Texas Property Insurance Law Guide – Arlington Homeowners

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Introduction: Why Arlington, Texas Homeowners Need to Know Their Property Insurance Rights

Arlington sits squarely in the middle of the Dallas–Fort Worth metroplex, an area prone to severe thunderstorms, tornadoes, hail, and sudden freezes that can wreak havoc on North Texas homes. Add year-round humidity—and the mold growth it can spark—to the list, and property insurance claims are a fact of life for thousands of Arlington families each year. Yet many policyholders discover too late that their own insurer may delay, underpay, or flat-out deny legitimate claims. If you do not understand Texas property insurance law or the procedural timelines that govern insurers, you can lose thousands of dollars in coverage you have faithfully paid for.

This comprehensive guide empowers Arlington policyholders by explaining:

• Key provisions of the Texas Insurance Code that protect homeowners against unfair claim practices.

• Common property damage disputes—wind, hail, water, freeze, fire, and mold—and how Texas courts have treated them.

• Statutory deadlines insurers must meet under Texas prompt-payment laws.

• How the appraisal clause works, what to expect in mediation or litigation, and potential bad faith penalties.

• Tactical, step-by-step actions to strengthen your claim and preserve your legal rights.

• When—and why—to call in an experienced Arlington insurance attorney such as Louis Law Group.

Understanding Texas Property Insurance Law

The Texas Insurance Code: A Homeowner’s Shield

Texas has one of the nation’s most detailed statutory frameworks protecting policyholders. The primary protections appear in Chapters 541 and 542 of the Texas Insurance Code.

• Chapter 541 – Unfair Methods of Competition & Unfair or Deceptive Acts. This chapter allows homeowners to sue insurers for unfair claim settlement practices such as misrepresenting policy provisions or failing to conduct a reasonable investigation.

• Chapter 542 – Prompt Payment of Claims. Often called the “prompt-pay statute,” Chapter 542 sets strict deadlines from the time a claim is filed to the time payment must be tendered. Violations can trigger 18% annual interest and attorneys’ fees.

Read the full statutory language directly on the state website: Texas Insurance Code Chapter 542.

Statutory Prompt-Payment Deadlines

• 15 calendar days (or 30 days after a catastrophic weather event officially declared by the Texas Department of Insurance) to acknowledge the claim and request any additional information.

• 15 business days after receiving all requested items to accept or deny the claim in writing (may be extended to 45 days when justified).

• 5 business days after sending notice of acceptance to issue payment.

Missing any of these checkpoints subjects the insurer to statutory interest and potential bad-faith exposure.

Bad Faith & Extra-Contractual Liability

Beyond contractual duties, Texas recognizes a common-law and statutory duty of good faith and fair dealing. If an insurer denies a claim when liability is reasonably clear, delays investigation, or underpays without justification, the policyholder can sue for extra-contractual damages—including mental anguish and punitive damages—under the landmark Texas Supreme Court case Arnold v. National County Mutual Fire Insurance Co., 725 S.W.2d 165 (Tex. 1987).

Suit‐Limitation & Statutes of Limitation

• Breach of contract: Generally 4 years from date of breach, but most policies shorten the period to 2 years + 1 day. Courts will enforce contractual suit-limitation clauses if reasonable.

• Unfair claim practices (Tex. Ins. Code §541): 2 years from when the unfair act occurred or was discovered, with a maximum cut-off at 5 years.

• Prompt-pay violations (Tex. Ins. Code §542): 2 years from the insurer’s statutory violation.

• Deceptive Trade Practices Act (DTPA): 2 years + 180 days if the delay in filing was due to the insurer’s misrepresentation.

Timely legal action is critical; miss these windows and your otherwise valid claim can be barred.

Common Property Insurance Disputes in Arlington

1. Wind & Hail Damage

North Texas endures some of the country’s most severe hailstorms, often bringing quarter- to baseball-sized hail that punctures shingles, fractures skylights, and dents HVAC units. Insurers routinely discount legitimate hail damage as “cosmetic,” arguing no functional impairment—a position Texas courts have rejected when the damage shortens roof life or voids shingle warranties.

2. Water & Freeze Claims

The February 2021 Winter Storm Uri proved that Arlington is not immune to catastrophic freezes. Burst pipes usually trigger coverage, but insurers may argue the homeowner failed to maintain heat. Texas appellate courts hold the insurer has the burden to prove policy exclusions, not the insured.

3. Fire & Smoke Losses

Faulty wiring, lightning strikes, and kitchen mishaps generate claims where smoke damage spreads beyond visible charring. Disputes often center on deodorization and whether full replacement or cleaning is warranted.

4. Mold Growth—A Growing Concern

In humid Arlington summers, just 24–48 hours of untreated moisture can spur mold. Most policies exclude mold unless it stems from a “covered peril,” e.g., a sudden pipe burst. Even when covered, insurers may cap mold remediation at $5,000–$10,000. Knowing these sub-limits lets you strategize early, perhaps invoking the policy’s supplemental mold endorsement if purchased.

5. Scope & Pricing Disagreements

Even after coverage is confirmed, insurers frequently undervalue repairs by using out-of-area pricing software or omitting code upgrades now required by Arlington’s building department. Texas law allows you to challenge “scope” through the appraisal process or litigation.

Texas Legal Protections & Recent Court Rulings

Appraisal Clause: A Double-Edged Sword

Most Texas policies allow either party to demand appraisal when the dispute is only about the amount of loss, not coverage. Once invoked:

• Each side appoints a qualified, disinterested appraiser within the number of days (often 20) stated in the policy.

• The two appraisers select an umpire; if they cannot agree, a district court judge in Tarrant County may appoint one on motion.

• Award signed by any two of the three is binding unless fraud, bias, or procedural irregularity is proven.

Texas courts, including the Texas Supreme Court in State Farm Lloyds v. Johnson, 290 S.W.3d 886 (Tex. 2009), generally enforce appraisals, but you still retain the right to litigate bad-faith conduct or coverage denials.

Penalties for Unfair Claim Handling

If an insurer knowingly violates Chapter 541, the court may award up to treble damages. Under Chapter 542, the statutory interest rate is 18% per year on the amount still owed, plus reasonable attorneys’ fees.

Important Recent Rulings

• Barbara Technologies Corp. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019) – Payment of an appraisal award does not automatically absolve an insurer from prompt-pay liability.

• Ortiz v. State Farm Lloyds, 589 S.W.3d 127 (Tex. 2019) – Appraisal may preclude breach of contract damages but does not bar Chapter 541 bad-faith claims if wrongful conduct occurred prior to appraisal.

• Alvarez v. State Farm Lloyds, 601 S.W.3d 781 (Tex. App.—San Antonio 2019, pet. denied) – Insurer’s failure to adequately explain depreciation could constitute misrepresentation under Chapter 541.

Step-by-Step Actions After an Insurance Dispute

1. Document Everything Immediately

Use your smartphone to capture date-stamped photos and videos of all damage before any cleanup. Keep receipts for temporary repairs, hotel stays, and restoration invoices.

2. Mitigate Further Damage

Texas policies require reasonable steps to prevent additional loss (e.g., tarping a roof). However, temporary repairs are reimbursable when properly documented.

3. Obtain Independent Estimates

Insist on a line-item estimate from at least one reputable, Arlington-based contractor familiar with 2018 International Residential Code amendments adopted by the City of Arlington.

4. Review the Policy for Mold Endorsements & Sub-Limits

Locate any mold exclusions, sub-limits, or endorsements. If mold coverage is limited, ask your insurer to identify the exact policy language relied upon.

5. Keep Communication in Writing

Email adjusters rather than rely on phone calls. Written records are evidence if the dispute escalates.

6. Request a Certified Copy of Your Policy

Under Texas Insurance Code §551.051, insurers must provide one on request—vital if water-damage endorsements are at issue.

7. Invoke Appraisal (If Appropriate)

Send a dated, certified letter referencing the policy’s appraisal clause. Timely invocation can move a stalled claim to resolution, but consult counsel first if bad faith may be involved.

8. File a Complaint with the Texas Department of Insurance (TDI)

If deadlines are missed or an adjuster acts unfairly, submit an online complaint: TDI Consumer Complaint Portal. TDI will ask the insurer for a formal response—often motivating faster action.

9. Track All Statutory Deadlines

Use a spreadsheet to note the date you filed the claim, when the insurer acknowledged it, and each follow-up. Missing a deadline becomes powerful leverage in settlement negotiations.

10. Consult an Attorney Before the Two-Year Mark

The clock on lawsuits can run out faster than you think. An attorney will analyze breach, prompt-pay, and unfair-practice limitations to safeguard your claim.

When to Seek Legal Help in Texas

Many Arlington homeowners try to handle claims alone, only to hit a wall when the insurer rejects critical repairs or delays payment for months. Sizable claims—especially those involving structural framing, extensive mold remediation, or code-upgrade costs—often require legal advocacy to unlock full policy benefits.

Consult a lawyer if any of these occur:

• The insurer denies coverage citing wear-and-tear or pre-existing damage you believe is storm-related.

• A partial payment is tendered that does not match independent estimates, and the adjuster will not amend the calculation.

• The carrier demands an Examination Under Oath (EUO) and extensive document production—often a sign it is building a fraud defense.

• More than 60 days have passed with no payment—or any statutory deadline under Chapter 542 is blown.

• You suspect the insurer is undervaluing mold remediation or refusing to pay for industry-standard protocols.

Louis Law Group has recovered millions for Texas policyholders using a proven strategy: early claim evaluation, aggressive statutory-deadline enforcement, and skilled litigation when needed. Our attorneys are licensed in all Texas state courts and the U.S. District Courts for the Northern, Eastern, Southern, and Western Districts of Texas.

Local Resources & Next Steps

Key Agencies & Courts Serving Arlington

Texas Department of Insurance (TDI) – Consumer help line: 1-800-252-3439 Texas Judicial Branch – Docket searches & self-help forms Tarrant County District Clerk – Filing civil lawsuits, including insurance disputes State Bar of Texas Lawyer Referral Service – 1-800-252-9690

Checklist Before Calling an Attorney

• Gather the complete policy (declarations + endorsements).

• Print or save adjuster estimates, correspondence, and payment logs.

• Collect all photographs, invoices, and expert reports.

• Create a timeline of claim events with dates and names.

Free Case Evaluation If your Texas property damage claim has been delayed, underpaid, or denied, Louis Law Group can help. Call 833-657-4812 for a no-obligation policy review. We operate on contingency—no fees unless we win.

Legal Disclaimer: This guide provides general information for Arlington, Texas homeowners and is not legal advice. Reading this material does not create an attorney-client relationship. Consult qualified counsel regarding your specific situation and applicable deadlines.

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