Texas Property Insurance Law Plano Guide: Protect Your Home

Introduction: Why Plano Homeowners Must Grasp Texas Property Insurance Law

If you own a home in Plano, Texas, chances are you have already weathered at least one significant storm, hail event, or burst pipe. North Texas regularly experiences extreme weather swings — scorching summers with high humidity, sudden cold snaps, and some of the nation’s worst hailstorms. These conditions frequently trigger water intrusion and mold damage, two of the most disputed issues in property insurance claims. Knowing your rights under Texas property insurance law Plano can be the difference between a fully funded repair and paying out of pocket.

Unfortunately, some insurers exploit policy complexity, delay investigations, underpay legitimate losses, or issue outright denials. Texas policyholders, however, are not powerless. The legislature, courts, and the Texas Department of Insurance (TDI) have created powerful remedies, including strict prompt-payment deadlines, appraisal rights, and bad-faith penalties. This guide explains those protections step by step, giving Plano homeowners the tools to push back confidently.

Read time: 12 min read

Understanding Texas Property Insurance Law

Key Statutes Protecting Policyholders

• Texas Insurance Code Chapter 542 – also called the Prompt Payment of Claims Act, imposes strict timelines for insurers to acknowledge, investigate, and pay claims.

• Texas Insurance Code Chapter 541 – prohibits unfair settlement practices and allows triple damages for knowing violations.

• Texas Insurance Code Chapter 543 – addresses certain weather-related claims, including wind and hail.

• Texas Deceptive Trade Practices Act (DTPA) – offers additional consumer remedies for misrepresentations in insurance sales or claims handling.

• Texas Civil Practice & Remedies Code §16.070 – limits how much an insurance policy can shorten the four-year statute of limitations for breach of contract (most policies impose a two-year-and-one-day clause).

Texas courts give these statutes real teeth. In Barbara Tech. Corp. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019), the Texas Supreme Court held that paying an appraisal award late can still trigger prompt-payment interest and attorney’s fees. More recently, Alvarez v. State Farm Lloyds, 601 S.W.3d 781 (Tex. 2020) reaffirmed that insurers cannot escape bad-faith liability simply by invoking appraisal.

How the Prompt Payment Act Works

• 15 calendar days to acknowledge the claim and request any additional information.

• 15 business days after receiving all requested information to accept or deny coverage.

• 5 business days after accepting the claim to pay.

• Failure to comply triggers statutory interest (currently 18% per year) plus reasonable attorney’s fees.

These deadlines apply whether the damage involves a caved-in roof, smoke residue, or the stubborn mold growth commonly found under warped flooring after a North Texas water loss.

Common Property Insurance Disputes in Texas

1. Mold Damage After Water Intrusion

Mold spreads quickly in Plano’s humid climate. Policies often limit mold coverage to $5,000 or exclude it unless the underlying water leak is sudden and accidental. Disagreements arise over:

• Whether long-term seepage caused the mold (usually excluded).

• The scope of remediation – e.g., are wall studs or HVAC components contaminated?

• Business-interruption or additional living expense coverage if the home is uninhabitable.

2. Hail and Wind Damage to Roofs

Collin County consistently ranks among the top counties for hail claims statewide. Insurers sometimes label impact fractures as “cosmetic” or blame “wear and tear” to avoid full roof replacement.

3. Water Damage and Burst Pipes

During Winter Storm Uri in 2021, subfreezing temperatures burst thousands of Texas plumbing lines. Many homeowners are still litigating whether faulty pipe insulation is excluded, or whether resulting mold is covered.

4. Fire and Smoke Losses

Even a small kitchen fire can coat the entire home in acid-rich soot. Insurers may approve cleaning but deny costly replacement of porous building materials, citing “like kind and quality” language.

5. Disputes Over Scope and Pricing of Repairs

Carriers rely heavily on estimating software (Xactimate or Symbility). Contractors in Plano often charge more due to labor shortages, leading to underpaid line items and disputes about overhead and profit (O&P) allowances.

Texas Legal Protections & Recent Court Rulings

Statutory Deadlines You Must Know

• Notice of Claim: Promptly “as soon as practicable,” but no later than the policy’s contractual limitations period (commonly two years and one day).

• Appraisal Demand: Most policies require written demand within 60 days after the parties reach an impasse. Missing the window can waive appraisal rights.

• Suit Limitation: Check whether your policy shortens the four-year statute to two years. Courts regularly enforce these clauses if clearly worded.

Bad-Faith Penalties

Under Chapter 541, a policyholder who proves the insurer knowingly acted unfairly can recover up to three times actual damages plus attorney’s fees. Unfair acts include misrepresenting policy language, failing to conduct a reasonable investigation, or offering substantially less than a claim is worth.

Recent Case Snapshot

• Menchaca v. USAA, 545 S.W.3d 479 (Tex. 2018) – clarified that insureds can recover under both contract and extra-contractual theories so long as they suffer an independent injury.

• Cause No. 380-06174-2022, Collin County – jury awarded homeowners $145,000 for underpaid hail damage plus 18% interest after State Farm delayed payment beyond Chapter 542 deadlines.

The Appraisal Process Explained

• Either party may demand appraisal in writing.

• Each side selects a competent, impartial appraiser.

• The two appraisers choose an umpire; if they cannot agree within 15 days, either may ask a court to appoint one.

• An award signed by any two of the three panel members is binding on amount of loss, though coverage defenses remain.

Appraisal can resolve price disputes quickly, but insurers sometimes use it to stall payment. Keep monitoring Barbara Tech. and post-appraisal bad-faith cases noted above.

Steps to Take After a Property Insurance Dispute

1. Document Everything Immediately

• Take high-resolution photos and video of all visible damage, including hidden mold or moisture behind baseboards.

• Keep a written log of every call, email, and letter exchanged with the insurer.

• Save receipts for emergency mitigation – fans, dehumidifiers, temporary lodging.

2. Obtain Independent Estimates

Hire a local licensed contractor or public adjuster familiar with Plano pricing. Their scope sheets often reveal omitted line items such as interior vapor barriers or code-upgrade costs under Ordinance & Law coverage.

3. Review Your Policy and Endorsements

Common endorsements impacting mold or water losses:

• Limited Fungi/Mold Coverage – typically caps at $5,000; some insurers sell buy-ups to $10,000 or $15,000.

• Water Damage Exclusion – may bar losses from continuous seepage over 14 days.

• Surface Water Exclusion – relevant if heavy Plano rainfall floods below-grade rooms.

4. Invoke Appraisal Early if Appropriate

If the dispute centers on price rather than coverage, appraisal can cut months off the process. Send your written demand via certified mail, referencing the exact policy provision.

5. File a Complaint with TDI

Escalating to regulators often prompts faster action. Submit evidence online through the TDI complaint portal. Insurers must respond to TDI within 15 days.

6. Track Prompt-Payment Deadlines

Create a simple spreadsheet with due dates (acknowledgment, decision, payment). When a deadline passes, reference Chapter 542 in your follow-up letter and request interest.

7. Preserve the Right to Sue

Send a Chapter 541 pre-suit notice at least 60 days before filing suit. Include: (1) specific complaints, (2) the amount of economic damages, (3) attorney’s fees incurred to date. This letter is mandatory and can increase settlement leverage by exposing the insurer to attorney fee shifting.

When to Seek Legal Help in Texas

Some disputes resolve through diligent self-advocacy; others require legal firepower. Consider consulting a Plano insurance attorney when:

• The insurer denies coverage outright, claiming “pre-existing damage” or “wear and tear.”

• Payment is far below independent estimates and the carrier refuses meaningful negotiation.

• You suspect claim-handling misrepresentations, especially about mold limits or water exclusions.

• Deadlines under the two-year-and-one-day contractual limitations clause are approaching.

Louis Law Group represents only policyholders — never insurance companies. Our attorneys are licensed in Texas, understand local building codes, and routinely engage trusted appraisers, industrial hygienists, and mold remediators to build airtight cases.

Fee structure: We advance costs and work on a contingency fee, meaning you owe nothing unless we recover funds for you under Texas law.

Local Resources & Next Steps

Regulatory and Court Contacts

Texas Department of Insurance (TDI) – consumer hotline 1-800-252-3439. Texas Insurance Code Online – full statutory text for Chapters 541 and 542. Texas Judicial Branch – locate Collin County District Courts and small-claims jurisdiction. State Bar of Texas – verify attorney licensing and disciplinary history.

Checklist Before Calling an Attorney

• Gather your full insurance policy (including declarations, endorsements, amendments).

• Print or save all claim correspondence and photos.

• Obtain at least one independent contractor or public adjuster estimate.

• Note all upcoming deadlines (appraisal, suit limitation, mortgage repair timelines).

Powerful Call to Action

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. We are ready to help Plano homeowners recover every dollar owed under Texas law.

Legal Disclaimer

This guide is for general information only and does not constitute legal advice. Reading it does not create an attorney-client relationship. Every claim is fact-specific; consult a qualified Texas attorney before taking action.