Fort Worth Guide to Texas Property Insurance Law & Mold Claims

13 min read

Introduction: Why Fort Worth Homeowners Need to Know Their Rights

From sudden summer downpours that leave crawl spaces soaked to the hail-laden thunderstorms that blow in from the West Texas plains, Fort Worth’s climate subjects homes to a unique mix of water intrusion, high humidity, and rapid temperature swings. Those conditions are fertile ground for mold growth, and when mold damage occurs, many policyholders discover that their insurer is quick to limit coverage, delay inspections, or deny the claim altogether. Understanding your rights under Texas property insurance law is therefore critical if you own a home in Fort Worth. This guide—written with a slight but unapologetic bias toward protecting homeowners—explains the statutes, deadlines, and strategies you need to know when your insurer drags its feet, underpays, or flat-out refuses to cover a mold-related loss.

The Texas Insurance Code, recent court cases from the Second Court of Appeals in Fort Worth, and bulletins issued by the Texas Department of Insurance (TDI) establish clear legal duties for property insurers. Yet carriers still issue lowball estimates, blame pre-existing conditions, or invoke broad mold exclusions even when the damage stems from a covered water event. Equipped with the information below—and with the experienced team at Louis Law Group just a phone call away at 833-657-4812—you can push back with confidence.

Understanding Texas Property Insurance Law

1. Key Statutes Every Fort Worth Policyholder Should Know

Texas Insurance Code Chapter 541 – Unfair Methods of Competition & Unfair or Deceptive Acts or Practices. Violations can trigger actual damages, treble damages if the insurer acted knowingly, plus attorney’s fees. Full text: Chapter 541. Texas Insurance Code Chapter 542 – Prompt Payment of Claims Act (PPCA). Sets strict time frames: 15 days to acknowledge, investigate, and request information (5 extra days if due to a catastrophic event); 15 business days to accept or reject the claim after receiving all information; and 5 business days to pay once liability is accepted. Interest (currently 18 percent) and attorney’s fees accrue on late payments. See the statute: Chapter 542.

• Texas Property Code § 27.01 – Residential Construction Liability Act. Governs pre-suit notice and opportunity to repair when mold arises from construction defects.

• Two-Year Statute of Limitations for Bad-Faith Actions. Most lawsuits alleging violations of Chapters 541 or 542 must be filed within two years of when the unfair act occurred or could reasonably have been discovered.

2. The Interplay Between Mold Exclusions and Texas Endorsements

Standard Texas homeowners (HO-3) policies issued after 2005 typically exclude long-term mold, wet rot, and dry rot. However, the same policy must cover mold that results directly and solely from a covered peril, such as a sudden pipe burst or a tornado-damaged roof. Carriers also offer optional mold endorsements that expand coverage up to a dollar sublimit set by the insured (often $5,000–$50,000). If your insurer accepted the water claim but later refuses to pay for mold remediation, it may be running afoul of Chapter 542’s prompt-payment deadlines and the policy’s anti-concurrent causation language.

3. Bad-Faith Standards Under Texas Law

Texas recognizes both common-law and statutory bad faith. Under the landmark case Arnold v. National County Mutual, 725 S.W.2d 165 (Tex. 1987), an insurer breaches its duty of good faith when it denies or delays payment without a reasonable basis. Statutory bad faith, codified in Chapters 541 and 542, provides additional remedies. Fort Worth juries have not been shy about penalizing carriers that ignore evidence of covered mold damage or rely on biased adjuster reports.

Common Property Insurance Disputes in Texas

While this guide focuses on mold, most mold disputes begin with another peril. Below are the most frequent claims triggering litigation in Tarrant County:

• Wind and Hail Damage. Fort Worth ranks among the top U.S. cities for severe hail. When roof punctures allow rain to seep into attics, mold can develop in as little as 24–48 hours.

• Water Damage from Plumbing Breaks. Burst supply lines and slab leaks saturate drywall and insulation—prime mold breeding grounds.

• Flash Flooding. Although flood is typically excluded under homeowners policies (requiring separate NFIP or private flood insurance), insurers must still cover ensuing mold if wind-driven rain or a covered peril caused the moisture.

• HVAC Failures. High humidity from malfunctioning air-conditioning creates condensation, spurring mold in ducts and wall cavities. Insurers frequently label this “maintenance,” but Texas courts look at whether the failure was sudden and accidental.

• Fire Losses and subsequent Water Damage. Fire departments’ suppression efforts can soak structural components; if not dried properly, mold follows. Insurers that pay for fire damage but refuse post-fire mold cleanup risk PPCA penalties.

Texas Legal Protections & Regulations

1. Statutory Deadlines That Bind Insurers

Prompt Payment of Claims Act Timeline

• 15 calendar days to acknowledge and commence investigation (Tex. Ins. Code § 542.055)

• 15 business days after receiving requested items to accept or reject the claim (§ 542.056)

• 5 business days to pay once the insurer agrees to pay (§ 542.057)

• 60 days to pay when an appraisal award is issued (per 2023 amendments)

Miss any of these and the carrier owes 18 percent annual interest plus your reasonable attorney’s fees—often the leverage that forces fair settlement.

2. The Appraisal Clause

Almost every Texas homeowners policy contains an appraisal provision allowing either party to demand a binding assessment of the loss amount. Key points:

• Timing: While policies seldom set a strict deadline, Texas courts expect the demand to be made within a “reasonable” period—generally before filing suit.

• Procedure: Each side selects an impartial appraiser; the appraisers choose an umpire. Agreement by any two of the three is binding on amount, but not on coverage.

• Mold-Specific Tip: Appraisal can separate the cost of water mitigation from mold remediation, helping insureds recover at least part of their loss while preserving the right to litigate coverage for excluded mold work.

3. Recent Court Rulings Shaping Mold Claims

In Hinojos v. State Farm Lloyds, 619 S.W.3d 651 (Tex. 2021), the Texas Supreme Court held that an insurer can still face PPCA liability even after paying an appraisal award late. The decision underscores that carriers must investigate and pay timely, rather than hide behind appraisal delays. Fort Worth trial courts have applied Hinojos to award interest and fees in mold cases where the insurer dragged its feet on water-loss inspections.

4. Penalties for Bad Faith

Under Chapter 541, treble damages kick in if the policyholder proves the carrier acted “knowingly,” which often includes ignoring visible mold colonization, dismissing independent hygienist reports, or misrepresenting policy terms. Combined with attorney’s fees, these penalties can dwarf the original claim value—powerful motivation for insurers to negotiate.

Steps to Take After a Property Insurance Dispute

1. Document Everything—Immediately

• Photograph and Video the mold affected areas, water source, and any repairs in progress.

• Keep a Claim Diary noting each call, e-mail, or text with the adjuster.

• Retain Samples and Reports from industrial hygienists or mold assessors licensed under the Texas Mold Assessment and Remediation Rules (25 TAC §§ 295.301-.338).

2. Mitigate but Do Not Destroy Evidence

Texas policies require you to prevent further damage, but carriers sometimes weaponize this duty by accusing homeowners of “over-remediation.” Hire a licensed contractor to perform limited, documented dry-out and containment. Save removed drywall sections when feasible, and photograph moisture-meter readings.

3. Obtain Independent Estimates

Many Fort Worth restoration companies offer free scopes of work using Xactimate pricing. Independent bids expose underpayments and can be used later in appraisal or litigation.

4. Demand Appraisal When Appropriate

If the dispute is solely over the price of remediation or build-back, send a written appraisal demand via certified mail. Under Texas law, doing so preserves your right to recover interest under Chapter 542 if the insurer still pays late.

5. File a Complaint with TDI

When the carrier violates prompt-payment deadlines or repeatedly cancels inspections, submit a complaint online with the TDI Consumer Help Desk. Although TDI cannot adjudicate coverage, its inquiry often triggers faster insurer responses.

6. Track the Statute of Limitations

Mark two critical dates on your calendar:

• Two Years from the date of breach or discovery to file bad-faith or deceptive-practice suits.

• Four Years contractual limitations period (many policies shorten this to two years). Read your policy; if shortened, treat that date as absolute.

When to Seek Legal Help in Texas

Insurance carriers employ adjusters, engineers, and counsel whose sole mission is to minimize payouts. You should consider calling a Fort Worth insurance attorney when:

• The insurer denies mold coverage even though the mold stems from a covered water event.

• You suspect the adjuster’s estimate is missing line items or uses unreasonably low pricing.

• The carrier exceeds PPCA deadlines or stops responding to your e-mails.

• You receive a Reservation of Rights letter citing exceptions you don’t understand.

• The insurer insists your damage is “pre-existing” or “maintenance,” despite evidence to the contrary.

How Louis Law Group Helps: Our attorneys are licensed in Texas and focus exclusively on property damage claims. We conduct policy reviews, hire trusted hygienists, and, when necessary, file suit in Tarrant County District Court or federal court to pursue underpayment, interest, and treble damages. Most cases are handled on contingency—no fees unless we recover for you.

Local Resources & Next Steps

• Texas Department of Insurance: Consumer hotline 1-800-252-3439; online complaint portal linked above.

• Tarrant County District Clerk: 100 N. Calhoun, Fort Worth, TX 76196; records property insurance lawsuits.

Texas Judicial Branch: Statewide docket and rules available at Texas Courts. Tarrant County Bar Association: Lawyer referral service—local bar website.

• Legal Aid of NorthWest Texas: Free or reduced-fee assistance for qualifying homeowners.

Next Steps: Review your policy, gather documents, and call Louis Law Group. We will evaluate coverage, calculate statutory interest, and outline a strategy—often at no cost unless we win.

Ready for Action?

If your property insurance claim has been delayed, underpaid, or denied, call 833-657-4812 for a free case evaluation and policy review. Let Louis Law Group fight for the full benefits you paid for.

Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Consult an attorney licensed in Texas regarding your specific situation. Past results do not guarantee future outcomes.