Water damage and insurance in Texas.
What the Texas Department of Insurance (TDI) says policies usually cover, what to do and when, and what a contractor is not allowed to do.
- Most Texas home policies cover sudden water damage, not gradual leaks or floods.
- Tell your insurer quickly, document everything, and keep receipts.
- A contractor can't waive your deductible or act as your adjuster.
What's usually covered
- Most homeowner and renters policies cover sudden and accidental water damage, such as burst pipes or overflows.source [8]
- Most don't cover water damage from gradual leaks or seepage, and that includes mold from them.source [8]
- Home policies don't cover floods. That takes a separate flood policy.source [8]
- Most home policies don't include mold cleanup and testing after a damaged item is removed. Some insurers let you add that coverage.source [8]
To check your own coverage, read your policy or call your agent.source [7]
What to do, and when
- Stop the water as soon as you can, and dry the area as soon as you can.source [8]
- Make temporary repairs to protect the house and belongings. Don't make permanent repairs until your insurance company has seen the damage.source [8]
- Tell your company as soon as possible. Hidden water damage usually has to be reported within days after you first see it.source [8]
- Take pictures or video before repairs. Don't throw away damaged items until your adjuster has seen them. Keep receipts.source [8, 9]
What TDI tells homeowners
- Write down the date and time you first saw the damage.source [7, 8, 9]
- Take photos and video before any repairs.source [7, 8, 9]
- Prevent further damage, and save every receipt.source [7, 8, 9]
- Don't make permanent repairs until your insurer gives the OK.source [7, 8, 9]
- Keep damaged items until the adjuster has seen them.source [7, 8, 9]
- Keep a log: when you called, who you talked to, your adjuster's name.source [7, 8, 9]
- Before hiring a contractor: don't sign a contract with blank spaces, and don't pay in full upfront.source [7, 8, 9]
Your insurer has 15 business days to acknowledge your claim, then 15 business days after it has what it needs to decide. It can take 45 more days if it tells you why. A rejection must be explained in writing. TDI help line: 800-252-3439.source [17]
When the check arrives
TDI's disaster-claims FAQ says the first check will likely be for the actual cash value, and that once you have started repairs and show proof, the company will send the remainder. If you dispute the amount, talk to your company before you sign the check, because some companies consider your claim final if you sign it.source [9] TDI's help line is 800-252-3439.source [9]
What a contractor can and can't do in Texas
- It is illegal in Texas for a contractor to offer to waive, rebate or absorb a property policyholder's deductible. TDI cites Business and Commerce Code 27.02.source [10]
- A contractor can't act as a public adjuster on a claim for work they are also doing, and can't advertise that they'll handle your insurance claim. TDI cites Insurance Code 4102.163.source [10, 11]
- Public adjusters are licensed by TDI and can charge up to 10% of the total amount the company will pay on the claim.source [11]
Halebright is a water-mitigation company. We find the source, dry the house, and give you the Halebright Record. We are not your adjuster, your claims representative or your lawyer, and we don't negotiate your claim.
If a claim is disputed, TDI lists your options: talk to your adjuster, hire a licensed public adjuster, contact an attorney, or file a complaint with TDI.source [17]