Texas storm and hail claims on a rental

Short answer. After a storm damages your rental, make sure everyone is safe, photograph the damage, stop more damage and keep every receipt. File the claim with the insurance company named on your policy, not with your agent. Texas law sets deadlines for the insurance company's answers. Coastal wind and hail policies from the Texas Windstorm Insurance Association (TWIA) have their own.

This page follows a claim from the first hour to the last payment, for a rental house or small rental building. Your policy and your insurance company decide what is covered; this is general information, not advice on your claim.

First: people, then photos, then stop more damage

1. People first. Check that your tenants are safe and have somewhere to stay if the home can't be lived in. Stay off a damaged roof, and keep clear of downed lines and standing water until it is safe.
2. Photos and video before anything moves. The Texas Department of Insurance (TDI) advises: "If possible, take pictures or videos of the damage before making any repairs" (TDI home insurance guide). Photograph the outside, every room with damage, and anything the tenant reports. Ask the tenant to send their own photos too, with the date.
3. Then stop more damage. A tarp on the roof, a boarded window, the water shut off. TDI's standard dwelling form (TDP-3, last revised 2002; many insurers use their own forms) makes this your duty: you must "protect the property from further damage," "make reasonable and necessary repairs to protect the property," and "keep an accurate record of repair expenses" (TDP-3, Conditions). Other forms have similar duties.
4. Temporary, not permanent. TDI: "Don't make permanent repairs. The insurance company might deny your claim if you make permanent repairs before it sees the damage" (TDI).
5. Keep every receipt, for the tarp, the plywood, the water extraction.

Report the claim to your insurance company

Who you file with. The insurance company named on your declarations page, through the claims contact on your policy, its website or its app. AIV Insurance is an insurance agency, not the insurance company, so telling us is not reporting the claim. We can help you find the right contact.

You may need more than one claim. TDI notes that "Depending on the kind of damage your home has and where you live, you may need to file more than one insurance claim" (TDI): wind and hail with TWIA if you have a TWIA policy, rising water with your flood insurer, and the rest with your landlord policy. A landlord policy generally does not cover flood; see Water damage and flood on a Texas rental.

When. As soon as you can. The TDP-3 requires "prompt notice," and TDI says "Most companies have deadlines for you to file a claim. Some policies have a one-year deadline unless you can show good cause for the delay" (TDI).

Have ready: the policy number, the date of the storm, what happened, your photos, and how the adjuster can reach the property (usually through your tenant or property manager). Write down the claim number and every call: the date, the name and what was said.

Check your deductible first, but don't wait long to report damage. TDI suggests finding out your deductible and getting repair estimates first, because "If the cost of repairs is about the same or less than your deductible, you may decide it's not worth filing a claim" (TDI). On many Texas policies the wind and hail deductible is a percentage of the dwelling limit (the amount the house itself is insured for); work out the dollar amount first (Texas wind and hail deductibles, explained).

A question is not a claim. For a house or duplex insured by a Texas-licensed company, a general question about your coverage, or about how to file a claim, is protected as an "inquiry": the insurer may not use it to turn you down, cancel or not renew. A call about specific damage that leads to an investigation or claim is not protected as an inquiry (Ins. Code §551.113). Why this matters: TDI says companies aren't supposed to report your questions to the claims-history (CLUE) report, and advises, "make sure you're clear about whether you're filing a claim or just asking a question about your policy" (TDI).

How long does an insurance company have to pay a claim in Texas?

Texas Insurance Code chapter 542 sets deadlines for Texas-licensed insurers and for eligible surplus-lines insurers (§542.052). TWIA has its own rules (next section).

Sources: §542.055–.057; §2210.573, §2210.5731, §2210.581.

• A rejection must give reasons. "If the insurer rejects the claim, the notice … must state the reasons for the rejection" (§542.056(c)).
• After a big storm, add 15 days. "In the event of a weather-related catastrophe or major natural disaster, as defined by the commissioner, the claim-handling deadlines … are extended for an additional 15 days" (§542.059(b)).
• Late payment has a cost for the insurer. An insurer that is liable for a claim and misses these deadlines owes interest on the claim, plus reasonable attorney's fees. In a lawsuit over a weather-related claim, chapter 542A applies: the interest is the Texas judgment rate plus five percentage points, not the 18% often quoted (18% is for other kinds of claims) (§542.060(a), (c)), and the fee award can be reduced or ruled out (§542A.007).

The clock for a decision starts when the insurer has "all items, statements, and forms" it asked for, so answer its requests quickly and keep copies of what you sent.

If you have a TWIA policy on the coast

TWIA writes wind and hail coverage in the designated coastal area only; a rental inland gets wind and hail from its own policy. If yours is a TWIA policy:

• Report within one year. "An insured must file a claim under an association policy not later than the first anniversary of the date on which the damage to property that is the basis of the claim occurs" (§2210.573(a)). The commissioner may extend that by up to 180 days for good cause (§2210.205(b)).
• Temporary repairs only, until you've spoken with TWIA. TWIA asks policyholders not to "start permanent repairs, replace, or dispose of any damaged items before first discussing it with a claims examiner" (TWIA, Claims process).
• Watch the appraisal deadline. If you dispute the amount, you have 60 days from the day you receive TWIA's notice accepting all or part of the claim to demand appraisal (§2210.574(b); TDI).
• Replacement cost has a deadline too. With replacement cost coverage, you have 545 days from the day you receive that notice to send proof of the cost and completion of the repairs (§2210.5741). TDI adds that this applies to policies that started or renewed after January 1, 2020 (TDI).

The adjuster's visit

The adjuster "works for the insurance company paying the claim" and estimates the payment (TDI, Working with an insurance adjuster). Some claims are handled from photos, without a visit.

• Be there, or send someone who knows the house. TDI: "Try to be there when the adjuster inspects the damage" (TDI), and "It's a good idea to have your contractor with you" (TDI).
• Arrange access with your tenant well ahead, as your lease provides.
• Get the adjuster's name and contact details, and ask when to expect the insurance company's decision.
• Ask for a copy of the estimate, and compare it line by line with your contractor's. If the adjuster missed something, tell the insurance company why, with documents. If you can't work it out, TDI says "You can ask the company to assign a different adjuster."

Your tenants, their belongings, and lost rent

• Their belongings. Your tenant's belongings are usually covered by their own renters insurance, not by your landlord policy. TDI tells renters: "Your landlord's insurance won't cover your personal items" (TDI). See Landlord vs renters insurance in Texas.
• If the home can't be lived in. Under Texas Property Code §92.054, if a casualty loss (sudden damage such as a fire or storm) makes the home totally unusable and the tenant didn't cause it, you or the tenant may end the lease; what that means for your rent and repairs is in Loss of rent coverage for Texas landlords.
• Lost rent. If your policy includes loss of rent (fair rental value), it may pay the rent you lose while covered damage is repaired.

Roof claims: how the roof is settled matters

Many Texas storm claims involve the roof, and three things on your policy decide what a roof claim pays:

• The wind and hail deductible, often a percentage of the dwelling limit rather than a flat amount.
• The roof settlement basis. Replacement cost, actual cash value (after depreciation), or an age schedule. TDI warns that "As roofs age, some companies will switch to actual cash value" (TDI, Insurance and your roof).
• Often two payments. With replacement cost coverage, many companies pay actual cash value first and the depreciation they held back later. Some companies pay the rest once repairs start, others once the work is finished (TDI describes both, on its roof page and in its home insurance guide), and the TDP-3 pays it once the repair is completed; ask your adjuster which. On an actual cash value policy, the depreciation is not paid later.

TDI also reminds owners: "your insurance company won't pay for a new roof just because it's old or worn out." The worked example, the repair time limits and the age schedules are in Roof ACV vs replacement cost in Texas; how age affects the policy itself, in How old can a roof be to insure in Texas?.

When the check names your lender

If a mortgage lender is named on the policy, the building part of the claim is usually paid to you both. The TDP-3 says the insurer "will pay for any covered loss of or damage to buildings or structures to the mortgagee shown on the declarations page as interests appear," that is, to the lender up to its interest in the house (TDP-3). TDI describes what usually happens: you endorse the check and send it to the mortgage company, which "will deposit the check and release money to you as the work is done" (TDI).

Texas law sets deadlines for the lender too. For a single-family house, a duplex, triplex or fourplex, or a condominium unit, a lender holding the proceeds until repairs are done must tell you each requirement for release within 10 days of receiving the payment, and within 10 days of your request must release the money or explain specifically why not; a lender that misses these owes interest on the money it holds (Ins. Code ch. 557). Ask the lender for its requirements in writing at the start: usually the contract, the estimate, and the contractor's details.

Contractors, public adjusters, and what you sign

After a storm, the first person at the door is often a contractor you didn't call. TDI's advice: use local companies, get more than one bid in writing, check references, and be wary of door-to-door offers (TDI, contracting scams).

• Your deductible is yours to pay. It is an offense for a contractor paid from insurance proceeds to pay, waive or rebate your deductible without the insurer's consent, and a contract of $1,000 or more that is expected to be paid from a claim must carry a printed notice saying so (Bus. and Com. Code §27.02). TDI: "Your insurance company can ask for proof that you paid your deductible" (TDI), and on a replacement cost policy it may hold back the rest of the payment until it has that proof (Ins. Code §707.004).
• A contractor can't adjust your claim. A contractor "may not act as a public adjuster or advertise to adjust claims" for a property it works on, even under a power of attorney (Ins. Code §4102.163).
• Read what you sign, especially anything about your insurance money. TDI warns that scammers present a contract "by calling it an estimate or a release just to go on your roof," and says not to sign contracts that say "Homeowner agrees to the listed repairs for the value of insurance proceeds," because "the contractor gets every penny from your insurance payment" (TDI). Treat any document that hands your claim, its payment or your rights under the policy to someone else (often called an assignment of benefits) the same way. Policies limit this: the TDP-3 says "Assignment of this policy will not be valid unless we give our written consent," and other forms have their own terms. Don't sign until you understand what you are giving up, and ask an attorney if you're unsure.
• Don't pay in full up front, and don't sign a contract with blank spaces (TDI).

Public adjusters are different from the insurance company's adjuster: they work for you, for a fee, and must be licensed by TDI. Their fee may not exceed 10% of the settlement (Ins. Code §4102.104), and TDI says you have 72 hours after signing to cancel the contract (TDI, Public adjusters). You still pay your deductible.

If you disagree with the decision

TDI lays out the options (TDI; homeowners complaint steps):

1. Tell the insurance company why, in writing, with your contractor's estimate and photos. It may adjust the offer.
2. Appraisal, if your policy has it, is for disputes about the amount, not about whether something is covered. You and the company each hire an appraiser, and an umpire (a neutral third person the two appraisers choose) settles differences. Check your policy for the deadline to demand it.
3. A complaint to TDI through its online complaint system. TDI contacts the company, which has 15 days to respond and can ask for a 10-day extension. TDI can't "Settle disputes when you and the company disagree about the facts," such as whether damage was caused by a storm or by wear and tear, and it can't take complaints about mortgage companies or contractors.
4. Legal help. Before suing over a weather-related property claim, Texas law generally requires written notice at least 61 days in advance (Ins. Code §542A.003); that chapter does not apply to TWIA, which has its own notice and two-year limits (TDI). Policies also limit the time to sue; the TDP-3 allows "two years and one day after the cause of action accrues." Talk to an attorney about your deadlines.

A short checklist

• Everyone safe; tenants told what happens next
• Photos and video taken before any cleanup
• Temporary repairs made; receipts kept
• Claim reported to the insurance company (and to TWIA or the flood insurer, if they apply); claim number written down
• Deductible worked out in dollars
• Adjuster's name, contact details and estimate in hand
• Lender's release requirements asked for in writing
• Nothing signed that hands over your claim or its payment

AIV Insurance is an independent insurance agency in Texas. We are not an insurance company and we don't handle claims: your claim is filed with, and decided by, the insurance company named on your policy. If you can't find the right claims contact, or want help reading your policy, reach us through the contact page or at hello@aivinsurance.com. If you're our client, you can tell us after you've filed, with the claim number, so our records match the insurance company's when we help you renew. It's optional, and telling us is not filing a claim.