How Long Does a Texas Insurance Company Have to Pay Your Claim?
Waiting on an insurer can feel endless, especially after storm or water damage. Texas has a prompt payment law that sets deadlines for insurers handling first-party property claims, and delays can carry consequences.
The general timeline under Chapter 542
Subchapter B of Chapter 542 of the Texas Insurance Code sets the framework for many first-party claims. In general terms:
Acknowledge and begin investigating. The insurer must acknowledge the claim, begin its investigation, and request needed information within 15 days after receiving notice of the claim.
Accept or reject. After receiving all items it requested, the insurer generally must accept or reject the claim within 15 business days.
Pay. If the claim is accepted, payment is generally due within 5 business days after notice of acceptance.
Extensions. If the insurer needs more time and tells you why, the law allows an extension of the decision deadline of up to 45 days.
Some situations, such as certain catastrophe conditions, can change these deadlines, and different rules apply to some types of insurers. Your actual timeline depends on your policy and the facts.
What happens when an insurer is late
If an insurer violates the prompt payment deadlines and is liable for the claim, the law can allow interest on the amount owed and reasonable attorney's fees. The calculation depends on the type of claim. For certain weather-related property claims governed by Chapter 542A, different interest rules and pre-suit notice requirements apply.
Steps you can take if your claim is stuck
Keep a log of every date you reported the claim, sent documents, and spoke with the insurer.
Respond to information requests in writing and keep proof.
Ask for status and written explanations of any delay.
Request the claim file and policy if you do not have them.
Talk to an attorney before the insurer's silence turns into a missed deadline for you.
Davila Cobos Law Firm, PLLC helps property owners in San Antonio and Laredo with insurance claim disputes, including delayed and underpaid claims.
This article provides general information, not legal advice, and reading it does not create an attorney-client relationship. Statutory deadlines and remedies vary by claim type and facts.
