinuations.

Texas Legal Protections & Regulations

Prompt Payment Deadlines Revisited

Below is a concise timeline under Chapter 542 for most first-party residential claims:

ActionDeadline Insurer acknowledges claim15 calendar days Insurer requests more info15 calendar days Insurer accepts/denies claim15 business days after receipt of docs Payment issued after acceptance5 business days

Appraisal Clause Basics

Most Texas HO-3 and HO-B policies include an appraisal clause allowing either party to demand appraisal when they disagree on the amount of loss, not coverage. Key points:

• Johnson v. State Farm Lloyds, 290 S.W.3d 886 (Tex. 2009) held that appraisal awards are binding unless fraud exists.

• You must usually demand appraisal within a “reasonable time.” Courts have upheld appraisal invoked years after loss if no prejudice shown (Franco v. Allstate, 505 S.W.3d 593 (Tex. 2016)).

• Appraisal does not waive Chapter 542 interest or bad faith claims if the carrier unreasonably delayed.

Bad Faith and Extra-Contractual Damages

Under Arnold v. Nat'l County Mutual, 725 S.W.2d 165 (Tex. 1987), insurers owe a common-law duty of good faith and fair dealing. Violations can warrant:

• Treble damages under TIC §541.152 if conduct was “knowingly” committed.

• 18% interest plus attorneys’ fees under Chapter 542.

• Mental anguish damages when the denial caused independent injury.

Recent Legislative Updates

House Bill 2534 (2021) strengthens consumer protections by ensuring carriers can’t escape attorney fee liability via procedural maneuvers in weather-related claims. Always check for the latest updates on the Texas Department of Insurance website.

Steps to Take After a Property Insurance Dispute

The moment you realize your claim is delayed, underpaid, or denied, follow the roadmap below to preserve evidence and maximize recovery:

Document Everything Immediately

  - Take time-stamped photos/videos of the mold, water source, and all affected areas.

  - Keep damaged materials (e.g., drywall cut-outs) for inspection.

  - Maintain a claim diary of every call, email, and adjuster visit.

• Mitigate Further Damage Texas policies require "reasonable steps" to prevent further loss. Hire an IICRC-certified remediation company for emergency dry-out—save receipts.

• Secure Independent Estimates Get at least two detailed bids reflecting Plano labor rates. Carriers often rely on out-of-date pricing databases.

• Request a Certified Copy of Your Policy Under TIC §542.051, the insurer must provide policy documents upon request. Review endorsements for mold limits and appraisal language.

• Invoke Appraisal (If Appropriate) If the dispute is solely over price, send a written, dated demand naming your appraiser. Choose someone experienced in mold remediation costs.

File a Complaint with TDI If the carrier misses PPCA deadlines or acts in bad faith, file an online complaint with the TDI Consumer Protection Division. While TDI can’t award money, it pressures carriers to comply.

• Send a 60-Day Notice Letter Before suing under Chapter 541 or 542A, you must send a detailed pre-suit notice describing the violation, damages, and attorneys’ fees demanded.

• Consult an Experienced Plano Insurance Attorney Early legal intervention preserves evidence, meets statutory deadlines, and may lead to faster settlements without litigation.

When to Seek Legal Help in Texas

You should consider retaining counsel when:

• The insurer refuses to pay for mold remediation, claiming "maintenance" or "humidity" exclusions.

• Your home is uninhabitable, and the carrier denies Additional Living Expenses (ALE).

• Repeated delays violate PPCA timelines.

• An appraisal award still doesn’t cover actual repair costs.

Louis Law Group’s attorneys are licensed in Texas and focus exclusively on policyholder rights. We conduct roof, plumbing, and microbial inspections at no up-front cost and front expert fees in qualified cases. Our contingency-fee model means you pay nothing unless we recover benefits or damages on your behalf.

Local Resources & Next Steps

Texas Department of Insurance (TDI): Consumer helpline 800-252-3439; online resources at tdi.texas.gov.

• Collin County District Courts: 2100 Bloomdale Rd., McKinney, TX 75071 – handles lawsuits over $250,000.

• Collin County Court at Law: Same address – for cases up to $250,000.

• Plano Municipal Center: Obtain building permits and code information affecting repair scope.

State Bar of Texas Lawyer Referral Service: 800-252-9690 or online portal. Texas Judicial Branch Case Lookup: txcourts.gov.

Ready to Fight Back? If your property insurance claim—mold, hail, water, fire, or otherwise—has been delayed, underpaid, or denied, don’t wait until deadlines expire. Call Louis Law Group at 833-657-4812 for a free case evaluation and policy review. Our Plano-focused team knows the local adjusters, contractors, and court systems, and we are prepared to enforce every right you have under Texas law.