Texas Property Insurance Law San Antonio Guide & Rights

11 min read

Introduction: Why San Antonio Homeowners Must Know Their Texas Property Insurance Rights

San Antonio’s humid climate, Gulf-driven storms, and aging housing stock make property insurance claims a fact of life for many homeowners. Whether you are recovering from mold damage after a plumbing leak, wind and hail losses during spring storms, or the widespread freeze events Texas has seen in recent years, you need to know how the Texas Insurance Code protects you. Unfortunately, carriers do not always pay what they owe. Policyholders routinely face claim delays, underpayments, and outright denials. A solid grasp of the law—and a willingness to enforce your rights—can be the difference between a fair recovery and absorbing thousands of dollars in repairs out-of-pocket.

This guide provides San Antonio, Texas homeowners with a step-by-step roadmap to navigate property insurance disputes. We focus on mold damage claims but also cover the broader protections available under Texas law. The information below is drawn from the Texas Insurance Code, Texas Department of Insurance (TDI) regulations, and leading court decisions. While the article slightly favors policyholders, every statement is fact-based, verifiable, and presented in plain English.

Understanding Texas Property Insurance Law

Key Statutes in the Texas Insurance Code

• Chapter 542 – Prompt Payment of Claims Act (PPCA): Requires insurers to acknowledge, investigate, and pay or deny claims within strict timelines. Failure triggers interest of 18% per year plus attorney’s fees.

• Chapter 541 – Unfair Methods of Competition and Unfair or Deceptive Acts or Practices: Creates a private right of action for bad faith, misrepresentations, and unfair settlement practices.

• Chapter 542A – Severe Weather Claims: Adds pre-suit notice and inspection requirements for claims arising from weather events (wind, hail, and hurricane losses).

• Chapter 558: Governs construction defect claims that often overlap with mold remediation issues.

How the Prompt Payment Deadlines Work

• Notice of Claim: You must notify your insurer of the loss—ideally in writing—"promptly" (your policy may define this term, but Texas courts have held that notice within weeks is typically reasonable).

• 15 Days to Acknowledge: Under Tex. Ins. Code §542.055, the insurer has 15 calendar days (30 if surplus lines) to acknowledge receipt, begin an investigation, and request any additional information.

• 15 Business Days to Decide: After receiving all requested information, the carrier has 15 business days to accept or reject the claim. They may extend once for 45 days with a written explanation.

• 5 Business Days to Pay: Once the company agrees to pay, funds must be issued within five business days.

Miss any of these deadlines? The insurer may owe 18% annual interest plus reasonable attorney’s fees. Courts frequently enforce these penalties, underscoring the leverage policyholders have.

Bad Faith & Deceptive Practices

If your carrier misrepresents coverage, lowballs a settlement, or drags its feet unreasonably, you may bring a lawsuit under Chapter 541 for treble damages. Classic examples include:

• Using an unqualified engineer to deny wind damage.

• Failing to investigate hidden mold behind walls after a covered leak.

• Misleading you about policy exclusions not actually in your contract.

Because bad-faith damages are in addition to the underlying loss, they can significantly increase recovery amounts.

Common Property Insurance Disputes in Texas

Mold Damage (High Impact in Humid San Antonio)

Mold claims present unique challenges. Texas law requires insurers to follow strict remediation standards, and many policies contain sub-limits or exclusions. Yet coverage often exists when mold results from a covered peril such as a sudden pipe burst or roof leak. Disputes regularly arise over:

• Causation: Insurers blame “long-term” or “maintenance” conditions to avoid paying.

• Scope of Remediation: Texas requires licensed mold assessors and remediators to draft protocols. Carriers may fund only superficial cleaning, ignoring hidden growth.

• Sub-limits: Policies may cap mold at $5,000; yet if the mold is the result of a covered water loss, the entire build-back may be owed.

Wind & Hail

Spring supercells frequently pummel Bexar County with hailstones exceeding two inches. Insurers sometimes deny roof claims by asserting “wear and tear.” Texas courts have held that when wind or hail physically damages shingles, coverage exists—even if the roof was near the end of its life.

Winter Freeze & Water Damage

The February 2021 winter storm demonstrated how power outages lead to burst pipes and subsequent mold outbreaks. While most policies cover sudden pipe ruptures, carriers often dispute whether water mitigation was “timely.” Documenting all repair efforts is crucial.

Fire & Smoke

Disputes commonly center on smoke damage. Insurers sometimes pay to replace charred studs but refuse to address pervasive odor and soot within ductwork, though Texas courts have ruled smoke is a covered physical loss.

Scope & Pricing Disagreements

Even when liability is accepted, disagreements over the amount of loss persist. Carriers rely on estimating software such as Xactimate, which may undervalue labor and material costs in the San Antonio market.

Texas Legal Protections & Regulations

Statutory Deadlines (Statute of Limitations)

• Contractual limitation: Most property policies require suit within two years from the date of damage. Texas courts usually enforce these provisions unless tolled by appraisal.

• Chapter 541 actions: Two-year statute of limitations from the date the unfair act occurred or when it should have been discovered (Tex. Ins. Code §541.162).

• Chapter 542 actions: Two years plus 180 days after the insurer’s violation (Tex. Ins. Code §542.060).

The Appraisal Clause

Nearly every Texas homeowner’s policy includes an appraisal process to resolve amount-of-loss disputes. Key points:

• Either party can demand appraisal in writing. In San Antonio, most carriers respond within 20 days.

• Each side nominates an independent appraiser; the two appraisers select an umpire. If they cannot agree, a court can appoint an umpire under Tex. Civ. Prac. & Rem. Code §171.041.

• The award is binding on amount only, unless there is evidence of fraud or bias.

Recent Texas Supreme Court cases (State Farm v. Johnson, Ortiz v. State Farm) confirm courts cannot decide “coverage” until appraisal is complete. Policyholders should weigh the pros (speedy resolution) against the cons (fees, limited bad-faith leverage) before invoking appraisal.

Bad Faith Penalties & Interest

In Barbara Technologies Corp. v. State Farm Lloyds (2019), the Texas Supreme Court held appraisal does not extinguish PPCA interest. Insurers risk 18% interest even when they pay the award late.

Recent Court Rulings Affecting Mold Claims

• Liang v. State Farm Lloyds (W.D. Tex. 2022): Court allowed homeowner’s bad-faith mold claim to proceed where insurer failed to inspect behind walls.

• Pena v. Allstate Vehicle & Prop. Ins. Co. (S.D. Tex. 2020): Appraisal award did not bar subsequent bad-faith claim where insurer’s adjuster ignored Texas mold remediation rules.

Steps to Take After a Property Insurance Dispute

1. Immediate Documentation

• Photograph and video all affected areas, including moisture readings and visible mold growth.

• Keep damaged materials (e.g., baseboards) until the insurer inspects. Texas courts favor policyholders who preserve evidence.

• Log every call, email, and letter with the adjuster.

2. Mitigate Further Damage

Your policy requires “reasonable emergency measures.” In mold situations, that often means hiring a water remediation company within 24–48 hours. Save invoices; reasonable mitigation costs are reimbursable.

3. Secure Independent Estimates

Obtain a licensed mold assessor’s protocol and at least two contractor bids. Present these to the insurer. If they refuse, you have comparative evidence for appraisal or litigation.

4. File a Complaint with the Texas Department of Insurance

If the carrier remains non-responsive, submit a complaint online with the Texas Department of Insurance Consumer Help Line. TDI will request a written response from the company, often prompting faster action.

5. Preserve Your Legal Rights

Send a certified, written demand letter citing Tex. Ins. Code §§541 & 542. Include:

• Detailed description of damages.

• Amounts owed per your contractor’s estimate.

• Deadline for payment (e.g., 15 days).

This letter can be used later to establish bad-faith penalties.

When to Seek Legal Help in Texas

Indicators You Need an Attorney

• Carrier delays past statutory deadlines.

• Repeated lowball offers that won’t cover repairs.

• Denial based on questionable exclusions or “pre-existing” damage.

• Complex mold protocols costing more than the policy sub-limit.

Texas attorneys must be licensed by the State Bar of Texas. Most reputable property insurance lawyers take cases on contingency, advancing costs for experts and only recovering fees if they secure a settlement or judgment. Louis Law Group has a dedicated Texas practice team experienced in San Antonio’s unique climate risks, including mold and water damage claims. We enforce the Prompt Payment of Claims Act, pursue appraisal when advantageous, and litigate bad-faith actions in Bexar County District Court and the U.S. District Court for the Western District of Texas.

Local Resources & Next Steps

Texas Department of Insurance (TDI): Consumer helpline 800-252-3439; TDI website.

• Bexar County District Clerk: For filing lawsuits – 101 W Nueva St, San Antonio, TX 78205.

• U.S. District Court, Western District of Texas – San Antonio Division: 655 E Cesar E Chavez Blvd.

• San Antonio Bar Association Lawyer Referral Service: 210-227-1853.

• Legal Aid Society of San Antonio: 800-369-0356 for income-qualified residents.

Ready to take 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. Our attorneys fight to maximize Texas property damage claims and protect San Antonio homeowners’ rights.

Legal Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship. Consult a licensed Texas attorney for advice regarding your individual situation.