Texas Prompt Payment Act: Your Rights After a Storm Damage Insurance Claim
- superadmin33
- Aug 1
- 4 min read
If your Texas insurance claim is delayed after hail or storm damage, the law may entitle you to penalties, interest, and legal fees.
Table of Contents
What Is the Texas Prompt Payment of Claims Act?
When the skies clear after a Texas storm, the damage often lingers—on rooftops, in yards, and sometimes in your wallet. Whether it’s hail, wind, or water intrusion, the true hardship begins when insurance companies delay or deny your claim.
That’s where the Texas Prompt Payment of Claims Act (TPPCA) steps in. This law, found in Texas Insurance Code §§ 542.051–.061, ensures insurance companies process valid claims quickly—and penalizes them if they don’t.
If your insurance company is dragging its feet, you may be entitled to:
Interest on the claim amount
Attorney’s fees
Full payout for your damages
How the Law Protects Texas Storm Victims
Insurance providers are obligated to act in good faith and process claims promptly. However, after widespread storms, some companies slow-roll their response—delaying inspections, undervaluing repairs, or simply failing to communicate.
The TPPCA puts a clear timeline on their obligations, and holds them accountable when they miss it.
Fair process
Fast payment
Penalties for noncompliance
Whether you're dealing with hail in Dallas or wind damage in Corpus Christi, this law is designed to protect your rights.
Claim Timeline: Your Rights and Insurer Deadlines
Here’s how the process is supposed to work:
Timeline | Action Required |
Day 0 | You report the damage to your insurance company. Clock starts. |
Within 15 Business Days | Insurer must acknowledge claim, start investigation, and request documents. |
Within 15 Business Days After Docs | Once you've submitted what they asked for, insurer must accept or deny in writing. |
Within 5 Business Days of Approval | If approved, payment must be issued. |
⏰ Missed Deadline?
Your insurer may owe you interest and attorney's fees—on top of the claim amount.
Common Insurance Company Violations
If your insurance company has gone quiet or keeps “evaluating,” you’re not alone. Here are three common violations under the Texas Prompt Payment Act:
1. Delayed Acknowledgment
The insurer takes longer than 15 business days to respond or open the claim.
2. Stalled Investigation
You've submitted everything—but they say they’re still reviewing or waiting on internal approvals.
3. Late Payment After Approval
They accept the claim but don’t send a check for weeks (or months).
These violations can cost you more than time—they can delay repairs and open you up to secondary damage that isn’t always covered.
Who Is Covered Under the Act?
Most Texans with property insurance are protected by the Prompt Payment Act.
Applies to:
Homeowners insurance
Renters insurance
Commercial property insurance
Condominium unit owner policies
Landlord or rental property policies
Ⓧ Exemptions may include:
Surplus lines insurers (non-admitted carriers)
NFIP flood insurance
Certain government-backed policies
Even if your carrier is exempt, other laws or contract provisions may still protect your rights.
When to Contact an Insurance Claim Attorney
If you're dealing with delays, denials, or lowball offers, it's time to bring in legal support.
Signs You Should Talk to a Lawyer:
✔ | No acknowledgment within 15 business days |
✔ | You've submitted documents, but no decision is made |
✔ | Your claim is denied without explanation |
✔ | You receive a settlement offer far below repair costs |
✔ | Approved claim, but still no payment |
A qualified Texas insurance attorney can help enforce the law and recover penalties on your behalf.
Protect Yourself: Action Steps for Texas Policyholders
Here’s how you can take control of your insurance claim today:
1. Document Everything
Take photos/video of damage
Save repair estimates and invoices
Keep copies of every email or letter
2. Track the Timeline
Start a simple claim log. Include:
When you filed the claim
When you sent documentation
When you heard back (or didn’t)
DOWNLOAD OUR FREE INSURANCE CLAIM TRACKER:
3. Consult a Storm Damage Lawyer
Even a brief legal review can:
Confirm if deadlines were missed
Assess what penalties may apply
Initiate communication that gets results
FAQs
Q: What is the penalty for a delayed claim in Texas?
A: 18% interest per year on the claim amount, plus reasonable attorney’s fees.
Q: Does the Prompt Payment Act apply to hail or wind damage?
A: Yes. Most residential and commercial storm damage claims are covered under the Act.
Q: What if my insurer says delays are reasonable after a major storm?
A: Catastrophes may extend timelines—but delays must still be reasonable and documented. Silence or stalling is not an excuse.
Q: Can I still recover if the claim was underpaid but not denied?
A: Yes. Underpayment is a common form of breach, and an attorney can pursue full damages plus penalties.
Final Thoughts
The Texas Prompt Payment Act is more than just legal language—it’s a powerful tool for homeowners and business owners recovering after a storm.
If you’re facing delays, denials, or lowball payouts:
✔ You don’t have to wait forever
✔ You don’t have to accept less than you’re owed
✔ You have rights. And we can help you enforce them
Need Help with a Delayed or Denied Claim?
At VG Law, we help Texans get the insurance payouts they’re legally entitled to—including interest and penalties for delay.
Free Consultation
No Fee Unless We Win
Bilingual Staff Available
Serving All of Texas
📞 Call (833) 435-7365 or click here to schedule your free claim review.
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