Texas Property Insurance Law Guide for San Antonio

10 min read

Introduction: Why Knowing Your Property Insurance Rights Matters in San Antonio

San Antonio homeowners face a unique mix of climate risks—tornado-spawned hail, heavy spring rains, flash floods along the San Antonio River, and the blistering summer heat that can promote hidden water intrusion and mold. When damage strikes, most policyholders expect their insurer to step up. Unfortunately, many Texas property owners encounter frustrating claim delays, partial underpayments, or outright denials. Understanding how Texas property insurance law protects you in San Antonio empowers you to push back and obtain every dollar your policy promises.

This guide—written for Bexar County residents—covers:

• Key provisions of the Texas Insurance Code and Prompt Payment of Claims Act

• Common dispute triggers such as mold contamination, hail roof losses, and water damage

• Statutory deadlines, the appraisal process, and bad-faith penalties

• Actionable steps to preserve evidence, negotiate effectively, and escalate complaints

• When to involve a San Antonio insurance attorney and how Louis Law Group can help

If your insurer is slow-walking or low-balling your claim, this is your roadmap to fair treatment—and, when necessary, legal leverage.

Understanding Texas Property Insurance Law

1. Texas Insurance Code Chapter 541 – Unfair Settlement Practices

Chapter 541 prohibits insurers from misrepresenting policy terms, failing to promptly settle clear-liability claims, or refusing to conduct a reasonable investigation. Homeowners can recover actual damages, court costs, and, when conduct is knowing, up to three times the amount of loss.

2. Texas Insurance Code Chapter 542 – Prompt Payment of Claims Act

• 15 days to acknowledge, begin an investigation, and request any additional information

• 15 business days (30 in certain catastrophes) to accept or deny the claim after receiving all requested items

• 5 business days to pay once the claim is accepted

Missing these deadlines triggers statutory interest (currently 18% per year) plus reasonable attorney’s fees.

3. Chapter 542A – Severe Weather Claims

For wind, hail, or hurricane-related losses, Chapter 542A adds a pre-suit notice requirement and the option for insurers to elect to assume liability for their adjusters—yet it preserves your right to sue for bad faith. If your loss stems from 2021’s winter storm Uri, these rules apply.

4. Statutes of Limitation in Texas

• Breach of contract: 4 years from the date the insurer breaches (often the denial date)

• Chapter 541 bad faith: 2 years

• Chapter 542 prompt-payment violations: 2 years

Check your policy’s suit-limitation clause; many attempt to shorten deadlines to 1–2 years, but Texas courts will not enforce periods shorter than two years in many homeowner forms.

Common Property Insurance Disputes in Texas

Mold Damage

San Antonio’s humidity, coupled with water leaks from hail-punched roofs or slab plumbing breaks, creates the perfect environment for mold. Many policies exclude fungus outright but reinstate limited coverage—commonly $5,000. Insurers frequently:

• Argue the mold resulted from maintenance issues rather than a covered peril

• Apply caps even when the underlying water damage is covered

• Refuse to pay for full remediation or necessary air testing

Texas law (Texas Insurance Code § 544.955) requires insurers that offer mold coverage to follow strict guidelines for disclosure and premium calculation. If your carrier mis-states the cap or fails to segregate mold from water repair costs, you may have grounds for penalty interest and extra-contractual damages.

Wind and Hail Roof Claims

Bexar County sits within Texas’s hail alley. Adjusters sometimes chalk up legitimate impact damage to “wear and tear.” Underpayment often stems from:

• Using outdated price lists for shingles and decking

• Ignoring building-code upgrades required by the City of San Antonio

• Refusing to pay for overhead & profit where multiple trades are needed

Water & Freeze Damage

From 2021’s winter storm to routine slab leaks, water claims spark frequent dispute about the source of loss. Insurers may invoke exclusions for repeated leakage or seepage. Yet the Texas Supreme Court in USAA Tex. Lloyds Co. v. Menchaca confirmed policyholders can still pursue bad-faith damages when an insurer’s conduct causes independent injury.

Fire & Smoke Losses

Insurers sometimes delay payments until an origin-and-cause report is complete. Texas law forces carriers to promptly pay undisputed amounts; they can’t withhold everything while investigating potential arson unless they have a reasonable basis.

Scope & Pricing Disputes

Even when coverage is conceded, the fight shifts to Xactimate line items—debris removal, high-profile shingles, or code-required ventilation. That is where Texas’s appraisal clause becomes crucial.

Texas Legal Protections & Regulations

The Appraisal Process

• Either side can invoke appraisal in writing.

• Each party selects a competent, disinterested appraiser within the period specified (commonly 20 days).

• The appraisers pick an umpire; if they can’t agree, a Bexar County judge appoints one under Tex. Civ. Prac. & Rem. Code § 171.041.

• An award signed by any two of the three is binding absent fraud or procedural irregularity.

Appraisal addresses amount of loss only—coverage questions and bad-faith claims survive. After Ortiz v. State Farm Lloyds (Tex. 2019), insurers often argue payment of an appraisal award extinguishes extra-contractual liability. However, later cases (In re National Lloyds, 2022) reaffirm that unreasonable delay before appraisal can still trigger Chapter 542 interest.

Prompt Payment Penalties

Under Chapter 542, failing to meet statutory deadlines adds 18% annual interest plus reasonable attorney fees—significant leverage on six-figure structural losses.

Bad Faith & Treble Damages

If an insurer knowingly acts unfairly under Chapter 541—such as ignoring clear moisture-meter readings that confirm mold from a storm-caused roof opening—courts may award up to three times actual damages. The landmark Barbara Technologies Corp. v. State Farm Lloyds (Tex. 2019) holds that even after an appraisal payment, an insured may pursue Chapter 542 penalties when the carrier breached prompt-payment duties.

Regulatory Oversight

The Texas Department of Insurance (TDI) regulates carriers, licenses adjusters, and accepts consumer complaints online or by phone (800-252-3439). TDI can order restitution, fines, and market-conduct exams but cannot award pain-and-suffering damages—that requires court action.

Step-by-Step Actions After a Property Insurance Dispute

1. Document Everything—Immediately

• Take date-stamped photos and video of all damage, including moisture stains that could lead to mold.

• Save receipts for tarps, dehumidifiers, and temporary lodging. Reasonable mitigation costs are usually reimbursable.

• Keep a claim diary noting phone calls, emails, and adjuster visits.

2. Request a Certified Copy of Your Policy

Texas Insurance Code § 551.003 gives you the right to a full copy. Compare exclusions, endorsements, and coverage caps yourself or with counsel.

3. Obtain Independent Estimates

Hire a licensed contractor or public adjuster experienced in San Antonio building codes. Detailed Xactimate or Symbility line items help rebut insurer scopes.

4. Invoke Appraisal (if limited to price dispute)

Send written demand via certified mail. Track timelines: failure to appoint an appraiser within policy deadlines could waive the insurer’s objections.

5. File a TDI Complaint

If deadlines pass or communication ceases, submit a complaint online with TDI. While not a substitute for litigation, it creates a regulatory paper trail.

6. Preserve Limitation Periods

Calendar two key dates: (1) the earlier of policy suit limitation or two years from unfair act; (2) four years from breach of contract. If time is short, a lawsuit tolls limitations and preserves rights.

When to Seek Legal Help in Texas

Not every claim requires counsel, but you should speak with a San Antonio insurance attorney when:

• Your insurer denies coverage while other homes on your street with similar damage were paid.

• You suspect bad-faith manipulation of causation (e.g., claiming mold pre-existed when a recent leak is obvious).

• Delay has pushed you near the statute-of-limitations deadline.

• The carrier demands an Examination Under Oath (EUO) and voluminous financial records.

• You receive a reservation-of-rights letter citing policy exclusions you do not understand.

Louis Law Group exclusively represents policyholders—not insurers. Our attorneys licensed in Texas negotiate, invoke appraisal, and, when needed, file suit in Bexar County District Court or federal court under diversity jurisdiction. We advance costs, consult trusted engineers, and only get paid when you do.

Local Resources & Next Steps

Texas Department of Insurance – Consumer Help Texas Insurance Code – Full Statutory Text Bexar County District Clerk – File or Track a Lawsuit San Antonio Bar Association – Lawyer Referral Service

Your home is likely your largest investment. Insurers bank on policyholders giving up when faced with confusing exclusions or endless document requests. Don’t go it alone. If your property insurance claim has been delayed, underpaid, or denied, call 833-657-4812 for a free case evaluation and policy review from Louis Law Group.