Danville, CA asked in Insurance Bad Faith for Texas

Q: In Texas, is there a statute of limitations for a homeowner's claim to be accepted or denied?

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1 Lawyer Answer
John Michael Frick
John Michael Frick
  • Frisco, TX
  • Licensed in Texas

A: 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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