Guide to Property Insurance Rights – San Antonio, Texas

Introduction: Why San Antonio Policyholders Need a Texas-Specific Guide

With more than 1.4 million residents, San Antonio is no stranger to extreme weather. Bexar County routinely tops statewide hail-loss charts, and the National Weather Service has documented straight-line winds above 70 mph in multiple neighborhoods since 2021. When these events damage roofs, stucco, or foundations, homeowners file property insurance claims expecting prompt payment. Unfortunately, many discover that insurers deny, delay, or underpay. This guide—built exclusively for San Antonio homeowners—explains your legal rights under Texas law and outlines concrete steps to overturn a property insurance claim denial.

Understanding Your Property Insurance Rights in Texas

Key Rights Guaranteed by the Texas Insurance Code

• Prompt payment. Texas Insurance Code Chapter 542 (the Prompt Payment of Claims Act) generally requires an insurer to acknowledge a claim within 15 days, begin an investigation, and pay or deny within 60 days once it receives all requested items.

• Fair settlement practices. Chapter 541 prohibits insurers from misrepresenting policy language, failing to settle in good faith, or forcing an insured to sue to obtain benefits.

• Right to independent appraisal. Most Texas homeowner policies include an appraisal clause allowing either party to demand appraisal when the only dispute is the amount of loss.

• Right to sue. In Texas, a breach-of-contract lawsuit must be filed within four years, while actions under Chapters 541 or 542 usually must be filed within two years plus 180 days (Tex. Ins. Code §541.162).

Texas Statutes of Limitation at a Glance

• Breach of insurance contract: 4 years (Tex. Civ. Prac. & Rem. Code §16.004)

• Unfair settlement/deceptive practices (Ch. 541): 2 years + 180 days (Tex. Ins. Code §541.162)

• Prompt payment violations (Ch. 542): 2 years (incorporates CP&RC §16.003)

Common Reasons Property Insurance Companies Deny Claims in Texas

Insurers use several Texas-specific arguments to deny or reduce payment. Being aware of these tactics helps homeowners craft stronger rebuttals.

1. Late Notice of Claim

Your policy likely requires you to provide “prompt” notice. Texas courts have ruled that notice within months of discovering damage may still be prompt if no prejudice results (PAJ, Inc. v. Hanover Ins., 243 S.W.3d 630 (Tex. 2008)). Keep documentation showing when you first saw damage.

2. Wear, Tear, or Pre-Existing Damage

Especially common after San Antonio hail events, insurers blame damage on age or inadequate maintenance. A licensed public adjuster or structural engineer can often separate storm impacts from normal deterioration.

3. Exclusions for Cosmetic or Surface Damage

Texas-approved endorsements allow cosmetic roof exclusions, but they cannot exclude functional damage that compromises water-shedding integrity. Photographs of punctures, granule loss, or leaks will combat “cosmetic only” defenses.

4. Actual Cash Value (ACV) vs. Replacement Cost (RCV)

Many San Antonio policies pay only ACV until repairs are complete, creating a dispute over depreciation. Under Texas Department of Insurance (TDI) Bulletin B-0045-98, depreciation must be based on objective criteria, not arbitrary percentages.

5. Improper Use of the 90-Day Right to Reinspect

Chapter 542A permits carriers to reinspect before invoking appraisal. Some carriers issue quick denials and later claim new reinspections justify further delay. Track every inspection date and request written results.

Texas Legal Protections & Insurance Regulations

Texas Insurance Code Chapter 542A (Hail & Weather Claims)

• Applies to “forces of nature” losses—hail, wind, tornado, hurricane, etc.

• Requires a detailed pre-suit notice at least 60 days before filing suit.

• Gives insurers the option to assume liability for agents and adjusters, streamlining litigation.

Interest Penalties for Late Payment

Section 542.060 authorizes an 18% per-year statutory interest plus attorneys’ fees if the insurer violates prompt-payment deadlines—significant leverage during negotiations.

Administrative Remedies via the Texas Department of Insurance

The TDI Consumer Protection Division investigates unfair claims handling. Complaints can be filed online, by mail, or via fax. Although TDI does not litigate on your behalf, its findings often encourage insurers to resolve disputes sooner.

Texas Attorney Licensing & Fee-Shifting

Only lawyers licensed by the State Bar of Texas may provide legal advice or file suit. Under Ch. 542, prevailing policyholders can recover “reasonable” attorneys’ fees, making contingency representation feasible.

Steps to Take After a Property Insurance Claim Denial in Texas

Step 1: Read the Denial Letter Carefully

• Identify each exclusion or policy provision quoted.

• Note any deadlines—for example, a 60-day deadline to request appraisal.

Step 2: Gather Supporting Evidence

• Photographs of roof, siding, interior water stains, and personal property.

• Weather data (e.g., NOAA hail reports on the storm date).

• Independent repair estimates from San Antonio-area contractors.

Step 3: Request a Certified Policy Copy

Texas Insurance Code §542.003(b)(6) labels failure to provide policy documents as an unfair practice. Send a written request via certified mail.

Step 4: Invoke the Appraisal Clause (if Appropriate)

If you agree coverage exists but dispute the amount, submit an appraisal demand in writing. Choose an appraiser familiar with Central Texas construction pricing.

Step 5: File a Formal TDI Complaint

Visit the TDI complaint portal. Attach your denial letter, photos, and policy number. TDI will assign a case number and require the insurer to respond within 15 business days.

Step 6: Send a Chapter 542A Demand (for Weather-Related Losses)

Under §542A.003, your letter must specify the amount of damages, reasonable attorneys’ fees incurred to date, and the act or omission giving rise to the claim.

When to Seek Legal Help in Texas

Warning Signs You Need a Texas Attorney

• The insurer alleges “misrepresentation” or “concealment,” potentially voiding coverage.

• You received a Reservation of Rights letter reserving defenses.

• Damage exceeds $30,000, triggering complex Dwelling Coverage A sub-limits.

• The carrier refuses appraisal or ignores TDI requests.

Texas attorneys typically accept property insurance disputes on a contingency basis (no fee unless recovery). Because Ch. 542 allows fee-shifting, hiring counsel often pays for itself.

Local Resources & Next Steps

San Antonio-Area Agencies & Professionals

• TDI Southwestern Field Office (San Antonio) – Offers walk-in consumer assistance. Call 210-899-7302.

• Bexar County Dispute Resolution Center – Provides low-cost mediation that can satisfy policy “alternative dispute resolution” requirements.

• City of San Antonio Development Services – Issues roof permits and publishes wind-pressure requirements for repairs under the 2021 International Residential Code amendments.

Authoritative External References

Texas Insurance Code (Official Statutes) Texas Department of Insurance – Consumer Help TDI Guide: After a Storm NOAA Storm Events Database

Checklist Before You Call an Attorney

• Collect denial letter, policy, photos, estimates, and TDI complaint number.

• Prepare a timeline (date of loss, notice, inspections, denial).

• Review your deductible and coverage limits.

Legal Disclaimer: This guide provides general information for Texas residents and does not constitute legal advice. Consult a licensed Texas attorney for advice on your specific situation.

If your property insurance claim was denied, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review.