Q: In Texas, is there a statute of limitations for a homeowner's claim to be accepted or denied?
The statute of limitations is the period of time within which the homeowner must file a lawsuit against the insurance company.
Separate and apart from the statute of limitations, the Prompt Payment Act requires an insurance company to respond within a specific time to a claim made by the homeowner. It does contain provisions allowing the insurance company to ask for additional information with respect to a claim, so it’s not as simple as saying x days.
If an insurance company violates the Act and the claim is in fact covered under the policy, the Act imposes statutory interest at the rate of 18% per annum on the amount that must be paid by the insurance company under its policy. The Act does not create coverage where there is none under the policy as a penalty for the company not processing the claim quickly enough.
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