Texas Property Insurance Law Guide – Garland Homeowners

Estimated reading time: 12 min read

Introduction: Why Garland Homeowners Must Know Their Rights

From sudden hailstorms pounding rooftops to hidden mold damage triggered by burst pipes, property losses are a fact of life in Garland, Texas. When disaster strikes, residents rely on their homeowner’s insurance to repair the damage and restore peace of mind. Unfortunately, many policyholders encounter frustrating delays, lowball settlements, or outright denials. Understanding Texas property insurance law in Garland empowers you to push back against unfair claim practices and recover every dollar you are owed.

This guide breaks down the key statutes in the Texas Insurance Code (TIC), important case law from Texas courts, and step-by-step strategies to protect your claim. Whether you are facing a dispute over mold remediation costs, storm-related roof replacement, or a bad-faith refusal to pay, the information below will help level the playing field against insurers.

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Common Disputes Affecting Garland Homeowners

• Mold infestation after water leaks

• Wind and hail roof damage

• Plumbing burst and ensuing water damage

• Fire and smoke losses

• Disagreements over repair scope and material quality

Understanding Texas Property Insurance Law

1. The Texas Insurance Code

The backbone of consumer protections is found in Chapters 541 (Unfair Methods of Competition & Unfair or Deceptive Acts or Practices) and 542 (Prompt Payment of Claims) of the Texas Insurance Code. Together, they prohibit insurers from misrepresenting policy terms and require prompt claim handling.

• Section 541.060: Bars insurers from unfair settlement practices, including failing to conduct a reasonable investigation or denying coverage without a reasonable basis.

• Section 542.056: Insurers must accept or reject a claim within 15 business days (extended to 30 days in certain catastrophes).

• Section 542.058: Payment must be made within 60 days after receiving all items necessary to secure final proof of loss.

• Penalty: Failure triggers statutory interest of 18% per annum plus reasonable attorney fees.

2. Prompt Payment Statute of Limitations

Texas imposes a two-year statute of limitations for Chapter 541 actions and a separate two-year (or up to five-year) window for filing Chapter 542 suits, measured from the date the unfair act occurred or when it was discovered. Act quickly to preserve your rights.

3. Bad Faith Under Common Law

Texas courts recognize a common-law duty of good faith and fair dealing. In Arnold v. National County Mutual, 725 S.W.2d 165 (Tex. 1987), the Supreme Court of Texas held that an insurer acts in bad faith when it denies a claim with no reasonable basis or delays payment after liability is reasonably clear.

4. The Appraisal Clause

Most Texas homeowner policies feature an appraisal provision allowing either party to demand a neutral evaluation of the loss amount. In State Farm Lloyds v. Johnson, 290 S.W.3d 886 (Tex. 2009), the court confirmed that appraisal decides amount of loss—not coverage—binding both parties unless fraud, mistake, or lack of good faith is shown.

Common Property Insurance Disputes in Texas

Below are the most frequent reasons Garland policyholders end up in disputes:

1. Wind & Hail Roof Claims

Springtime storms sweep through Dallas County, leaving shingles displaced and sub-surface decking compromised. Insurers often pay for patch repairs only, overlooking Texas’ matching statute (TIC § 542A.002) that may require replacing an entire roof slope to achieve uniform appearance.

2. Water & Mold Damage

Mold thrives in Garland’s humid climate—especially in summer. Policies typically limit mold coverage to $5,000 or $10,000 unless you purchase an endorsement. Insurers sometimes deny mold remediation by labeling it “maintenance” rather than a covered peril. Chapter 541 protects homeowners from such mischaracterizations.

3. Fire & Smoke Losses

Garland’s older housing stock increases fire risk due to aging wiring. While structure repairs are usually covered, carriers frequently dispute costs for smoke cleaning, air scrubbing, and personal property deodorization.

4. Hurricane & Tropical Storms

Although Garland sits inland, Gulf cyclones can still push torrential rain and tornado-spawned winds into North Texas. Disagreements escalate over wind versus flood causation—especially where concurrent causation doctrines apply.

5. Scope & Pricing Disagreements

Even when coverage is conceded, insurers may lowball labor or material pricing under Xactimate estimates. Texas law allows homeowners to present independent contractor bids to challenge undervaluation.

Texas Legal Protections & Regulations

1. Statutory Deadlines

• Notice of Claim: Provide prompt written notice, usually within the policy’s “as soon as practicable” clause—ideally within days of discovering damage.

• Proof of Loss: Most policies require a sworn statement within 91 days of the insurer’s request. Missed deadlines can compromise coverage.

• Appraisal Demand: No specific statutory deadline, but courts enforce “reasonable” timing—often within months of disagreement.

• Lawsuit Filing: Four years from the breach for contract actions, two years (plus 180 days) for Chapter 541, and two years for Chapter 542 prompt-payment violations.

2. Appraisal Process in Detail

• Either side sends written demand per policy language.

• Each party selects a competent appraiser within 20 days.

• The appraisers choose an umpire; failing agreement, a court in Dallas County appoints one.

• Two out of three sign a written award; that number is binding absent fraud.

• Insurer must pay the appraisal award (plus interest if prompt-payment deadlines were breached).

3. Bad Faith Penalties

Beyond the statutory 18% interest, courts may award:

• Actual damages, including consequential losses like additional living expenses.

• Exemplary (punitive) damages up to twice the amount of economic damages if the carrier knowingly acted unfairly (§541.152).

• Attorney fees and court costs.

4. Recent Court Rulings Impacting Garland Homeowners

• Menchaca v. USAA Texas Lloyds, 545 S.W.3d 479 (Tex. 2018): Clarified that an insured can recover policy benefits as “actual damages” for statutory bad-faith violations even without separate breach of contract damages.

• Barbara Technologies Corp. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019): Held payment of an appraisal award doesn’t bar a prompt-payment claim.

• Ortiz v. State Farm Lloyds, 589 S.W.3d 127 (Tex. 2019): Reinforced that appraisal doesn’t preclude bad-faith claims based on insurer conduct before appraisal.

Steps to Take After a Property Insurance Dispute

1. Document Everything

• Take timestamped photographs and videos of all damage, including moisture meters or hygrometer readings for mold.

• Save every email, text, and voicemail with the adjuster.

• Keep copies of invoices, material receipts, and remediation reports.

2. Mitigate Further Damage

Texas policies require reasonable steps to prevent additional loss, such as tarping roofs or hiring a water-remediation company. Failure may give insurers grounds to reduce payment.

3. Obtain Independent Estimates

Garland contractors familiar with Dallas County building codes can rebut underpriced insurer scopes. For mold, secure an Industrial Hygienist’s protocol and post-remediation verification.

4. File a Written Complaint with TDI

If negotiations stall, submit an online complaint through the Texas Department of Insurance (TDI). TDI often nudges carriers to comply with prompt-payment rules.

5. Consider Appraisal

If the only dispute is dollar value, demand appraisal in writing. This low-cost alternative frequently unlocks stalled payments—but note that it may waive some rights to litigate amount later.

6. Preserve Evidence for Litigation

If bad faith is suspected, gather documents early. Expert reports, moisture mapping, and drone roof imagery can be pivotal at trial.

When to Seek Legal Help in Texas

While minor clerical disputes can sometimes be resolved directly with the insurer, you should consult a Garland insurance attorney immediately when:

• Your claim is denied for ambiguous reasons.

• Payment is unreasonably delayed past statutory deadlines.

• The adjuster drastically undervalues mold remediation costs.

• Evidence shows selective use of policy exclusions.

• You receive a Reservation of Rights letter or Examination Under Oath (EUO) request.

How Louis Law Group Can Help

Louis Law Group’s attorneys are licensed in Texas and focus exclusively on policyholder representation. We:

• Conduct free policy reviews and loss assessments.

• Send statutory demand letters invoking Chapters 541 & 542 rights.

• Coordinate reputable estimators, engineers, and mold experts.

• Negotiate settlements or file suit in Dallas County or federal court.

• No fee unless we recover—our contingency aligns with your success.

Local Resources & Next Steps

1. Regulatory Agencies & Courts

Texas Department of Insurance (TDI) Dallas County Courts – Handles most state-level property disputes for Garland residents. Texas Judicial Branch – Access statewide rules and e-filing portals. State Bar of Texas – Verify attorney licenses and disciplinary history.

2. Legal Aid

Homeowners of limited means can contact Legal Aid of NorthWest Texas for potential assistance.

3. Building Codes & Permits

Consult Garland Building Inspection Department for contractor permit requirements—critical when insurers challenge code upgrade costs.

Take Action Today

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 comprehensive policy review. We fight for Garland homeowners and never charge unless we recover money for you. Don’t let the insurer dictate your future—put an experienced advocate on your side now.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified Texas attorney regarding your specific circumstances. Prior results do not guarantee a similar outcome.