After a property loss, the only thing worse than dealing with the damage is waiting months for your insurance company to write you a check. Fortunately, you have the right to a timely settlement in Texas. The Texas Prompt Payment of Claims Act (TPPCA) has strict deadlines that your insurer must follow to ensure you receive your payment on time.
The 15-15-5 timeline
Once you file a claim, your insurance provider has 15 business days to acknowledge it, begin an investigation and request all necessary documents from you. After receiving all requested items, the insurer typically has 15 business days to accept or reject your claim in writing.
However, this can be extended to 45 calendar days if they provide a valid reason. Upon approval of the claim, your provider must send your payment within five business days. It is important to note that this deadline gets an automatic extension during declared major weather catastrophes or natural disasters.
What happens if they miss a deadline?
If your insurer violates the required deadlines, Texas law allows you to recover the full amount of the claim plus an additional penalty (currently 18% annual interest on the delayed amount).
Additionally, the TPPCA requires the insurance provider to pay your reasonable attorney’s fees if you have to sue to get the payment owed to you.
Things to remember as a policyholder
It is best to communicate with your adjuster by email or mail to create a clear paper trail. Having written proof helps you document the timelines and details of these exchanges in case of conflict.
Additionally, sending the requested documents, photos, estimates or other information prevents delays in your claim. The insurer’s timeline may pause while they are waiting on you so responding promptly helps keep the process moving.
Protecting your rights in the claim process
Since you pay your premiums on time, it is only fair for your insurance company to pay your claim on time. A lawyer can help you hold your provider accountable while advocating for the recovery support you deserve.