Insurance companies operating in Texas closed almost half the claims filed by homeowners last year without paying anything, part of a rising trend that is shifting more costs onto property owners, according to a new analysis.
According to Weiss Ratings, reports show a rising trend in denied insurance claims in Texas, with about 47% insurance claims closed without payment, also an increase from 35% in 2016. This figure surpasses the national average of 42%.
Experts attribute this alarming surge to several key factors:
Insurers have steadily increased deductibles, often pushing the out-of-pocket cost so high that minor claims simply go unpaid. In coastal Texas, wind damage deductibles of 2–3% of home value are now common—translating to nearly $9,000 on a $300,000 home .
More policies are excluding specific perils like wind or hail—reducing insurer liability, but leaving homeowners exposed
Many homeowners don’t dispute claim denials due to time, complexity, or lack of resources.
Industry responses often point to high deductibles or policy grouping—such as associating renter claims with homeowners—in explaining these statistics
In 2017, Texas passed HB 1774, which decreased penalties for insurers who wrongfully denied claims. Homeowners are now less likely to challenge insurance claims due to the emboldening of insurers
We don’t get paid unless you do.If your insurance claim has been denied, delayed, or underpaid, the Chad T. Wilson Law Firm is here to help. We specialize in assisting policyholders in their fight against insurance companies that fail to honor their contracts. Contact us today for a free case evaluation; we only get paid if you do.
