Property Insurance Claim Denial Guide – Lewisville, Texas

Introduction: Why Lewisville Homeowners Need a Local Guide

North Texas residents are no strangers to severe weather. Lewisville’s proximity to the I-35E corridor places homes squarely in the path of spring hail, straight-line winds, and the occasional tornado. According to Texas Department of Insurance (TDI) catastrophe data, Denton County consistently ranks among the top counties for hail-related claims. When storms strike, Lewisville homeowners expect their property insurers to honor policies they dutifully pay for. Unfortunately, claim denials or lowball offers are common. This guide explains how to respond to a property insurance claim denial in Lewisville, Texas, what rights Texas law affords you, and when it makes sense to involve a Texas attorney.

Understanding Your Rights in Texas

The Insurance Contract and the Duty of Good Faith

Your homeowners policy is a contract. Under Texas common law, insurers owe a duty of good faith and fair dealing to policyholders. Texas courts—including the Texas Supreme Court in Arnold v. National County Mutual Fire Ins. Co., 725 S.W.2d 165 (Tex. 1987)—have held that an insurer may be liable for damages if it unreasonably denies or delays payment.

Key Statutes Every Lewisville Homeowner Should Know

• Texas Insurance Code Chapter 542 (Prompt Payment of Claims Act) – sets strict timelines for acknowledging, investigating, and paying claims. Missing the deadlines can trigger 18% annual interest plus attorney fees (Tex. Ins. Code § 542.060).

• Texas Insurance Code Chapter 541 – prohibits unfair settlement practices such as misrepresenting a policy provision or failing to promptly provide a reasonable explanation for denial.

• Texas Insurance Code Chapter 542A – applies to weather-related property claims and requires a detailed presuit notice before filing a lawsuit, giving insurers a chance to resolve disputes.

These laws slightly tip the scales in favor of policyholders, but only if you invoke them correctly—often with legal guidance.

Common Reasons Property Insurance Companies Deny Claims in Texas

• Wear and Tear Exclusions – Insurers may argue roof damage stems from age rather than the April hailstorm. Review your policy’s “perils insured against” and ask for engineering reports.

• Late Notice – Most Texas policies require “prompt” notice. Delays can justify denial, but courts will examine whether the delay prejudiced the insurer.

• Pre-Existing Damage – Carriers sometimes cite prior losses not repaired. Photographs, inspection records, and a public adjuster’s report help rebut these allegations.

• Policy Lapses or Underpayment of Premiums – Confirm your payments cleared and obtain the cancellation notice file if the carrier claims lapse.

• Misrepresentation or Fraud Accusations – Texas law allows denial if the insured intentionally conceals material facts. Honest mistakes rarely meet that threshold.

If you receive a denial letter, demand the specific policy language supporting the decision. Texas Insurance Code § 542.056 requires insurers to give a “reasonable explanation.”

Texas Legal Protections & Regulations

Prompt Payment Deadlines (Chapter 542)

• 15 days – Acknowledge your claim and request necessary documents.

• 15 business days after receiving all documents – Accept or deny.

• 5 business days after acceptance – Pay the undisputed amount.

Failure triggers statutory interest and attorney fees. In 2023, TDI’s published interest rate for Chapter 542 violations was 18%—substantially higher than most investment returns.

Unfair Settlement Practices (Chapter 541)

Section 541.060 lists examples: refusing a settlement offer without conducting a reasonable investigation, failing to affirm or deny within a reasonable time, or attempting to underpay claims. Policyholders may recover actual damages, court costs, and up to three times damages for knowing violations.

Statute of Limitations

Texas generally applies a two-year statute of limitations to Chapter 541 and Chapter 542 claims (Tex. Civ. Prac. & Rem. Code § 16.003). Your policy may shorten this to one year for breach-of-contract suits, but courts scrutinize whether that clause is conspicuous and reasonable. Act quickly.

Licensing of Texas Attorneys

Only attorneys licensed by the State Bar of Texas may provide legal advice, negotiate settlements, or file lawsuits in Texas state courts. Verify licensing at the State Bar of Texas.

Steps to Take After a Denial in Texas

1. Request the Claim File and Denial Basis in Writing

Under Texas Insurance Code § 542.003(b)(2), you have the right to fair dealing and honest communication. Send a certified letter asking for:

• The adjuster’s report;

• Photographs and engineer findings;

• Exact policy language relied upon.

2. Gather Evidence

Take date-stamped photos, obtain weather reports, and secure contractor estimates. Websites like the National Weather Service’s Storm Events Database document hail and wind events in Denton County.

3. Consider a Public Adjuster or Re-Inspection

Texas licenses public insurance adjusters (Tex. Ins. Code Chapter 4102). They work for you, not the carrier, and can provide an independent damage assessment.

4. File a Complaint with the Texas Department of Insurance

The TDI Consumer Protection division investigates unfair denials. File online or mail Form CP-F. Include your policy, claim number, and correspondence. TDI cannot order payment but pressures carriers and documents patterns of misconduct.

Texas Department of Insurance Complaint Portal

5. Preserve Deadlines and Provide Chapter 542A Notice

For weather-related claims, send a presuit notice at least 60 days before filing suit, detailing damages, attorney fees, and policy provisions violated. Certified mail or e-mail with delivery receipt satisfies § 542A.003.

6. Negotiate or Mediate

Many disputes settle in mediation. Insurers sometimes prefer the Texas Department of Insurance’s RightTrack voluntary mediation program for property claims under $25,000.

When to Seek Legal Help in Texas

While some Lewisville homeowners resolve minor denials independently, certain indicators suggest you need counsel:

• The denial involves alleged fraud or misrepresentation;

• Damage exceeds $25,000 or involves complex structural issues;

• The carrier ignores Chapter 542 deadlines;

• You face a looming statute of limitations;

• The insurer makes a “reservation of rights” that could void coverage.

Experienced texas attorneys use discovery tools—depositions, subpoenas, expert witnesses—to compel evidence an individual homeowner might not obtain. Under Chapter 542, attorney fees may be recoverable if you prevail, reducing out-of-pocket costs.

Local Resources & Next Steps for Lewisville Homeowners

City and County Contacts

• City of Lewisville Building Inspections – 151 W. Church St.; obtain permit records to prove repairs were up to code.

• Denton County District Courts – Claims over $250,000 filed in the 158th, 362nd, 393rd, or 431st District Courts, all seated in Denton, TX.

Weather and Building Code References

Lewisville follows the 2021 International Residential Code with local amendments requiring Class IV impact-resistant shingles on new builds—evidence that hail is a recognized risk factor.

Educational Materials

TDI Homeowners Insurance Consumer Guide TDI Hail Claim Resources USGS Texas Hail and Wind Study

Review these before meeting an attorney or adjuster so you understand terminology and local risks.

Conclusion

A property insurance claim denial Lewisville Texas does not have to be the final word. Texas statutes, TDI oversight, and court precedent provide powerful remedies—if you act within strict deadlines and marshal evidence effectively. Keep meticulous records, insist on written explanations, and consult a qualified professional when the dispute exceeds your comfort level.

Legal Disclaimer: This article is for informational purposes only and does not constitute legal advice. Every situation is unique. Consult a licensed Texas attorney regarding your specific facts.

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