Texas Insurance Claim Laws
The statutes that govern your Texas property insurance claim — prompt-payment deadlines, 18% penalty interest, the 10% public adjuster fee cap, and what counts as bad faith.
By Dependable Claims Specialists Public Adjusters · TDI Firm License #3134924
Quick Answer
Texas law gives policyholders real leverage. The Prompt Payment of Claims Act (Ch. 542) forces insurers to acknowledge, decide, and pay claims on a deadline — or owe 18% annual interest plus attorney’s fees. Public adjuster fees are capped at 10% (Ch. 4102). Weather claims follow Chapter 542A, and bad-faith remedies live in Chapter 541.
The Texas Prompt-Pay Deadline Clock
Once you file, the insurer is on a statutory clock under Chapter 542. Miss the deadlines and the penalty interest starts adding up.
Acknowledge the claim
The insurer must acknowledge receipt of the claim, begin its investigation, and request any items it needs — generally within 15 days (Tex. Ins. Code §542.055).
Accept or reject
After receiving all items it reasonably requested, the insurer must notify you in writing whether the claim is accepted or rejected (§542.056).
Pay the claim
Once the insurer notifies you that the claim is accepted, it must pay promptly — generally within 5 business days (§542.057).
Violations of these deadlines on a non-weather claim trigger 18% annual interest plus reasonable attorney’s fees under §542.060. Estimate a public adjuster’s capped fee with our fee calculator.
The Statutes That Govern Your Texas Claim
Prompt Payment of Claims Act — Chapter 542
Tex. Ins. Code §§542.055–.060
Texas sets firm deadlines for insurers to acknowledge, decide, and pay claims. If the insurer misses them, it owes the claim amount plus 18% annual interest and reasonable attorney’s fees (§542.060, non-weather claims). This is one of the most powerful policyholder protections in Texas.
Public Insurance Adjusters — Chapter 4102
Tex. Ins. Code §4102.104
A public adjuster’s total commission may not exceed 10% of the insurance settlement on the claim. Contracts must be in writing on a TDI-approved form, and you have a three-business-day right to cancel. No percentage commission is allowed if the insurer pays policy limits within 72 hours of the loss report.
Weather Claims & Pre-Suit Notice — Chapter 542A
Tex. Ins. Code Ch. 542A
Claims from forces of nature (hail, wind, named storms, hurricanes) fall under Chapter 542A, which requires a written pre-suit notice before a lawsuit and sets the penalty-interest rate by a statutory formula rather than the flat 18%. Pre-suit notices and litigation are attorney work, not public adjusting.
Unfair Settlement Practices — Chapter 541
Tex. Ins. Code Ch. 541
Chapter 541 creates a statutory cause of action when an insurer engages in unfair or deceptive settlement practices — unreasonable denial, failure to investigate, or misrepresenting policy provisions. These bad-faith remedies are pursued by a licensed attorney.
TWIA — Texas Windstorm Insurance Association
Tex. Ins. Code Ch. 2210
TWIA is the statutory wind and hail insurer of last resort for the 14 designated coastal counties and parts of Harris County. TWIA claims follow their own dispute and appraisal procedures, which differ from standard carrier claims.
TFPA — Texas FAIR Plan Association
Tex. Ins. Code Ch. 2211
The Texas FAIR Plan is the statutory residential insurer of last resort, available statewide to policyholders who cannot obtain coverage in the voluntary market.
Frequently Asked Questions
How long does an insurance company have to pay a claim in Texas?
What is the 18% penalty interest in Texas?
What is the public adjuster fee cap in Texas?
What is the deadline to file or sue on a property insurance claim in Texas?
Does a public adjuster handle bad-faith claims in Texas?
Statutes That Touch DCS Work
Texas (home base) and Florida statutes that govern public adjusting, appraisal, prompt-pay, and policyholder rights. DCS reviews and applies these statutes in the ordinary course of adjusting. Legal questions belong to a licensed attorney in your state.
Texas (Home Base)
DCS Firm License #3134924
- TX Ins. Code Ch. 4102. Public adjusters. Caps PA fees at 10% of recovery for public adjusting work. Requires written contract on TDI-approved form. Three-business-day cancellation right.
- TX Ins. Code Ch. 542. Prompt Payment of Claims Act. Acknowledge / decide / pay deadlines, 18% statutory interest plus attorney fees on violations.
- TX Ins. Code Ch. 542A. Pre-suit notice for weather-related property claims. Attorney work; outside the public adjusting role.
- TX Ins. Code Ch. 2210 (TWIA). Texas Windstorm Insurance Association. Statutory wind/hail insurer of last resort for 14 designated coastal counties and parts of Harris County.
- TX Ins. Code Ch. 2211 (TFPA). Texas FAIR Plan Association. Statutory residential insurer of last resort, statewide availability for policyholders unable to obtain voluntary-market coverage.
- TX Ins. Code §541. Unfair Settlement Practices. Statutory cause of action; attorney work.
- License authority: Texas Department of Insurance (TDI).
- Statute of limitations: Generally 2 years for property claims (varies by policy and loss type).
Florida
DCS Firm License #W820363
- Fla. Stat. §626.854. Public adjusters. Caps PA fees at 20% of recovery for most claims, reduced to 10% during the first year following a state-declared emergency.
- Fla. Stat. §626.9744. Matching uniform appearance. Carriers must match the rest of the line, side, room, or other continuous area when repairing or replacing damaged property.
- Fla. Stat. §627.70131. Prompt-pay statute. Following 2022 reforms, the deadline to pay or deny most residential property claims was reduced to 60 days.
- Fla. Stat. §627.70132. Supplemental and reopened claims. Three years from date of loss; longer for hurricane claims.
- Fla. Stat. §627.7015. Mandatory mediation precondition for some residential property disputes.
- Fla. Stat. §624.155. Civil Remedy Notice (CRN). Attorney work; outside the public adjusting role.
- 2022 reforms (SB 2-D, SB 2-A). Eliminated one-way attorney fees for property claims; restricted Assignment of Benefits.
- License authority: Florida Department of Financial Services (DFS).
Important. This summary is general educational information, not legal advice. The application of any statute to a specific claim, the determination of whether a denial supports a statutory cause of action, and any pre-suit or litigation strategy are legal questions for a licensed attorney in your state. DCS Public Insurance Adjusters read and apply policy language in the ordinary course of adjusting (coverage parts, exclusions, endorsements, scope), but do not provide legal advice or pursue statutory remedies.
Educational Information - Not Legal Advice
The information on this page is for general educational purposes only. Dependable Claims Specialists is a licensed public adjusting firm - not a law firm. Public adjusters help policyholders inspect, document, evaluate, and negotiate property insurance claims, which includes reading and applying your policy in the ordinary course of adjusting (coverage parts, exclusions, endorsements, scope). We do not practice law and we do not provide legal advice. For legal opinions, demand letters, Chapter 542A pre-suit notices, statutory remedies under the Insurance Code, or litigation, consult a licensed attorney in your state. Texas public adjusters operate under TX Ins. Code Chapter 4102; Florida public adjusters operate under FL Statute §626.854.
Know Your Rights. Then Use Them.
A licensed Texas public adjuster will review your policy and your loss for free — and apply these statutes to your claim. No recovery, no fee.
