Mold Damage Guide: Texas Property Insurance Law – Garland

12 min read

Introduction: Why Garland, Texas Homeowners Must Understand Their Property Insurance Rights

Garland sits at the northeastern edge of the Dallas–Fort Worth Metroplex, a region that experiences high humidity, heavy spring thunderstorms, and occasional tornadoes. These conditions create a perfect breeding ground for mold after roof leaks, plumbing failures, or flood events. Unfortunately, many policyholders only discover how complicated mold damage claims can be after their insurer delays, underpays, or outright denies coverage. Texas law affords significant rights to homeowners, but you must know the rules—and act quickly—to protect your investment.

This comprehensive guide, slightly biased toward protecting policyholders, walks Garland homeowners through every stage of a property insurance dispute involving mold damage. We cover key provisions of the Texas Insurance Code, important deadlines, common insurer tactics, and practical steps to strengthen your position before you call an attorney. If you believe your mold damage claim is being mishandled, read on—or skip ahead to our call-to-action and dial 833-657-4812 for a free consultation with Louis Law Group.

Understanding Texas Property Insurance Law

Key Statutes Every Policyholder Should Know

• Texas Insurance Code Chapter 541 – Prohibits unfair or deceptive acts by insurers, including misrepresenting policy terms or failing to promptly settle claims.

• Texas Insurance Code Chapter 542 (Prompt Payment of Claims Act) – Sets strict timelines for insurers to acknowledge, investigate, and pay or deny claims. Violations can trigger 18% annual statutory interest plus attorney’s fees.

• Texas Insurance Code §542A – Requires presuit notice and detailed damage estimates before filing a lawsuit on a weather-related claim, but also allows the homeowner to “elect to name” the adjuster for potential personal liability.

• Texas Property Code §16.070 – Invalidates contractual provisions that shorten the four-year statute of limitations for breach-of-contract actions to less than two years.

• Texas Civil Practice & Remedies Code §38.001 – Grants attorney’s fees in breach-of-contract suits when the homeowner prevails.

Prompt Payment Deadlines

• 15 Days (20 for Surplus Lines) – Insurer must acknowledge the claim and request any additional information.

• 15 Business Days – After receiving all requested info, the insurer must accept or reject the claim—or explain why more time is needed.

• 45 Days – If an extension is claimed, the insurer gets an extra 45 days to make a decision.

• 5 Business Days – Once the claim is accepted, payment must follow within five business days.

Failure to meet these deadlines can open the door to statutory interest, penalties, and attorney’s fees—powerful leverage for Garland homeowners.

Common Property Insurance Disputes in Texas

While mold damage is our focus, understanding the broader landscape helps identify insurer patterns:

• Wind/Hail Damage – North Texas is in “Hail Alley.” Disputes often arise over replacement cost vs. repair cost, matching shingles, and cosmetic exclusions.

• Water Damage & Mold – Broken pipes, AC leaks, or storm-driven rain frequently lead to mold growth behind walls and under flooring. Some policies cap mold remediation at $5,000–$10,000 unless an endorsement was purchased.

• Hurricane & Tropical System Claims – Although Garland is inland, remnants of Gulf hurricanes can dump double-digit inches of rain, causing slab leaks and roof failures.

• Fire & Smoke Damage – Smoke particles can permeate insulation and drywall, creating hidden remediation costs policyholders must document clearly.

• Scope of Repair Disputes – Insurers may use third-party software (e.g., Xactimate) to generate estimates that leave out code upgrades or full replacement of affected materials.

Texas Legal Protections & Regulations

The Appraisal Clause

Most Texas homeowners policies include an appraisal provision—essentially a mini-arbitration—to resolve value disputes. Either side can demand appraisal in writing. Important points:

• Deadline: Generally none in the policy, but courts apply “reasonable time.” Demand appraisal early to avoid waiver arguments.

• Process: Each side selects a disinterested appraiser; the two appraisers pick an umpire. A majority decision sets the amount of loss.

• Binding? Texas courts treat an appraisal award as binding on the loss amount but not on liability.

• Costs: Each side pays its appraiser and splits the umpire fee.

Bad Faith Penalties

Under Chapter 541, policyholders can recover actual damages plus up to three times that amount if the insurer knowingly engaged in unfair practices. Common examples include:

• Claiming mold pre-existed even when moisture readings prove otherwise.

• Relying on biased “peer reviews” or “engineering reports” that omit key observations.

• Making “low-ball” offers below the cost of professional remediation.

Recent Court Rulings

• Ortiz v. State Farm Lloyds, 589 S.W.3d 127 (Tex. 2019) — Texas Supreme Court held that full payment of an appraisal award does not automatically absolve an insurer of bad faith if the insurer committed violations earlier in the process.

• Barbara Technologies Corp. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019) — Paying an appraisal award does not preclude prompt-payment penalties under Chapter 542.

Statutes of Limitation

Most first-party property insurance lawsuits must be filed within two years and one day of the date the insurer violates the Insurance Code or within four years for breach of contract, whichever is later. Beware of policy provisions attempting to shorten the timeframe—they may be unenforceable under Texas Property Code §16.070.

Steps to Take After a Property Insurance Dispute

Follow the checklist below to strengthen your mold damage claim and position yourself for possible litigation:

Document Immediately Take high-resolution photos and videos of visible mold, water staining, and damaged personal property. Keep a running log of dates, conversations, and corrective actions. Mitigate Further Damage Texas policies require reasonable efforts to prevent additional loss. Hire a licensed remediation company to install containment barriers and dehumidifiers. Keep all invoices. Request a Certified Copy of Your Policy Texas law allows you to demand your full policy. Compare exclusions and endorsements, especially any mold sub-limits. Secure Independent Estimates Obtain at least two remediation quotes from IICRC-certified mold specialists. Make sure the scope includes air scrubbers, HEPA vacuuming, and post-remediation verification. File a Written Complaint with the Texas Department of Insurance (TDI) If the insurer exceeds prompt-payment deadlines or issues a questionable denial, file online through the TDI Consumer Protection portal. (Texas Department of Insurance Complaint Process) Demand Appraisal (If Appropriate) If the only disagreement is the amount of loss, send a written appraisal demand via certified mail. Send a 60-Day Notice Letter Before filing suit under Chapter 541 or 542A, you must provide detailed notice and an itemized list of damages at least 60 days before filing. Consult a Garland Insurance Attorney Early legal advice can prevent costly mistakes, such as missing the statute of limitations or failing to preserve evidence.

When to Seek Legal Help in Texas

Not every delay or underpayment requires litigation, but certain red flags should push you to consult counsel:

• Insurer cites “wear and tear” or “pre-existing damage” without sending a qualified mold assessor.

• Payments arrive late, short of actual invoices, or with unexplained holdbacks.

• Claims adjuster pressures you to sign a broad release in exchange for partial payment.

• The carrier refuses to cover the cost of professional mold remediation or post-remediation testing.

Louis Law Group aggressively represents Texas homeowners in property damage disputes. Our attorneys are licensed in Texas, understand local building codes, and routinely coordinate independent moisture mapping and fungal spore testing to build airtight cases. If your property insurance claim has been delayed, underpaid, or denied, call 833-657-4812 for a free case evaluation and policy review.

Local Resources & Next Steps for Garland Residents

Texas Department of Insurance (TDI) – File complaints, verify adjuster licenses, and download consumer guides. Dallas Bar Association Lawyer Referral Service – Locate attorneys experienced in first-party insurance litigation. Texas Judicial Branch – Access case filings and local court information. TexasLawHelp.org – Free civil legal information for Texans.

Mold can spread in as little as 24–48 hours in Garland’s humid environment, so delay is your enemy. Act quickly, document meticulously, and use every statutory right Texas provides.

Call to Action

Don’t let an insurance carrier dictate the fate of your home. Contact Louis Law Group at 833-657-4812 today for a free case evaluation and policy review. Our team stands ready to enforce your rights under Texas law and secure the funds you need to fully remediate mold damage.

Legal Disclaimer: This guide is for informational purposes only, does not create an attorney-client relationship, and should not be taken as legal advice. Every claim is unique; consult a qualified attorney for guidance regarding your specific situation.