DALLAS, TX – Imagine this: A hailstorm tears through Dallas, ripping shingles off your roof. You file a claim. Your insurer sends an adjuster who offers $8,000. Your contractor says repairs will cost $35,000. You hire a public adjuster who works for months gathering evidence. You submit the claim to appraisal, where an independent panel agrees you're owed $32,000.
Victory, right?
Wrong. Your insurer files a motion to dismiss. The court agrees. You get nothing—not because your claim wasn't valid, but because you missed a deadline you didn't know existed.
This nightmare scenario plays out across Texas every year, and the statistics are sobering: Nearly half of all Texas home insurance claims in 2024 were closed with no payment to the homeowner. For Dallas-area property owners, the two-year statute of limitations is a ticking time bomb that destroys valid claims when they don't understand how it works.
Let's break down what every Dallas property owner needs to know about Texas's strict deadline—and how to protect your rights before time runs out.
Texas's Two-Year Deadline: What It Is and When It Starts
Texas Civil Practice and Remedies Code § 16.003 sets a two-year statute of limitations for property damage claims. This means you have two years from the date your claim "accrues" to file a lawsuit against your insurance company if they won't pay.
Sounds straightforward, except for one critical detail: when does the clock start?
Most people assume the clock starts when:
- The damage occurs
- They file the claim
- The insurance company finishes investigating
The actual rule: The clock starts when the insurance company first denies or underpays your claim.
This distinction destroys claims every single day.
Real-World Example: The Appraisal Trap
In a recent case highlighted by Green Trial Law, a Texas policyholder filed a hail damage claim in April 2023. The insurer responded quickly with a low-ball estimate in May 2023. The homeowner hired a public adjuster who fought hard, eventually submitting the dispute to appraisal—a process where both sides hire independent appraisers to determine the actual damage.
The appraisal panel issued a favorable award. The homeowner thought they'd won.
But there was a massive problem: the statute of limitations began running in May 2023 when the insurer first underpaid the claim. The appraisal process took months, during which the two-year deadline passed. The homeowner never filed a lawsuit within the two-year window.
Result: The claim was dismissed. The homeowner received nothing, despite winning the appraisal.
Why appraisal doesn't stop the clock: In Poole v. State Farm Lloyds (June 30, 2025), a Texas court reaffirmed that "use of the appraisal process to resolve a dispute has no bearing on any deadlines or enforcing any missed deadlines … The [insurance company's] agreement to participate in appraisal did not extend limitations."
While everyone focused on the appraisal, the limitations deadline silently expired. Game over.
Three Critical Scenarios Where Dallas Property Owners Lose
Scenario 1: The Endless Investigation Loop
What happens: Your roof is damaged in a Dallas windstorm. You file a claim. The adjuster comes out, takes photos, and says they need to investigate further. Weeks pass. You call. They say they're still investigating. Months pass. Finally, 18 months after you filed, they deny the claim, saying the damage was "pre-existing."
The trap: You now have only six months left to file a lawsuit—but you probably think you still have two years from the denial date. Wrong. If the insurer's original estimate (the one issued months ago) already underpaid your claim, the clock started back then.
The defense: Texas law requires insurers to acknowledge claims within 15 days and approve or deny within 30 days after receiving all necessary documentation (Texas Insurance Code § 542). If they drag their feet, document every delay. But don't wait for them to act—consult an attorney immediately if they're stalling.
Scenario 2: The Partial Payment Problem
What happens: Your Dallas commercial building suffers $500,000 in storm damage. The insurer pays $200,000, saying that's all the damage they can confirm. You accept the payment to start repairs. Two years later, you discover additional hidden damage and file a supplemental claim. The insurer denies it, citing the statute of limitations.
The trap: By accepting the partial payment without reserving your rights to additional amounts, you may have inadvertently started the two-year clock. Even if you didn't realize the full extent of damage, limitations began running.
The defense: Never accept a settlement payment without:
- A written statement that you reserve rights to additional amounts if more damage is discovered
- Documentation from engineers/contractors that hidden damage may exist
- Legal advice on whether accepting the payment triggers limitations
Scenario 3: The Insurance Policy's Hidden One-Year Deadline
What happens: You file a claim under your homeowner's policy. The insurer denies it. You think you have two years to sue. But buried in your policy's fine print is a clause requiring lawsuits within one year of the denial.
The trap: Many policies contain "contractual limitations" periods shorter than the two-year statutory deadline. These clauses are generally enforceable—meaning even though state law gives you two years, your contract with the insurer gives you only one.
The defense: Read your policy immediately after filing a claim. Look for sections titled "Legal Action Against Us" or "Suit Against Us." These often specify lawsuit deadlines. If your policy has a one-year deadline, you must sue within that timeframe—not two years.
Example: One policy reviewed by Grisham Kendall Law states: "No action can be brought unless the policy provisions have been complied with and the action is started within one year after the date of loss."
If you wait 18 months to sue, you lose—even though the statute of limitations hasn't expired.
Four Actions Dallas Property Owners Must Take Immediately
Action 1: Mark Your Calendar the Day You File a Claim
Don't wait to see if the insurer pays fairly. The moment you file a claim:
- Document the date
- Set a reminder for 18 months from filing
- Set a second reminder for 21 months from filing
- Set a final reminder for 23 months from filing
These reminders force you to evaluate your claim's status with enough time to act if the insurer is lowballing or delaying.
Action 2: Understand When Your Clock Starts
The clock starts when the insurance company first denies or underpays your claim—not when they finally issue a formal denial letter months later.
Ask your attorney to identify the "accrual date": This is the date your limitations period began. Don't guess. An experienced insurance attorney can review your claim file and identify exactly when the clock started ticking.
Common accrual dates:
- The date the adjuster's initial estimate was issued (if it underpaid)
- The date the insurer sent a denial letter
- The date the insurer paid less than you requested without explaining why
Action 3: Don't Let "Alternative Dispute Resolution" Kill Your Claim
Appraisal, mediation, and arbitration can take months or years. During this time, limitations keeps running. You can't pause it.
The strategy: File a "protective lawsuit" before limitations expires, even while pursuing appraisal or mediation. This preserves your rights. The lawsuit can be stayed (paused) while the alternative dispute process continues, but you've beaten the deadline.
Recent case law: Poole v. State Farm Lloyds (June 2025) made clear that insurers can—and will—raise limitations defenses even when they agreed to participate in appraisal. Protect yourself by filing suit before the deadline.
Action 4: Hire an Attorney Early—Not After It's Too Late
Most Dallas property owners contact attorneys only after their claim has been denied or underpaid for months. By then, they may have only weeks left before limitations expires.
Better approach: Consult an attorney within 30 days of filing a claim if:
- The insurer is requesting unusual amounts of documentation
- The adjuster's estimate seems far lower than contractor estimates
- The insurer is delaying without explanation
- You're in a high-dollar claim situation (commercial property, large residential loss)
Why it matters: An attorney can:
- Identify when limitations started
- Calculate your deadline
- File a protective lawsuit if needed
- Negotiate from a position of strength (insurers know you're serious if you have counsel)
- Demand the 18% penalty interest Texas law requires for delayed payments
The Prompt Payment Act: Your Most Powerful Weapon
Texas Insurance Code § 542 (the Prompt Payment of Claims Act) gives policyholders powerful tools:
Deadlines insurers must meet:
- 15 days to acknowledge your claim and request necessary information
- 30 days to approve or deny after receiving all requested documentation
- 5 days to issue payment after approval
Penalties for missing deadlines:
- 18% annual penalty interest on unpaid claim amounts
- Attorney fees if you sue and win
Example: Your $100,000 claim sits unpaid for six months beyond the statutory deadline. The insurer eventually pays after you sue. In addition to the $100,000, they owe roughly $9,000 in penalty interest, plus your attorney fees.
This penalty interest can add up fast—and it's why insurers fear the Prompt Payment Act. Use it.
How to enforce it:
- Document every date: claim filed, information requested, information provided, deadline for response
- Send a formal demand letter citing Chapter 542 when deadlines pass
- Calculate penalty interest you're owed
- File suit if the insurer doesn't comply
Many insurers settle quickly once they realize you're serious about enforcing the statute—because the 18% penalty interest and attorney fees make delaying more expensive than paying.
What If You've Already Missed the Deadline?
If you missed the two-year deadline, your options are limited but not always zero:
Possible exceptions:
- Discovery rule: In rare cases, if you couldn't have reasonably discovered the damage or underpayment until later, the clock may start from the discovery date (not the damage date). This is a high bar to meet.
- Fraudulent concealment: If the insurer actively misled you about coverage or hid evidence, limitations may be tolled (paused) during the period of concealment.
- Tolling agreements: If you and the insurer signed an agreement to extend the limitations period while negotiating, that may save your claim.
Reality check: These exceptions are difficult to prove and rarely succeed. Don't count on them. The better strategy is never to let limitations expire in the first place.
Next Steps: Protecting Your Dallas Property Claim
The two-year statute of limitations is a trap that catches even sophisticated property owners. But it doesn't have to catch you.
Your action plan:
- Today: Read your insurance policy to find any contractual limitations periods
- When damage occurs: Document the date and set calendar reminders for 18, 21, and 23 months out
- When you file a claim: Note the date the insurer first responds with an amount (this may be your accrual date)
- Within 30 days of underpayment/denial: Consult an insurance attorney
- Before 22 months pass: File a protective lawsuit if the claim isn't resolved
Don't let the clock run out on a valid claim. Texas's statute of limitations is unforgiving—miss it by one day, and even the strongest claim becomes worthless.
Work with insurance professionals who understand Texas's unique deadlines. And if your insurer is delaying, lowballing, or playing games, enforce your rights under the Prompt Payment Act before time runs out.
Source: Texas Insurance Code, Green Trial Law, JCE Law Group, Grisham Kendall Law