Fire Insurance Claim Process in Texas: What to Know About Your Rights

Fire is a constant threat to buildings, particularly in dry parts of Texas. Since 2005, the state has endured over 243,000 separate wildfires, burning a staggering 13.9 million total acres. Property owners must take great care when choosing insurance to make sure that they are covered in the event of a blaze. They must also properly file insurance paperwork if a fire does occur, so they can receive the benefits they are entitled to.

If you own property, our trusted fire damage lawyers will help you understand what to do after a building or house fire to make the claims process go as smoothly as possible.

What Is Covered by Your Fire Insurance Policy in Texas

Most homeowners' insurance policies, known as HO-3 policies, offer some level of fire coverage for your dwelling, other structures on the property, personal property, personal liability, medical payments to guests, and loss of use.

• Dwelling coverage: Dwelling coverage is also known as Coverage A. It encompasses fire damage to the structure that you and your family occupy. On your policy documents, you will see a face amount of the policy, which is the maximum you will be paid if your home suffers complete and total destruction.
• Other structures: Other structures are included in Coverage B. These include any structure on your property that is not your dwelling, such as detached garages, sheds, and fences.
• Personal property: Coverage C is for damage to or loss of personal property. It includes the contents of your household, such as personal belongings owned and used by members of your family.
• Additional living expenses: Additional living expenses are covered by Coverage D. They include necessary living expenses you may incur to maintain your standard of living while your house is unable to be occupied because of a covered loss.
• Personal liability: Personal liability is handled by Coverage E and covers liability that you might face for injuries or property damage suffered by tenants or guests.
• Medical expenses: Coverage F is for medical expenses that occur due to the fire and is paid out to injury victims regardless of legal liability.

When you have a good understanding of the nature and coverage of your insurance policy, you will be able to navigate the insurance claims process more adeptly and with less stress. With an experienced fire claim attorney helping you, you won't have to worry about anything but rebuilding and tending to your and your family's needs.

When Would Homeowners' Insurance Not Cover Fire Damage?

While most homeowners' insurance policies provide comprehensive fire coverage, understanding the limitations and exclusions is crucial for proper protection. Your policy's coverage depends on two main categories of perils and specific exclusions that could affect your claim:

• Open peril coverage: Your dwelling is typically covered for any fire damage not specifically excluded in your policy.
• Named peril coverage: Your personal property is only covered for specifically listed perils like fire, explosions, and hail.

Understanding these exclusions helps you identify potential coverage gaps and consider additional insurance protection where needed.

• Intentional acts or arson committed by policyholders or named individuals.
• Fires caused by war or nuclear hazards.
• Damage from earth movement that leads to fire.
• Business-related property in home offices (may need separate coverage).
• Certain high-value items without scheduled coverage.
• Damage from floods that occur after the fire department's emergency services.

Steps to Take Immediately After a Fire

Fires are traumatic events that often cause panic and shock. However, if you are involved in a fire, you must overcome these feelings and take the following steps to mitigate the fire damage and help ensure that your claims process is successful.

• Secure your property: Call emergency services, board up openings, and fence off damaged areas to prevent further damage, vandalism, or unauthorized entry (never risk your safety).
• File your insurance claim immediately: Contact your insurance company as soon as possible to avoid delays and ensure your claim gets priority attention from adjusters.
• Document all losses: Take comprehensive photos and create detailed inventories of all fire damage, smoke damage, and destroyed personal belongings.
• Request claim advances: Ask your insurance company for advance payments to cover immediate essentials like clothing, food, and medicine through a written request.
• Track additional living expenses: Keep receipts for hotel stays, restaurant meals, and other expenses above your normal living costs for full reimbursement.
• Inspect for hidden damage: Hire professionals to check behind walls, under floors, and above ceilings for structural damage that may not be immediately visible.
• Continue premium payments: Maintain your insurance coverage by continuing to pay premiums even after filing a claim.

Following these steps systematically will help protect your property and maximize your insurance recovery.

Understanding the Fire Insurance Claim Process

To successfully navigate the aftermath of a fire, it's essential to grasp the fundamental steps of the fire insurance claim process.

Initial Claim Filing and Notification

The fire insurance claim process begins with you notifying the insurance company as soon as possible of the fire damage. Under Texas law, you have two years from the date of the fire incident to file your homeowners insurance claim, though most policies require immediate notification for optimal processing.

Insurance Company Investigation and Assessment

Once the insurance company has received your claim, it will likely send out an insurance adjuster to investigate the site, assess the damage, and estimate the rebuilding costs and repair costs. The insurance adjuster will review your homeowners insurance policy to identify the extent of your insurance coverage and determine what structural damage, smoke damage, and personal property losses are covered.

Texas insurance companies must acknowledge your claim within 15 days of receiving it and have another 15 days to investigate after receiving all required documentation.

Settlement Negotiation and Payment

After the adjuster has finished the investigation and determined what is covered and not covered by your policy, they will provide you with repair estimates that detail the costs of replacing and repairing damaged or destroyed items. When you receive the written estimate from the adjuster, you will review it with your insurance company.

Once you and the insurance company agree regarding the adjuster's estimates, the insurance company must issue payment within 5 business days under Texas's Prompt Payment of Claims Act. If your claim is approved, you're entitled to 18% annual interest on delayed payments plus reasonable attorney's fees if the insurance company violates Texas prompt payment deadlines.

Remember that the insurance claims process can be time-consuming and complicated. As such, you should remain in close contact with your insurance company until your case is resolved. Doing so will help ensure that your claim is processed on time.

Insurance Company Obligations During the Fire Insurance Claim Process

Insurance companies are obligated by law and contract to act in good faith and fair dealing when processing insurance claims. Good faith and fair dealings typically entail:

• Prompt and clear communication with the claimant throughout the claims process.
• Robust defense for policyholders when facing a liability claim.
• Approving or denying insurance claims on time, including acknowledging receipt of claims and investigating their merits in a reasonable amount of time.
• Working at all times to arrive at an equitable and fair settlement of insurance claims promptly.
• Informing claimants of denials with detailed explanations and reasons.

If the insurance company handling your claim fails to act in good faith and fair dealings, you can potentially sue it for bad faith or breach of contract. A lawsuit will allow you to claim damages against the insurance company for losses incurred by its bad faith actions or contract breach.

Tips for Dealing with the Insurance Adjuster

Successfully navigating your fire damage insurance claim often hinges on how you manage your interactions with the insurance adjuster.

• Always be courteous and cooperative when communicating with your adjuster, but never feel obligated to accept an offer that you do not agree with.
• Never accept or agree to any settlements or stipulations until you have thoroughly reviewed every aspect and detail of your case and discussed them with an attorney.
• Always remember that the insurance adjuster has the best interests of the insurance company in mind and will try to pay you less than you deserve. You should be prepared to negotiate for a proper payout.
• Stick with the pertinent facts during the claim process. Do not give out any irrelevant facts and information. Doing so can muddle the claim process and even lead to a reduction or denial of a payout.
• Do not embellish or exaggerate the nature of the destruction and injuries you have suffered.
• Document every communication you have with your adjuster and insurance agent, including emails, phone calls, and texts.
• Reach out to an attorney for help if you have any doubts or confusion whatsoever.
• Have patience with the process, which may require multiple rounds of negotiations before a satisfactory settlement is agreed upon.

Common Fire Insurance Claim Mistakes That Can Damage Your Case

Making a huge mistake during the fire insurance claim process can significantly impact your final settlement. Here are common errors to avoid:

• Failing to document all damages immediately after the fire.
• Not keeping receipts for temporary living expenses and additional costs.
• Accepting the first settlement offer without negotiation — mixing damaged property with undamaged items.
• Not understanding the difference between actual cash value and replacement cost coverage.
• Failing to handle claims properly by not working with professionals when needed
• Not getting multiple repair estimates for structural damage.
• Assuming the insurance company will automatically provide full reimbursement without proper documentation.

What to Do If Your Fire Insurance Claim Was Denied

Upon receiving a denial from your insurance company, you should first review your policy and the reasons given for the denial to understand the failure to approve the claim. If you need more clarification as to why your claim was denied, contact the insurance company and ask for further explanation.

If you believe an error was made or that your claim was processed unfairly, request that the insurance company reopen the claim. You should also consider meeting with an experienced fire insurance claim lawyer who can evaluate your case and help you explore your options for moving forward.

Omar Ochoa Law Firm: Trusted Partner for Fire Insurance Claims

Property fires are never welcome. But you can ensure a smooth claims process by understanding the scope of your insurance coverage and knowing what to do in the event you experience a blaze.

At the Omar Ochoa Law Firm, we have helped thousands of commercial and residential clients through the claims process and would like to help you, too. Contact us for a free case review and consultation with an experienced property damage lawyer. Remember, you pay nothing unless we win.