Property Insurance Claim Guide – Flower Mound, Texas

Introduction: Why a Flower Mound-Specific Guide Matters

Flower Mound, Texas sits on the edge of Tornado Alley, straddling Denton and Tarrant counties. According to annual Severe Storm Reports compiled by the National Weather Service, the town routinely experiences large hail, straight-line winds exceeding 70 mph, and occasional tornado touchdowns.1 Local homeowners therefore carry property insurance that often includes hail and wind coverage. Yet, data published by the Texas Department of Insurance (TDI) shows that wind and hail claims represent the highest percentage of disputes statewide. For Flower Mound homeowners, a denied claim can delay roof repairs, expose interiors to additional water damage, and lower property value. This guide explains your rights, the relevant Texas statutes, and the practical steps you can take if your property insurance claim is denied.

Understanding Your Rights in Texas

1. The Contractual Right to Coverage

Your policy is a contract. Texas law requires insurers to adhere to the language of the policy and to pay covered losses promptly.2 Review your declarations page, exclusions, endorsements, and deductibles to confirm the scope of coverage. Because Texas permits multiple wind deductibles (hurricane, named storm, and all other wind/hail), check which applies to Flower Mound events.

2. The Right to Prompt Payment (Texas Insurance Code Chapter 542)

Texas Insurance Code §§542.055-542.060—often called the “Prompt Payment of Claims Act”—sets strict deadlines:

• 15 days after notice of claim to acknowledge receipt, start an investigation, and request any additional information.

• 15 business days after receiving all requested info to accept or reject the claim in writing.

• 5 business days to pay after agreeing to pay.

If an insurer misses these deadlines without a valid extension, it owes statutory interest (currently 18% per year) plus attorney’s fees.3

3. The Right to Fair Settlement Practices (Texas Insurance Code Chapter 541)

Chapter 541 prohibits unfair or deceptive acts, including misrepresenting policy provisions, failing to attempt prompt and fair settlement, and refusing reasonable claims without proper investigation.

4. The Right to Appraisal

Most Texas policies contain an “Appraisal” clause—an alternative dispute process where each side hires an appraiser, and the two select an umpire.4 The appraisal decision resets only the value of loss, not coverage eligibility.

Common Reasons Property Insurance Companies Deny Claims in Texas

1. Wear and Tear or Pre-Existing Damage

Insurers frequently cite policy exclusions for “age-related deterioration.” If a roof was already beyond its expected life, the carrier may argue the hail merely revealed existing problems.

2. Late Reporting

Under Texas Insurance Code §862.053, policyholders must provide “prompt notice” of a loss. Carriers sometimes deny claims reported months after the storm, asserting prejudice from delayed investigation.

3. Lack of Maintenance

Failure to maintain gutters, flashing, or drainage may give the insurer a defense under the “Neglect” exclusion in standard ISO HO-3 policies.

4. Disputed Cause of Loss

Carriers may attribute interior water damage to foundation movement or plumbing leaks (excluded) rather than storm-created openings (covered). Obtaining an independent engineer’s report can rebut these findings.

5. Policy Exclusions or Endorsements

Flower Mound homes built before 2002 sometimes carry cosmetic-damage exclusions, which bar payment for metal roof dings that do not penetrate the decking. Insurers also apply Actual Cash Value (ACV) endorsements that depreciate roof materials, dramatically lowering payouts.

Texas Legal Protections & Regulations

1. Texas Insurance Code Chapter 542A (Weather-Related Claims)

Effective September 1, 2017, Chapter 542A governs “forces of nature” claims, including hail, wind, and tornado. Policyholders must send a 60-day presuit notice stating the amount in controversy and attorney fee calculations.5 This statute also permits insurers to assume liability for adjusters, potentially limiting who you sue.

2. Texas Administrative Code Title 28, Part 1, §21.203

This rule outlines unfair settlement practices, mirroring Chapter 541. Violations can provide grounds for administrative penalties and private lawsuits.

3. Statute of Limitations

The contractual limitations period in most Texas homeowners policies is two years and one day from the date the insurer denies the claim. If the policy is silent, Texas’s general four-year statute for contract cases (Tex. Civ. Prac. & Rem. Code §16.004) may apply. Always confirm the exact deadline in your policy.

4. Licensing Rules for Texas Attorneys

Only attorneys licensed by the State Bar of Texas may represent you in court. Verify licensure at the Texas Bar’s Official Website.

Steps to Take After a Denial in Texas

Request a Written Denial Letter Texas Insurance Code §542.056 requires the insurer to explain the “specific reasons” for denial. Ask for the adjuster’s photos and estimate.

Compare with Local Building Codes Flower Mound enforces the 2021 International Residential Code (IRC). If the insurer refuses code-required upgrades, cite the ordinance or law coverage in your policy, if any.

Gather Independent Evidence Hire a licensed public adjuster or roofing contractor experienced in Texas Windstorm claims. Obtain weather data from the Storm Prediction Center for the date of loss.

File an Internal Appeal Many insurers allow a second review. Provide new photos, expert reports, and receipts for temporary repairs.

Complain to the Texas Department of Insurance You may file online, by mail, or fax. Include policy number, claim number, and all correspondence. TDI will forward the complaint to the carrier, which must respond within 15 days under 28 TAC §1.602.

Consider Appraisal If the dispute is only over the amount, invoke appraisal in writing. Pay careful attention to time limits in the policy. Appraisal awards are binding absent fraud or procedural irregularities.

Consult a Texas Attorney If coverage is in dispute, or if 542 interest is accruing, legal counsel can evaluate bad-faith damages and preserve litigation deadlines.

When to Seek Legal Help in Texas

Indicators You Need a Lawyer

• The insurer continues to deny despite new evidence.

• Your claim involves complex damage (e.g., slab leaks, stucco walls, or solar panels).

• Multiple dwelling or ordinance upgrades are at issue.

• The carrier misstates Texas law or your policy terms.

• 542 deadlines have passed and no payment issued.

What a Texas Attorney Can Do

A lawyer can:

• Send the statutory 60-day notice under Texas Insurance Code §541 and §542A.

• Demand appraisal or skip it if waiver applies.

• File suit in Denton or Tarrant County District Court or remove to federal court under diversity jurisdiction.

• Pursue 18% interest, attorney fees, treble damages for intentional bad faith, and court costs.

Local Resources & Next Steps

1. Flower Mound Building Inspections Division

For permits, code upgrades, and inspection reports: 972-874-6355.

2. Denton County Clerk – Real Property Records

Obtain deed restrictions, prior storm damage disclosures, or liens.

3. Texas Windstorm Insurance Association (TWIA)

Although TWIA policies are rare this far inland, Flower Mound homeowners with secondary coastal property should know TWIA’s separate dispute rules.

4. Public Adjusters

Verify license status via TDI’s Agent Lookup.

5. Mediation & ADR

TDI offers a voluntary mediation program for personal-lines claims under Tex. Ins. Code §541.161. Either party may request mediation; costs are split.

Conclusion

A claim denial can feel final, but Texas law provides strong remedies for Flower Mound homeowners. By understanding prompt-payment deadlines, unfair-claim-practice rules, and local building codes, you level the playing field. Preserve documentation, act before contractual limitations expire, and seek professional help when needed.

Disclaimer: This guide is for informational purposes only and does not constitute 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.