Nearly Half of Texas Home Insurance Claims Go Unpaid—What Policyholders Need to Know
- Inge Johnstone
- 7 hours ago
- 2 min read
When Disaster Strikes, Many Texans Are Left Empty-Handed
According to a recent Houston Chronicle investigation, nearly 47% of homeowner insurance claims in Texas were closed without payment in 2023—a staggering increase from 35% in 2016. This growing gap between coverage expectations and outcomes is leaving many homeowners without the financial protection they paid for.
What’s Behind the Rising Denial Rate?
Several factors are converging to make insurance payouts harder to obtain:
1. Higher Deductibles
Many homeowners now have wind and hail deductibles that are 2%–3% of the home’s insured value. That means policyholders could pay $6,000–$9,000 out of pocket before coverage begins.
2. Reduced Coverage
Recent years have brought narrower policy language, exclusions, and tougher interpretations. Damage once considered covered is now often classified as cosmetic or pre-existing.
3. Legislative Weakening
A 2017 Texas law limited penalties for insurers who delay or underpay claims, making it more difficult for homeowners to successfully sue for bad faith.
What This Means for Homeowners
At Johnstone Trial Law, we are seeing more clients come to us after being offered lowball settlements—or no payment at all—for legitimate claims. The Chronicle article highlights stories of Texans who were forced to pay for full roof replacements themselves because their insurer denied or drastically underpaid the claim.
Why the System Is Failing Texans
Climate pressure: Texas has seen a rise in catastrophic events, pushing insurers to raise rates or withdraw from high-risk areas.
Limited legislative action: Despite widespread concern, the Texas Legislature has not passed meaningful consumer protection reforms in 2025.
Lack of transparency: Homeowners are often unaware of policy changes until it’s too late.
How to Protect Yourself
If you're a homeowner in Texas, here are some ways you can take action:
✅ Understand Your Deductible and Policy Language- Know exactly how much your wind/hail deductible is in dollars—not just as a percentage. Be aware of exclusions, especially roof damage exclusions and limitations, which are becoming more common.
✅ Keep Documentation - Photos, estimates, emails, and even call logs can make a huge difference when disputing a denial.
✅ Act Promptly After Damage- Report damage quickly and seek a second opinion if an adjuster underestimates the loss.
✅ Know Your Rights- If your claim is denied or underpaid, you may still have legal remedies. Texas law requires insurers to act in good faith and deal fairly with policyholders. Texas law also provides for statutory remedies in some situations that may allow attorneys fees, interest and even triple damages.
✅ Consult a Policyholder Attorney- Don’t go it alone. Insurers have legal teams—so should you.
Final Thoughts
Home insurance is supposed to provide peace of mind. But for nearly half of Texas claimants, it provided nothing at all last year. At Johnstone Trial Law, we help homeowners and business owners level the playing field when insurance companies don’t keep their promises.
If you’re facing an unpaid or underpaid claim, reach out to us. You deserve to know your rights—and to be treated fairly. Contact us for a free consultation.
