Texas Insurance Rights

Texas law gives you certain rights regarding your homeowners, dwelling and renters insurance.  If your agent, company, or adjuster tells you that your rights are limited, contact the TDI (Texas Department of Insurance) at 1-800-252-3439.  The following information is not exhaustive and should be verified with the TDI.  For an exhaustive  list of your specific rights, see the TDI website http://www.opic.state.tx.us

Facts & Information Highlights

Overview of Your Rights

• You have the right to call TDI free of charge 1-800-252-3439 to learn about your rights, license status of an insurance agent, their complaints ratio, rate comparison, and other consumer concerns

• You have the right to a too-free number to call your insurance company free of charge with questions or complaints.

Buying Insurance

• Your insurance company or agent cannot make false, misleading, or deceptive statements to you relating to insurance.

• Upon request, you have the right to be told in writing why you have been denied coverage.  The written statement must fully explain your denial.

Discounts

• Your insurance company must offer the following discounts if you follow specific and required procedures: (1) Home security specifications for doors, windows and locks at 5% (2) Centrally monitored electronic burglar alarm at 15% (3) Fire protection sprinkler system at 8% (4) Impact-resistant (hail-resistant) residential roof at 1% to 35% depending on location of property and classification of roofing material

Cancellation

• After your initial policy with your company has been in effect for 90 days, that insurance company cannot cancel your policy unless:

  • you don't pay your premiums when due

  • you file a fraudulent claim

  • there is an increase in the hazard covered by the policy that is within your control and results in an increase in the policy premium

  • TDI determines continuation of the policy would result in violation of insurance laws

• To cancel your policy, your insurance company must mail you at least 10 days notice of cancellation.

• If the insurance company does not mail you notice of non-renewal at least 30 days before your policy expires, you have the right to require the insurance company to renew your policy.

• You have the right to cancel your policy at any time and receive a refund of the remaining premium.

• If you marital status changes, you have the right to continue your insurance coverage.

Non-Renewal

• Your insurance company cannot use claims you filed as a basis to non-renew your policy unless:

  • you file three or more claims in any 3-year period; and

  • your insurer notified you in writing after the second claim that filing a third claim could result in non-renewal of your policy.

• In determining the number of claims filed, your insurance company cannot include:

  • claims for damage from natural causes, including weather-related damage; or

  • claims filed but not paid or payable under the policy.

Claims

• You have the right to be treated fairly and honestly when you make a claim.

• If you believe your insurance company has treated you unfairly, call TDI at 1-800-252-3439

• You can download a complain form online at http://www.tdi.state.tx.us

• You have the right to reject any settlement amount.  

• You have the right to have your home repaired by the repair person of your choice.

• The insurance company must tell you in writing why your claim or part of your claim was denied.

• You may refuse to provide your federal income tax records unless your insurer gets a court order or your claim involves lost income or a fire loss.

• You have the right to have your claim processed and paid promptly.

• After notifying you that your claim is approved, your insurance company must pay the claim within 5 business days.

Discrimination

• An insurance company cannot discriminate against you by:

  • refusing to insure you based on race, color, sex, marital status, religion or national origin.

  • determine your rate based on race, color, religion, or national origin.

  • refuse to renew your policy based on your race, color, religion, marital status, sex, age, or national origin.

• An insurance company cannot refuse to insure your property based on the age of your house.

• An insurance company cannot refuse to insure your property because the value is too low or because the company has established minimum coverage amounts.

Enforcement

• You have the right to complain to TDI about any insurance company and/or insurance matter and to receive a prompt investigation and response to your complaint.  To do so, you should:

  • call TDI Consumer Help Line at 1-800-252-3439

  • write to the Texas Department of Insurance, Consumer Protection (111-1A), P.O. Box 149091, Austin, Texas 78714-9091

  • e-mail TDI at ConsumerProtection@tdi.state.tx.us

  • fax your complaint to (512) 475-1771

  • download or complete a complaint form on line from the TDI website at http://tdi.state.tx.us or WOSG-modem: 1-800-227-8392, in Austin 475-1051

• NOTE: TDI offers interpreter services.

• If an insurance company violates your rights, you may be able to sue that company in court, including small claims court, with or without an attorney.

• If you sue to recover under your insurance policy, the insurance company has the burden or proof as to any application of an exclusion in the policy and any exception to or other avoidance of coverage claimed by the insurer.