Best Insurance Lawyers in Texas

About Insurance Law in Texas, United States

Insurance law in Texas governs how insurance companies operate and how insurance policies protect individuals, families, and businesses. The Texas Department of Insurance (TDI) is responsible for regulating and enforcing state insurance standards. Insurance law covers a wide variety of products, including auto, home, health, life, liability, and business insurance, as well as the practices insurance companies use when evaluating claims and setting premiums. The aim of these laws is to ensure consumers are treated fairly, policy terms are clear, and that insurers are financially stable and comply with state regulations.

Why You May Need a Lawyer

Insurance policies may seem straightforward, but disputes with insurance companies are common. You may need legal help in the following situations:

• Your insurance claim has been denied or delayed.
• You believe an insurance company is acting in bad faith or violating policy terms.
• You are facing unfair claim settlement practices or ambiguous policy language.
• You need representation after a car accident or in a personal injury claim involving insurance coverage questions.
• You have issues with property damage or homeowner’s insurance claims after events such as storms or fires.
• You are involved in life insurance beneficiary disputes.
• You need assistance with insurance claims related to business losses or professional liability.

Local Laws Overview

Texas insurance law is based on both statutes and regulations set forth by the Texas Legislature and enforced by the Texas Department of Insurance. Key aspects of Texas insurance law include:

• Prompt Payment of Claims Act - Insurers are required to acknowledge, investigate, and pay valid claims within specific timeframes. Delays without good reason can result in the insurer owing additional damages.
• Bad Faith Insurance Practices - Texas law prohibits insurers from denying claims without a reasonable investigation or without a reasonable basis.
• Minimum Coverage Requirements - Texas requires drivers to carry certain minimum amounts of auto liability insurance. Homeowners may be required to have insurance by their mortgage lender.
• Consumer Protections - The TDI has established regulations to prevent deceptive and unfair practices, including clear disclosures in policy documents.
• Statute of Limitations - There is a limited window of time to bring legal action over insurance disputes, commonly two years, but this can vary depending on the type of claim.
• Appraisal and Mediation - Many policies and Texas law provide for alternative dispute resolution methods such as appraisal or mediation when there is a disagreement over the value of a claim.

Frequently Asked Questions

What should I do if my insurance claim is denied?

Carefully review the denial letter and your policy. Contact your insurer for clarification. If you believe the denial is unjustified, consider contacting an attorney or the Texas Department of Insurance for additional help.

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

Under the Prompt Payment of Claims Act, insurers generally must acknowledge your claim within 15 days, accept or deny it within 15 business days of receiving all necessary information, and make payment within five business days after accepting the claim.

What is bad faith in insurance?

Bad faith occurs when an insurance company refuses to pay a valid claim, delays payment, or otherwise fails to fulfill its legal obligations to the policyholder without a reasonable basis. Texas law allows you to seek damages if your insurer acts in bad faith.

How can I file a complaint against an insurance company?

You can file a complaint with the Texas Department of Insurance, which has channels for resolving consumer issues with insurance companies and agents licensed in Texas.

Can an insurance company cancel my policy without notice?

Texas law requires insurers to provide advance written notice before canceling most policies. The number of days’ notice required depends on the type of policy and the reason for cancellation.

Are there minimum auto insurance requirements in Texas?

Yes, Texas law requires all drivers to carry at least $30,000 of coverage for injuries per person, $60,000 per accident, and $25,000 for property damage per accident. Additional coverage may be purchased for extra protection.

Do I have to accept the settlement offered by my insurance company?

No, you can negotiate or dispute a settlement if you believe it is insufficient. You may seek mediation, arbitration, or legal advice to resolve the disagreement.

What is the appraisal clause in an insurance policy?

The appraisal clause allows either the insurer or the insured to demand an appraisal when there is a dispute over the value of a covered loss. Each party selects an appraiser, and an umpire may be chosen if needed.

How long do I have to file a lawsuit for an insurance dispute?

The statute of limitations for most insurance disputes in Texas is two years, but it is important to check your policy and consult with counsel, as timelines can vary depending on the specific type of claim.

What happens if my insurance company is insolvent?

The Texas Property and Casualty Insurance Guaranty Association may cover certain outstanding claims if an insurer licensed in Texas becomes insolvent, but limits and conditions apply.

Additional Resources

If you need more information or assistance, consider these resources:

• Texas Department of Insurance (TDI) - Oversees state insurance regulations and consumer complaints.
• Consumer Help Line - TDI operates a helpline for filing complaints or seeking guidance.
• Texas State Bar - Offers lawyer referral services and legal resources.
• National Association of Insurance Commissioners (NAIC) - Provides national information and consumer protection resources.
• Texas Property and Casualty Insurance Guaranty Association - Assists in claims when insurers become insolvent.

Next Steps

If you need legal assistance with an insurance issue in Texas, you should:

• Review your insurance policy and correspondence from your insurer thoroughly.
• Document all communication and actions related to your insurance claim.
• Gather evidence, such as photographs, repair estimates, and expert reports, relevant to your case.
• Contact the Texas Department of Insurance for initial guidance or to file a complaint if you suspect unfair practices.
• Consult with an experienced insurance lawyer who understands Texas law to evaluate your legal options. The State Bar of Texas can help you find qualified legal professionals.
• If you believe you cannot afford a lawyer, look for legal aid clinics or non-profit organizations that offer assistance based on financial need.