Property Insurance Claim Guide – DeSoto, Texas

Introduction: Why DeSoto, Texas Homeowners Need This Guide

DeSoto sits at the southern edge of Dallas County, a region that routinely sees severe thunderstorms, hail, and even the occasional tornado. According to annual storm data compiled by the National Weather Service, large hail events have struck the 75115 ZIP code area multiple times in the last decade, causing millions in roof and structural damage. When the unexpected happens, DeSoto homeowners rely on their property insurance policies to repair roofs, fences, foundations, and interior water damage. Unfortunately, many policyholders receive a property insurance claim denial instead of the check they expected. This comprehensive guide—rooted in Texas statutes, regulations, and court opinions—explains how to protect your rights and move forward after a denial.

Understanding Your Rights in Texas

Key Policyholder Protections

• Prompt Payment of Claims Act (Texas Insurance Code §542.051-.061): Requires insurers to acknowledge, investigate, and pay or deny claims within specific deadlines—generally 15 days to acknowledge, 15 business days to accept or reject after receiving all requested items, and 60 days to pay once liability is established.

• Unfair Settlement Practices (Texas Insurance Code §541.060): Prohibits insurers from misrepresenting policy provisions, failing to attempt in good faith to settle, or denying without a reasonable investigation.

• Right to Receive the Full Policy: Under Texas Insurance Code §542.055, you may request a complete certified copy of your policy and all endorsements. This clarifies coverage, deductibles, and exclusions.

Statute of Limitations

Most first-party breach-of-contract and Insurance Code actions must be filed within two years (Texas Insurance Code §541.162) or up to four years for breach of contract (Tex. Civ. Prac. & Rem. Code §16.004). Always verify the limitations period applicable to your claim, because some policies shorten these deadlines contractually.

Licensing Requirements for Texas Attorneys and Public Adjusters

• Attorneys: Must be licensed by the State Bar of Texas and maintain active, good-standing status. You can verify a lawyer’s status on the State Bar website.

• Public Adjusters: Must hold a Texas Department of Insurance (TDI) license under Texas Insurance Code Chapter 4102. Unlicensed adjusting is illegal.

Common Reasons Property Insurance Companies Deny Claims in Texas

• Wear and Tear Exclusion: Insurers often argue that roof leaks or foundation cracks are due to age or maintenance issues rather than a covered peril like hail or wind.

• Late Notice of Loss: Most policies require prompt notice. Under Texas case law (e.g., Hamilton Properties v. American Insurance Co., 643 F.App'x 437 (5th Cir. 2016)), delayed reporting can prejudice the insurer and justify denial. However, prejudice must generally be proven by the insurer.

• Cosmetic Damage Limitation: Some Texas policies exclude minor superficial hail damage unless functional impairment exists. Always review endorsements.

• Concurrent Causation: If both covered and non-covered causes contribute to the loss, the insurer may deny unless the policyholder segregates covered damages (Texas Supreme Court, Jury Charge in Wallis v. United Services Auto. Ass’n, 2 S.W.3d 300 (Tex. 1998)).

• Failure to Mitigate: Policies require reasonable steps—like tarping a damaged roof—to prevent additional losses.

Many of these reasons can be rebutted with timely evidence, expert reports, and knowledge of Texas law favoring policyholders when policy language is ambiguous (Texas Supreme Court, Nautilus Ins. Co. v. Country Oaks Apartments, 566 S.W.3d 873 (Tex. 2019)).

Texas Legal Protections & Regulations

Prompt Payment Deadlines and Penalties

If an insurer violates the Prompt Payment of Claims Act, it may owe:

• 18% annual statutory interest on the amount due (Texas Insurance Code §542.060).

• Reasonable attorney’s fees.

TDI Consumer Bill of Rights for Homeowners Insurance

Distributed with every Texas homeowners policy, this document outlines your entitlement to a fair claims process, non-discriminatory underwriting, and the right to an itemized claim decision. Review it after any denial.

Remedies Available

• Breach of Contract: Recover the benefits owed plus prejudgment interest.

• Insurance Code Violations: Additional damages up to three times the amount of the claim for ‘knowing’ violations (Texas Insurance Code §541.152).

• Common-law Bad Faith: Extra-contractual damages for conduct that is extreme or with reckless disregard, per Arnold v. Nat’l County Mut. Fire Ins. Co., 725 S.W.2d 165 (Tex. 1987).

Steps to Take After a Property Insurance Claim Denial in Texas

1. Review the Denial Letter Thoroughly

Texas Insurance Code §542.056 requires insurers to state specific reasons for denial. Compare those reasons with your policy language.

2. Obtain a Certified Copy of Your Policy

Under §542.055, send a written request for a full certified policy, including endorsements. Retain proof of delivery.

3. Gather and Preserve Evidence

• Photographs and videos of damage immediately after the event.

• Receipts for temporary repairs or mitigation costs.

• Weather reports confirming hail size or wind speeds on the loss date.

4. Seek an Independent Inspection

Consider hiring a qualified, licensed public adjuster or engineer. Independent reports often rebut insurer findings.

5. File a Written Appeal or Re-inspection Request

Many Texas insurers allow a secondary inspection or internal appeal. Submit supporting evidence and cite the Texas Insurance Code rights discussed above.

6. Complain to the Texas Department of Insurance

How to File:

• Complete the online complaint form on TDI’s website or mail the paper form.

• Attach the denial letter, policy declarations, estimates, and correspondence.

• TDI assigns a file number and contacts the insurer for a response, generally within 15 business days (28 TAC §1.604).

TDI cannot order payment but can pressure insurers to follow Texas law. Complaints also create a record helpful in litigation.

When to Seek Legal Help in Texas

Indicators You Need a Texas Attorney

• Denial based on legal or technical grounds you dispute.

• Offer substantially below repair estimates.

• Evidence of insurer delay beyond statutory deadlines.

• Multiple experts hired by insurer with conflicting opinions.

Texas attorneys typically handle property insurance cases on a contingency fee. Look for lawyers experienced in Chapters 541 and 542 litigation and licensed in the Northern District of Texas if federal court becomes necessary.

Potential Lawsuit Venues

Most DeSoto disputes are filed in Dallas County District Court. If the insurer is an out-of-state corporation and residency is diverse, the case may be removed to the U.S. District Court for the Northern District of Texas, Dallas Division.

Local Resources & Next Steps for DeSoto Homeowners

• City of DeSoto Building Inspections: Obtain post-storm inspection reports to support your claim.

• Dallas County Appraisal District (DCAD): Property records help establish pre-loss condition and value.

• National Weather Service – Fort Worth Office: Archived storm data verifies hail size and wind speeds on specific dates.

Stay vigilant for contractors who solicit door-to-door after storms. Texas Business & Commerce Code §27.01 regulates residential roof contracts and requires a written agreement.

Authoritative References & Further Reading

Texas Department of Insurance – Homeowners Claims Help Texas Insurance Code Chapter 541 – Unfair Practices Texas Insurance Code Chapter 542 – Prompt Payment TDI Consumer Bill of Rights for Homeowners Insurance National Weather Service – Fort Worth Forecast Office

Legal Disclaimer

This article is for informational purposes only and does not constitute legal advice. Consult a licensed Texas attorney regarding your specific circumstances.

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