When disaster strikes, the last thing a homeowner should have to worry about is whether their insurance company will honor their policy. Yet across Texas, nearly half of all home insurance claims are being closed without any payment.
If your home insurance company has denied your claim, ignored your calls, or suddenly closed your case, you’re not alone—and you don’t have to face it alone. This article breaks down why insurers are delaying, denying, and dodging payouts, and what you can do to fight back.
Nearly Half of Home Insurance Claims in Texas Go Unpaid
According to a 2024 analysis by Weiss Ratings, 14 of the largest home insurance companies in the U.S. closed nearly half of all homeowner claims without issuing any payment. In Texas alone, the average no-payment rate across the top 10 insurers was 47%—a dramatic increase from 35% in 2016.
The report revealed that major companies like State Farm, Allstate, and USAA routinely left homeowners without compensation, even after catastrophic damage events. Lemonade and Spinnaker led the pack with denial rates exceeding 60%.
This surge in unpaid claims reflects a broader industry trend: shifting risk and cost burdens onto policyholders. Homeowners are increasingly trapped by higher deductibles, reduced policy scope, and complex claims processes designed to frustrate and discourage payouts. The result? Insurers protect their profit margins—while Texans are left footing the bill for storm, fire, and water damage.
National Parallels: California Wildfire Claims Reveal Similar Patterns
The denial phenomenon isn’t just local. In California, regulators are actively investigating State Farm over its handling of post-wildfire claims following a wave of complaints. Homeowners reported significant delays, denials, adjuster no-shows, and chronic underpayments, particularly for damage caused by smoke, asbestos exposure, and structural issues.
According to a joint report by CalMatters and Finance & Commerce, many claimants were forced to resubmit documentation multiple times as adjusters were reassigned or failed to follow up. California Insurance Commissioner Ricardo Lara opened a formal market conduct investigation in June 2025, citing a breakdown in communication and failure to treat policyholders fairly. One homeowner described waiting over eight months for compensation, only to receive a payment that covered a fraction of their repair estimate.
These actions follow a broader recognition of underinsurance and flawed cost estimation software, which often leaves fire survivors without the funds needed to rebuild.
California’s experience underscores a national trend: when disaster strikes, many insurers prioritize cost control over contract compliance—and homeowners are the ones who suffer.
Why Are So Many Home Insurance Claims Being Denied?
Texas homeowners have found it increasingly difficult to secure full and timely payment for valid insurance claims.
Below are some of the key reasons homeowners are getting shortchanged:
Legislative Weakening
A 2017 Texas law—House Bill 1774—limited the penalties insurers face for delaying or underpaying valid claims. It also reduced policyholders’ ability to recover attorney’s fees in bad faith lawsuits and imposed stricter notice requirements.
This has made it more difficult for homeowners to successfully sue insurers and has emboldened companies to deny or stall claims without meaningful consequences.
Deductible Shenanigans
Many homeowners simply can’t afford the rising deductible thresholds now imposed on standard policies, often 2% to 3% of the home’s value for wind and hail damage.
This means that even when damage is legitimate, it might fall below the deductible, allowing insurers to close the claim without payment.
Aggressive Exclusions
Insurers increasingly rely on policy exclusions to justify non-payment. Common reasons include categorizing damage as “wear and tear,” “pre-existing,” or secondary to mold or smoke, regardless of whether these were caused by a covered event.
Poor Inspections and Undervaluation
Many reports reveal that adjusters perform brief, surface-level inspections and rely on flawed estimation software that undercalculates repair costs. This often results in lowball offers or unjust denials that leave homeowners struggling to cover the actual cost of repairs.
Tactical Delays
Insurers sometimes use delay tactics to exhaust or frustrate policyholders like reassigning multiple adjusters, requesting duplicative paperwork, or ignoring follow-ups.
This strategy mirrors what California regulators uncovered during their investigation into State Farm’s wildfire claim practices, where months-long delays and repeat document requests wore down homeowners until many gave up.
What Happens When a Home Insurance Company Ignores or Closes Your Claim?
A “closed insurance claim” occurs when:
- The insurer refuses or fails to pay.
- The policyholder’s deductible exceeds the claimed amount.
- Insurers intentionally draw out the process until homeowners withdraw.
This “delay-and-deny” tactic is designed to cut costs at your expense. When claims are closed silently or ignored, policyholders are left with major repairs out of pocket—like Regina in Houston, who shelled out $17k for a new roof after State Farm undervalued her claim.
Why You Need a First-Party Insurance Lawyer in Texas
When your insurance company stops responding, drops your coverage, or closes your claim without reason, you’re left navigating a system designed to protect insurers—not homeowners. That’s where legal counsel becomes critical.
A first-party insurance lawyer can help you fight back against wrongful denials, reopen closed claims, and ensure your rights are upheld under Texas law.
Help Reopening Your Closed Insurance Claim
Texas law allows supplemental claims for new or previously undiscovered damages. If you uncover additional loss after a claim closes, you can reopen it—but time is of the essence.
Our team at Daly & Black can help you compile evidence (like professional inspections or contractor estimates) and file a supplemental or reopened claim.
Legal Protection if Your Insurance Company Tries to Drop You
Texas regulations generally prohibit insurers from canceling or non-renewing a policy in retaliation for filing a claim. However, some companies still use tactics like shifting blame for delays or alleging fraud to justify dropping coverage. If you suspect your insurer is retaliating, contact us immediately. Retaliatory cancellation is illegal in Texas, and we can stop it.
What to Do When Your Home Insurance Company Isn’t Responding
If your insurer goes silent:
- Document everything—emails, calls, letters
- Send formal follow-up within your policy deadlines
- File a complaint with the Texas Department of Insurance
- Contact a lawyer—don’t wait until it’s too late
When your insurance company won’t pay what they owe, we step in. Whether your claim was closed, ignored, or delayed, Daly & Black can help you fight back and pursue the full compensation you may be entitled to.
FAQ
Can a closed insurance claim be reopened if I find more damage later?
Yes, if you discover new or previously undisclosed damages, Texas law allows supplemental claims. It’s best to document and act fast.
Can an insurance company drop you during a claim?
No, Texas prohibits insurers from canceling in retaliation for a claim. If that happens, contact Daly & Black immediately.
What should I do if my home insurance company is not responding to my claim?
Keep detailed records, file formal follow-ups, consider a TDI complaint, and legal action. Daly & Black can assist at every step.
If Your Claim Was Denied, You’re Not Alone
If your claim has been denied, closed, or delayed—and your insurer isn’t responding—contact Daly & Black today for a free consultation. We’ll assess your situation and help you get the outcome owed to you under your policy.