In my previous post, Rent or Own, the Insurance Bill of Rights is for You, I explain how the Texas Consumer Bill of Rights was created to protect the homeowners' and renters' rights by laying out guidelines for the insurance companies to follow.
There might be a time when you will need to open a claim with your insurance company. Could be for a new roof or a broken pipe. Most policyholders have little experience about the claim process, this is why I have laid out the basics when it comes to filing an insurance claim.
How the claim process works:
When beginning the claim process, the first step is to file your claim as soon as possible. After opening a claim, your insurance …show more content…
If the insurance company accepts the claim, they have 5 business days to pay. If the company rejects the claim, they must give you a written statement explaining their decision. This can be found in the Texas Insurance Code 542.056 through 542.059.
There are always exceptions to the rules.
If the insurance company needs more time, it could take up to 45 days to make a decision on the claim, but the insurer must send a notice stating the cause of the delay. If the company suspects arson during a fire claim, this is an additional 30 days. If the claim involves a natural disaster, this gives the company an extra 15 days and surplus line carriers have 20 days to pay your claim after agreeing to do so. Texas Insurance Code 542.056 and 542.059.
Food for thought:
If the insurance company is taking their sweet time with the claim process or taking way too long to pay the claim, you have the option of hiring an insurance attorney to sue the company. If you win, the insurance company may owe you interest at the rate of 18% per year plus attorney fees. Texas Insurance Code 542.060.
If you would like more information about this specific topic or have other insurance questions, click on the blue button