Question 1

What should I do if my commercial property insurance claim is denied in Texas?

Accepted Answer

Do not accept the denial as final. Contact a Houston commercial property insurance attorney immediately. McLaurin Law reviews your policy, the denial letter, and the adjuster's findings to determine whether the denial is valid under your policy terms and the Texas Insurance Code. Many denials that initially appear airtight contain fatal defects when scrutinized by an experienced attorney. You have legal rights to appeal and to pursue litigation, but timing matters.

Question 2

How long does my commercial property insurer have to respond to my claim in Texas?

Accepted Answer

Under the Texas Insurance Code, your insurer must (1) acknowledge receipt of your claim within 15 calendar days; (2) accept or reject the claim within 15 business days after receiving all required documentation, extendable to 45 days with written notice; and (3) pay accepted claims within 5 business days of acceptance. Violations entitle you to 18% annual interest on the claim amount plus attorney's fees under Texas Insurance Code Section 542.058.

Question 3

What is the difference between Replacement Cost Value and Actual Cash Value in a commercial claim?

Accepted Answer

Replacement Cost Value (RCV) pays the full cost to repair or replace your damaged property with new materials of like kind and quality, with no deduction for depreciation. Actual Cash Value (ACV) deducts depreciation, meaning you receive the depreciated market value rather than the cost to restore. The difference on a commercial roof or HVAC system can easily run $50,000 to $200,000. Insurers sometimes apply ACV even when policies clearly require RCV. McLaurin Law reviews your policy to confirm the correct valuation standard and fights to ensure you receive it.

Question 4

Can I file a bad faith claim against my commercial property insurer in Texas?

Accepted Answer

Yes. Under the Texas Insurance Code (Chapters 541 and 542) and the Texas Deceptive Trade Practices Act, business owners can pursue bad faith claims against insurers who unreasonably delay, underpay, or wrongfully deny commercial property claims. Remedies include the full policy benefits owed; 18% annual interest on amounts delayed beyond statutory deadlines; attorney's fees and court costs; and in cases involving knowing violations of the Insurance Code, up to three times the amount of actual damages.

Question 5

Does commercial property insurance cover storm and hurricane damage in Houston?

Accepted Answer

Most commercial property policies cover wind and hail damage from storms and hurricanes, but this depends on your specific policy language. Many Texas commercial policies carry separate windstorm or hurricane deductibles substantially higher than standard deductibles, sometimes calculated as a percentage of the insured value. Flood damage is typically not covered by standard commercial property policies and requires separate flood insurance. After a storm, insurers also frequently attribute damage to pre-existing conditions, a common tactic McLaurin Law is experienced in countering.

Question 6

What is the insurance appraisal process for commercial property disputes?

Accepted Answer

Many Texas commercial property policies contain an appraisal clause allowing disputes over the amount of a loss (not coverage) to be resolved through a structured process without court litigation. Both parties select a disinterested appraiser; those appraisers then select an umpire. A written award agreed upon by any two of the three is binding as to the amount of the loss. Having an attorney manage the appraisal, especially one who understands how insurers select their appraisers, can significantly affect the outcome.

Question 7

How long do I have to file a lawsuit against my commercial property insurer in Texas?

Accepted Answer

The general statute of limitations for breach of contract against a Texas insurer is four years from the date of breach. However, many commercial property policies contain shorter contractual limitations periods, sometimes as short as one or two years, which Texas courts have generally upheld. Do not wait. Contact McLaurin Law as soon as possible after any denial or disputed underpayment.

Question 8

What types of Houston businesses does McLaurin Law represent in commercial property disputes?

Accepted Answer

McLaurin Law represents owners of restaurants, retail stores, office buildings, warehouses, industrial facilities, hotels, apartment complexes, mixed-use developments, medical offices, strip centers, and other commercial properties throughout the Houston metropolitan area and across Texas. Commercial clients are represented on a contingency fee basis, meaning we are paid only if we recover compensation.

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