Home Insurance Forum

Oct. 5, 2007

Is it state law in Texas that homeowners insurance can not pay a claim for 45 days for a home that burned if there is an arson investigation — even if the investigation does not center around the owner?

Kelli, Texas

Dear Kelli,

According to Texas Insurance Code, a home insurer can delay its decision on the claim for 45 days, or more. Here's what the law says about the timing of the claims process:

Initially, an insurance company has 15 days to notify an insured of receipt of the claim, either by writing or calling you.

The insurance company then has an additional 15 business days (or 30 days, if arson is suspected) to notify you, in writing, that it plans to do one of the following:

• Pay the claim
• Deny the claim
• Take more time, specifying the reasons why more time is necessary.

So, yes, an insurance company could go as long as 45 days after initial notification before deciding to pay you. In fact, if the company decides that it needs more information to resolve the claim, it can take longer.

Once the insurance company has notified you that it will pay the claim, it has to pay within five business days.

Under normal circumstances, if you file a claim on Nov. 1, 2007, and the company suspects arson, you should have a check in your hands by Christmas at the latest.

If you think your insurance company is delaying unnecessarily, you should contact the Texas Department of Insurance and consider filing a complaint. You'll find the department's address, phone number, and a link to its Web site on our main Texas page.

Back to the Forum

Disclaimer: We are journalists, not financial planners or insurance brokers. Nothing we say should be interpreted as a recommendation to buy or sell any insurance product, or to provide other financial or legal advice.