Texas Property Insurance Law Guide for San Antonio Owners

Estimated Read Time: 13 min read

Introduction: Why Texas Property Insurance Rights Matter in San Antonio

San Antonio homeowners know that Central Texas weather can be unpredictable—hailstorms smash roofs in the spring, tropical remnants push water into attics during hurricane season, and our humid climate fosters mold growth that can lurk behind walls. When disaster strikes, you rely on your insurer to honor the promises in your policy. Unfortunately, many policyholders experience claim delays, lowball repair estimates, or outright denials. Understanding Texas property insurance law and how it applies in San Antonio is essential to protect your largest investment—your home.

This comprehensive guide breaks down the statutes, deadlines, and practical steps you need to know if you have a property damage dispute, with a special focus on mold damage. Whether you are battling a slow claims adjuster, fighting for coverage of a busted pipe that led to microbial growth, or disputing the scope of hail repairs, the information below will empower you to push back. Remember, Texas law often favors policyholders—if you know how to invoke those protections.

Understanding Texas Property Insurance Law

Key Statutes in the Texas Insurance Code

• Prompt Payment of Claims Act (Tex. Ins. Code §§542.051–.061): Insurers must acknowledge, investigate, and pay or deny claims within tight deadlines. Failure can trigger 18% interest and attorney’s fees.

• Unfair Settlement Practices (Tex. Ins. Code §541.060): Prohibits misrepresentation, lowball offers, or refusing to pay without a reasonable investigation.

• Mold Coverage Regulations (Tex. Ins. Code § 20.50 & 28 TAC §21.1007): Requires separate mold coverage endorsements and clarify what mold remediation costs must be covered after a covered water event.

The Role of the Texas Department of Insurance (TDI)

TDI licenses insurers, sets rules for mold remediation coverage, and accepts consumer complaints. If your carrier drags its feet, a well-documented TDI complaint can push the file forward and create a paper trail for bad-faith damages later. Visit the Texas Department of Insurance website for complaint forms and consumer guides.

The Prompt Payment Timeline

• Within 15 days of receiving written notice of loss, the insurer must acknowledge the claim, begin an investigation, and request any additional information.

• Within 15 business days of getting all requested info, the insurer must accept or deny the claim in writing.

• Within 5 business days of agreeing to pay, the insurer must issue the check.

Violations add up quickly. Under Texas Insurance Code §542.060, you may recover the amount owed plus 18% annual interest and reasonable attorney’s fees.

Common Property Insurance Disputes in Texas

Wind and Hail Damage

South-Central Texas is in “Hail Alley.” Insurers often argue cosmetic versus functional damage or use ambiguous roofing exclusions. Demand a reputable local contractor’s inspection and invoke the policy’s appraisal clause if valuations differ.

Water Damage and Mold

San Antonio’s humid climate accelerates mold growth after pipe bursts, AC leaks, or roof failures. Many Texas policies limit mold remediation to $5,000–$10,000 unless you purchased a buy-back endorsement. Yet, under Texas Insurance Code §542A.003, carriers must still cover reasonable remediation tied to a covered water loss. Disputes often center on the scope of tear-out or whether the mold existed before the water event.

Hurricane and Tropical Storm Losses

While San Antonio is 140+ miles inland, remnants of Gulf storms can dump double-digit inches of rainfall. Disputes may arise over wind versus flood causation. Flood is excluded unless you carry a separate NFIP policy. Document high-water lines and obtain meteorological data to establish wind-driven rain coverage.

Fire and Smoke

Texas policies generally cover fire but carriers sometimes exclude smoke odor remediation or claim arson. An independent origin-and-cause expert can rebut insurer findings.

Scope of Repairs and Code Upgrades

San Antonio’s Building Standards Board often requires code upgrades—electrical rewiring, impact-resistant windows, or mold-resistant drywall. Disputes emerge when carriers refuse to pay Ordinance or Law coverage. Review policy endorsements; Texas courts have compelled payment when upgrades are legally required (see Lamar Homes, Inc. v. Mid-Continent, 242 S.W.3d 1 (Tex. 2007)).

Texas Legal Protections & Recent Court Rulings

Statutory Deadlines and Notice Requirements

• Statute of Limitations: Contract actions in Texas generally carry a four-year limit (Tex. Civ. Prac. & Rem. Code §16.051), but many policies shorten this to two years and one day. Courts uphold these clauses if “clear and conspicuous.”

• Pre-Suit Notice (Tex. Ins. Code §542A.003): 60 days before filing suit, you must send detailed notice of the claim, damages, and attorney’s fees. Failure can pause the lawsuit.

• Appraisal Demand: Most policies require written demand within months of the loss; Texas courts (e.g., Barbara Techs. v. State Farm, 589 S.W.3d 806 (Tex. 2019)) confirm appraisal awards do not bar bad-faith claims.

Bad-Faith and Extra-Contractual Damages

If an insurer knowingly misrepresents coverage, the court may award up to treble damages under Tex. Ins. Code §541.152. A 2022 Bexar County jury awarded homeowners $1.2 million when an insurer ignored obvious mold and water intrusion, showing juries in San Antonio are receptive to policyholder evidence.

Steps to Take After a Property Insurance Dispute

1. Preserve Evidence

• Photograph damage immediately—wide shots and close-ups.

• Save debris, damaged drywall, or mold-infested materials in sealed bags for potential testing.

• Keep a written timeline: date of loss, calls, adjuster visits, and communications.

2. Mitigate Further Damage

Texas policies require reasonable mitigation. Hire an IICRC-certified mold remediation company within 24-48 hours of a water event. Document invoices; mitigation costs are reimbursable.

3. Get Independent Estimates

Obtain at least two contractor or public adjuster estimates. Many San Antonio contractors use Xactimate—the same software carriers use—making differences in scope easy to spot.

4. Demand Appraisal if Valuation Differs

Submit a written appraisal demand citing the policy provision. Each party selects an appraiser; the appraisers choose an umpire. The umpire’s signed award is binding on value but not on coverage disputes or bad faith.

5. File a Complaint with TDI

If the carrier violates prompt-payment rules, complete the online form at TDI Consumer Complaints. Include claim numbers, dates, and correspondence. TDI will contact the insurer within days, often accelerating payment.

6. Track All Deadlines

Note the policy’s suit-limitation clause and the 60-day pre-suit notice under §542A. Missing these windows can bar recovery.

When to Seek Legal Help in Texas

Red Flags Requiring an Attorney

• Carrier blames “pre-existing” mold despite a sudden water loss.

• Claim is denied based on an engineer’s report you never received.

• Payment is far below contractor estimates and adjuster refuses to revise.

• Appraisal invoked, but insurer stalls the selection of an umpire.

An experienced San Antonio insurance attorney can issue subpoenas, depose adjusters, and leverage bad-faith statutes to maximize recovery.

The Louis Law Group Advantage

Louis Law Group focuses exclusively on policyholder rights, never representing insurers. Our Texas-licensed attorneys handle prompt-payment penalties, appraisal enforcement, and mold-related coverage disputes across Bexar County and surrounding areas.

Local Resources & Next Steps

Bexar County District Courts – Filing information for property insurance lawsuits. San Antonio Bar Association Lawyer Referral – Initial 30-minute consultations at reduced rates. Texas Law Help – Free legal forms and guidance for low-income homeowners.

Next Step: Gather your claim file, independent estimates, and any denial letters. Then call Louis Law Group at 833-657-4812 for a free case evaluation and policy review. We will analyze your prompt-payment penalties, assess bad-faith exposure, and advise on appraisal or litigation options.

Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Consult a qualified attorney licensed in Texas for advice regarding your specific situation. Reading or using this content does not create an attorney–client relationship.

Final Thoughts

Texas property insurance law provides strong tools—prompt-payment penalties, bad-faith statutes, and appraisal rights—to level the playing field for San Antonio homeowners. By documenting every step, invoking statutory protections, and engaging experienced counsel when necessary, you can force insurers to honor their contractual obligations. If your property insurance claim has been delayed, underpaid, or denied, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review today.