When the Might 2025 Houston derecho ripped by way of Texas with winds exceeding 100 mph, it induced an estimated $5–7 billion in damages. Industrial property homeowners throughout Harris County and past have been left with shattered home windows, collapsed roofing, and weeks of enterprise interruption.
However for a lot of, the true storm hit afterward—when insurers started dragging their ft on paying legitimate claims. Delays, lowball provides, and countless investigations have left companies struggling to rebuild.
That’s the place the Texas Immediate Fee of Claims Act (TPPCA) is available in. This legislation offers policyholders highly effective instruments to combat again when insurers stall—and in 2025, it’s extra necessary than ever.
Why the TPPCA Issues in 2025
The TPPCA (Texas Insurance coverage Code Chapter 542) was designed to carry insurers accountable by setting strict deadlines for declare dealing with:
● 15 days to acknowledge and request details about a declare
● 30 days to approve or deny after receiving all obligatory documentation
● 5 days to concern cost after approval
If insurers miss these deadlines, they face penalties of 18% annual curiosity on unpaid quantities plus legal professional charges.
And the necessity is evident. In response to Texas Division of Insurance coverage knowledge from July 2025, complaints about delayed storm-related claims have surged, notably after the Houston derecho. For business property homeowners—from buying facilities to high-rise workplaces—these delays can imply crippling monetary pressure.
How Insurers Exploit Delays
Regardless of TPPCA deadlines, insurers usually use acquainted ways to keep away from or postpone full payouts:
● Extended Investigations
Sending a number of adjusters to “re-check” damages, usually reclassifying storm losses as pre-existing put on and tear.
● Causation Disputes
Arguing that injury was attributable to excluded perils reminiscent of flooding, even when proof clearly ties losses to windstorm occasions.
● Lowball Settlements
Providing partial funds far beneath precise restore and enterprise interruption prices to stress property homeowners into settling cheaply.
Profitable with the TPPCA
Industrial property homeowners don’t have to simply accept delays or excuses. Right here’s tips on how to leverage the TPPCA to your benefit:
1. Doc Each Step
Maintain meticulous information of all insurer communications—emails, letters, cellphone logs. These create a paper path to show delay violations.
2. Construct a Strong Declare File
Use photographs, movies, contractor estimates, and unbiased adjuster experiences to strengthen your case towards lowball provides or causation disputes.
3. Work with a Policyholder Lawyer
On the Voss Legislation Agency, we’ve pressured insurers to pay thousands and thousands in storm claims by implementing TPPCA penalties. By holding carriers accountable, we flip delays intoleverage for higher settlements.
Actual-World Influence: The Houston Derecho
The derecho’s impression was akin to Hurricane Ike, and insurers have responded with the usual ways—stalling, disputing, and underpaying.
In a single current case, our agency represented a downtown Houston workplace constructing proprietor whose insurer delayed cost for six months. By documenting the violations and invoking TPPCA penalties, we secured a $4.2 million restoration, masking full repairs plus extra compensation for the delay.
The 2025 Outlook
Texas storms are rising extra intense, and insurers are underneath mounting stress to regulate payouts. Sadly, delays have develop into a go-to technique.
The excellent news? The TPPCA offers policyholders the higher hand—if you know the way to make use of it. With the best proof and skilled authorized assist, you possibly can maintain insurers accountable and get better the compensation your coverage guarantees.
Don’t let delays jeopardize your property or enterprise operations. Contact The Voss Legislation Agency immediately for a free session, and allow us to allow you to implement your rights underneath the TPPCA.
