What to Do If Your Property Insurance Claim Is Denied
Opening a denial letter from your insurance company can feel heart-wrenching. You paid your premiums for years, you filed your claim correctly, and now you’re being told the damage to your home, business, or church isn’t covered. It’s easy to feel hopeless.
In my experience, a denial often isn’t the end of the road. Insurance companies deny and underpay valid claims all the time, sometimes because an adjuster rushed the inspection, misread the policy, or blamed the damage on “wear and tear” without looking closely. And sometimes it’s because they’re counting on you to give up.
A denial is the insurer’s opinion of your claim, not the final word on what you’re owed.
I’ve represented many Texas property owners who were told no and later recovered what their policy promised. What made the difference was usually what they did in the weeks right after the denial.
Step by Step
What to Do After a Denial
Unlike health insurance, property insurance claims in Texas don’t have a formal appeal process, but you can still build a record and challenge the denial. Here’s what I recommend:
1. Get the Denial in Writing
If your insurer told you over the phone that your claim was denied, ask for a written explanation. The letter should state the specific reason for the denial and point to the policy language the insurer relied on. A vague answer like “not covered” isn’t enough. You need to know exactly what the insurer is claiming so you can respond to it.
2. Request a Complete Copy of Your Policy
Many people have only the declarations page, which summarizes their coverage but leaves out the details that matter. Ask your insurer for a certified copy of your full policy, including every endorsement and exclusion. The wording in those pages often decides whether a denial holds up.
3. Ask for the Adjuster’s Report and Photos
Your insurer’s decision was based on what its adjuster saw or didn’t see. Request a copy of the inspection report, photos, and any engineer or contractor reports used to evaluate your claim. When I review these documents, I often find that the adjuster didn’t spend enough time on the property, skipped key areas, or reached a conclusion the evidence doesn’t support.
4. Document the Damage Yourself
Don’t rely on the insurer’s record alone. Take dated photos and videos of all the damage. Keep repair estimates, receipts, and invoices, and hold on to damaged materials if you can. Once something is thrown away, it can’t be inspected again.
5. Keep a Record of Every Conversation
Write down the date, time, and name of everyone you speak with at the insurance company, along with what they told you. Save every email and letter. If the insurer later changes its story or claims it never received something, your notes can make a big difference.
6. Protect Your Property From Further Damage
Most policies require you to take reasonable steps to prevent more damage, like tarping a roof or drying out a water leak. Insurers sometimes use new damage as another reason to deny or reduce a claim. Make temporary repairs as needed, and keep the receipts so you can be reimbursed.
7. Get an Independent Inspection
An insurer’s adjuster works for the insurance company, not for you. An independent inspection by a qualified contractor, engineer, or attorney who understands construction can show the true cause and extent of the damage. My practice focuses on homes, businesses, and houses of worship, and I inspect properties in person because seeing the damage firsthand often reveals what the insurer missed.
Avoid These Mistakes
What Not to Do After a Denial
What you avoid doing after a denial matters just as much as the steps you take to challenge your denial. These common mistakes can weaken a valid claim:
Protect Your Claim
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✕Don’t cash a check marked “full and final payment” without advice. Depending on the wording, accepting it could limit your ability to recover the rest of what you’re owed.
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✕Don’t sign a release or settlement agreement until you understand exactly what rights you’re giving up.
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✕Don’t guess when answering the insurer’s questions. If you’re unsure when the damage started or what caused it, say so. Insurers may use a casual guess to support a denial.
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✕Don’t accept the adjuster’s word as final. Adjusters make mistakes, and their conclusions can be challenged with the right evidence.
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✕Don’t wait. Your policy and Texas law both set deadlines, and every week you wait makes evidence harder to gather.
Time Matters
Time Is Limited to File a Lawsuit
Texas law sets strict deadlines for taking legal action against your insurance company, and missing one can mean losing your claim entirely, no matter how strong it is. The deadline that applies to you depends on the type of claim and the wording of your policy:
Bad faith claims: You generally have two years to file a lawsuit, usually starting on the date your insurer wrongfully denied or underpaid your claim.
Breach of contract claims: Texas law normally allows four years, but many property policies shorten that window to as little as two years. Some policies start the clock from the date of loss rather than the date of denial.
Pre-suit notice: For many property claims involving storms or other natural forces, Texas requires you to send your insurer written notice at least 61 days before filing a lawsuit.
These deadlines make it important for property owners to talk with an attorney as soon as possible after a denial. The earlier I get involved, the more time I have to inspect your property, gather evidence, and build a strong case before any deadline gets close.
Free Consultation
Was Your Claim Denied? Let’s Talk.
I’ll review your denial, look at the damage firsthand, and give you an honest read on your case. You won’t pay a fee unless we win.