How long does Texas law give my insurance company to pay my claim?

Under Texas Insurance Code Section 542, your insurer must acknowledge your claim within 15 business days of receiving it. They must accept or deny the claim within 15 additional business days after receiving all requested information. Once they accept the claim, they must pay within 5 business days. If they fail these deadlines without good cause, they owe you interest at 18% per year plus attorney fees.

What should I do if my insurance company denies my water damage or flood claim?

First, get the denial in writing and ask for the specific policy language they relied on. Then request your complete claim file. Consider hiring a public adjuster to re-inspect the damage. If the dispute involves interpretation of the policy, consider consulting a Texas bad faith insurance attorney. You can also file a complaint with the Texas Department of Insurance (TDI) at tdi.texas.gov. TDI investigates all complaints and can apply market conduct pressure.

What is a public adjuster and when should I hire one in Houston?

A public adjuster is a licensed insurance professional who works for you (not the insurance company) to document and negotiate your claim. In Texas, public adjusters are licensed by TDI and typically charge 10% to 15% of the claim settlement. They're most valuable when your initial settlement offer seems too low, when the insurer is disputing cause of damage, or when you have a complex multi-system claim like Harvey damage. Don't hire one immediately after loss, document first.

Does homeowners insurance cover mold after a water damage claim?

Texas homeowners policies typically cover mold remediation when the mold resulted directly from a covered water loss, like a burst pipe. However, many policies have a mold sublimit of $5,000 to $10,000, which is often far less than actual remediation costs in Houston. If the insurer's delay in handling your claim caused additional mold growth, you may have a bad faith argument for the additional costs under Texas Insurance Code Chapter 541.

What is 'Actual Cash Value' vs 'Replacement Cost' coverage?

Actual Cash Value (ACV) means the insurer pays for damage minus depreciation. A 10-year-old roof damaged by a hurricane might only get $4,000 under ACV because it was already partially depreciated. Replacement Cost Value (RCV) means the insurer pays what it actually costs to replace the damaged property with new materials. RCV policies typically cost 10 to 15% more but can result in dramatically higher payouts. In Houston, given the hurricane risk, RCV coverage is strongly worth the premium difference.

How do I document my Houston property for an insurance claim?

The best practice is to document BEFORE any damage occurs. Create a home inventory video walking through every room, opening every cabinet, recording model numbers and serial numbers of appliances. Store it in cloud storage. After damage, photograph everything from multiple angles before touching anything. Document the water line mark on walls with a tape measure. Keep all receipts for emergency purchases. This documentation dramatically improves claim outcomes.

What is the Texas Department of Insurance and how can it help me?

The Texas Department of Insurance (TDI) regulates all insurance companies operating in Texas. If your insurer is acting in bad faith, unreasonably delaying your claim, or you believe you were underpaid, file a complaint at tdi.texas.gov. TDI can investigate, require the insurer to respond, and in egregious cases, take market conduct action. TDI also has a toll-free consumer helpline at 1-800-252-3439.

Insurance claim documents for home restoration

Insurance Claims for Restoration in Houston: The Complete Guide

Updated: April 2026 · Marcus Chen

Quick Answer: In Texas, insurers must acknowledge your claim within 15 days and pay within 5 days of acceptance. Hurricane deductibles are percentage-based (1-5% of home value), not a flat amount. Standard homeowners does NOT cover external flooding; you need NFIP separately. If denied, TDI can investigate and you have strong appeal rights.

Written by Marcus Chen

Software engineer in The Heights, Houston. Built HoustonHomeRestore after losing $47,000 to water damage and hidden mold following Hurricane Harvey.

The insurance claim after Hurricane Harvey taught me more about homeowners insurance than 15 years of paying premiums. I discovered I had a 2% hurricane deductible I didn't know existed: $7,800 out of my pocket before insurance paid a cent. I discovered my mold sublimit was $5,000 when remediation cost $18,000. This was the most expensive mistake of my life, and it was entirely preventable.

This guide covers what you need to know about restoration insurance claims in Texas before damage occurs, during the claims process, and what to do when something goes wrong.

Immediate Steps After Damage

Document Before You Clean

Photograph and video all visible damage from multiple angles before moving or discarding anything. Record the water line mark on walls with a tape measure. Save samples of damaged materials in plastic bags. This documentation determines your claim payment.

File the Claim Fast

Call your insurer within 24 hours of damage. Under the Texas Insurance Code, insurer response deadlines start from claim receipt. Get your claim number and the assigned adjuster's name. Confirm whether damage triggers your hurricane deductible or standard.

Take Steps to Prevent Further Damage

Your policy requires you to take reasonable steps to prevent further damage. This means tarping damaged roofs, extracting standing water, and drying what's safe to dry. Save receipts for all spending. Emergency materials are typically reimbursable.

Texas Insurance Code: Your Rights as a Homeowner

Texas has some of the strongest consumer insurance protections in the country. Knowing these laws fundamentally changes the dynamic when dealing with your insurer.

Section 542: Prompt Payment

Your insurer must: (1) acknowledge your claim within 15 business days of receipt; (2) accept or deny within 15 business days after receiving all information; (3) pay within 5 business days of acceptance. Violation: 18% annual interest plus attorney fees on the unpaid amount.

Chapter 541: Insurance Bad Faith

Texas prohibits unfair insurance practices including: denying claims without reasonable investigation, failing to offer prompt payment when liability is reasonably clear, and compelling the insured to litigate through an unreasonably low offer. Damages can include treble damages for the actual economic harm.

Article 4102: Public Adjuster Regulation

Texas licenses public adjusters through TDI. They may charge up to 10% of claim payments on governor-declared disaster claims and up to 15% on other claims. The contract must be in writing. You have the right to cancel within 72 hours.

Insurance Code 862.053: Cancellation Protections

In Texas, an insurer cannot cancel your policy simply because you filed a claim. They have strict restrictions on when they can non-renew policies, and must give you 60 days notice of non-renewal.

Texas Hurricane Deductibles: What Nobody Tells You

The hurricane deductible is the most common painful surprise Houston homeowners face after a major storm. Here's how it works in Texas.

How to Calculate Your Hurricane Deductible

1.Find your home's insured value on your declarations page (not the purchase price, but the replacement/reconstruction cost).

2.Find the hurricane deductible percentage (look for 'hurricane deductible' or 'windstorm deductible' in your policy).

3.Multiply: Insured value × Percentage = Your deductible.

4.Example: Home insured for $350,000 × 2% = $7,000 deductible before insurance pays anything.

The hurricane deductible triggers when the storm was a 'named hurricane' at the time of causing damage. For Harvey, the storm was downgraded to a tropical storm before making landfall in the Houston area, leading to disputes about whether the hurricane or standard deductible applied. Different insurers handled this differently. Read the exact definition of 'hurricane' in your policy.

Homeowners vs. NFIP Flood Insurance: The Crucial Difference

Aspect	Homeowners Insurance	NFIP Flood Insurance
Covers	Accidental internal water (pipes, appliances, roof)	Flooding from external sources (bayou, street, storm surge)
Does NOT cover	External flooding of any kind	Temporary living expenses, mold as separate damage, vehicles
Building limit	Varies (based on reconstruction cost)	Maximum $250,000 for building
Contents limit	Typically 50-70% of building value	Maximum $100,000 for contents
Waiting period	Typically none	30 days (exception for loan/property closing)
Living expenses	Yes, 'Additional Living Expense' (ALE), typically 20% of limit	No

How to File a Restoration Claim Step by Step in Texas

Report the Claim

Call your insurer's claims line or use the mobile app within 24 hours. Have your policy number, property address, and a basic damage description ready. If it's flooding, also call your NFIP insurer (may be the same company, may be different).

Document Exhaustively

Photograph and video every damaged area before touching anything. Record the water line on walls with a tape measure. Create a list of all damaged items with models and estimated values. If you have purchase receipts, warranty records, or pre-damage photos, gather them. The more documentation, the better the outcome.

Meet with the Adjuster

The insurer's adjuster will inspect your property. Be there in person. Point out every damage you've identified, including hidden damage (open cabinet doors, point out the crawlspace if relevant). If you don't mention it, the adjuster may not include it. Take notes on what the adjuster says.

Review the Xactimate Estimate

Most Texas insurers use Xactimate to calculate repair costs. You'll receive a line-by-line breakdown. Compare prices against independent estimates from local restorers. If Xactimate prices are significantly below actual Houston market estimates, request a claim supplement.

Negotiate or Dispute if Necessary

If the offer seems low, request written explanation of each disputed item. Submit third-party estimates as evidence. Consider hiring a public adjuster if the gap is significant. If the claim is wrongfully denied, TDI and bad faith insurance attorneys are your next resources.

Common Claim Denials and How to Fight Them

Denial: 'Damage was caused by flooding, not covered'

Counter: If part of the damage was from internal water (pipe, roof), that portion IS covered. Document the water entry point. A pipe that burst during a storm is still pipe damage, not flooding. Get an independent second inspection.

Denial: 'Damage was caused by deferred maintenance'

Counter: Texas Insurance Code requires the insurer to prove deferred maintenance was the proximate cause of damage. If a minor leak existed but the massive damage was caused by a storm event, the storm is the efficient cause of loss. This can often be successfully disputed.

Denial: 'No covered damage exceeds the deductible'

Counter: Get multiple estimates from licensed restorers. If there's a significant gap between the insurer's estimate and market estimates, that gap is the basis for appeal. Xactimate prices can be based on national market data that underestimates Houston pricing.

Denial: 'Mold is a pre-existing condition'

Counter: If mold grew as a result of a covered water event, it's not pre-existing. Get a report from a TDLR-licensed mold assessor documenting the causal connection between the water event and mold growth.

Insurance Claim Costs and Fees in Houston

Item	Low	High	Notes
Hurricane deductible (1% of $300k)	$3,000	$3,000	Varies by insured value
Hurricane deductible (2% of $400k)	$8,000	$8,000	Most common in Houston
Public adjuster fees	10%	15%	% of settlement, TDI regulated
Average water damage claim Houston	$8,000	$25,000	Excluding flood
Average post-Harvey claim per home	$35,000	$75,000	Harris County adjuster data
Max NFIP claim (building)	$250,000	$250,000	Federal program limit
Bad faith attorney fees	30%	40%	% of additional recovery

Texas Department of Insurance (TDI): How to File a Complaint

If your insurer is acting in bad faith, unreasonably delaying your claim, or you believe you were underpaid, TDI is your first regulatory resource.

How to File a TDI Complaint

1.Go to tdi.texas.gov and select 'File a Complaint'
2.Provide your insurer's name and your policy number
3.Describe the problem and attach your documentation
4.TDI will forward the complaint to the insurer and require a response
5.TDI will notify you of the investigation outcome

When TDI Can Help

•Excessive delays beyond Texas Insurance Code deadlines
•Refusal to explain claim denial in writing
•Unreasonably low offers without justification
•Intimidation or pressure to accept a quick settlement
•Failure to respond to communications for more than 15 business days

TDI also has a consumer helpline: 1-800-252-3439 (Monday through Friday, 8am to 5pm Central)

FAQ: Insurance Claims for Restoration in Houston

A hurricane deductible is a special deductible that applies when a named storm causes your damage. Unlike a flat-dollar deductible (say $2,000), Texas hurricane deductibles are calculated as a percentage of your home's insured value, typically 1% to 5%. On a $400,000 home, a 2% hurricane deductible means you pay the first $8,000 out of pocket before insurance kicks in. This catches many Houston homeowners off guard. Check your declarations page for the percentage.