By Eric Dick

Dick Law Firm, PLLC

By Eric Dick / Dick Law Firm, PLLC

Houston does not get many hard freezes, which is exactly why so many of us are caught off guard when one comes. Winter Storm Uri in February 2021 caused more than $8 billion in insured losses in Texas, and Texans filed more than 450,000 insurance claims, according to the Texas Department of Insurance. A lot of that damage came from water pouring out of broken pipes.

Before the first cold snap of this season, it is worth spending ten minutes on two questions: what your policy actually covers, and what you need to do so a covered claim stays covered.

What is usually covered, and the catch

TDI says most homeowners policies cover water damage from leaks and broken pipes, but there are exceptions, and you should read your own policy. Flood insurance does not pay for burst pipes. If you rent, your landlord’s policy will not pay for your furniture, clothes or electronics; that takes your own renters policy.

The catch is a “reasonable care” condition. Some policies cover freeze damage only if you took reasonable steps to keep the heat on, or to shut off the water and drain the pipes. TDI warns that a home or renters policy might not pay for frozen-pipe damage if you did not take steps to protect your pipes. After Uri, TDI told insurers that whether a policyholder acted reasonably must be judged on the facts of each claim, and it urged them to consider things people could not control, like long power outages (TDI Bulletin B-0010-21). That guidance was about the 2021 storm. Do not count on it for the next one.

Before a freeze

TDI’s winter checklist is short:

• Wrap pipes in unheated areas, like the pipes serving a washer in the garage.
• Disconnect hoses, wrap outdoor pipes, and drain and turn off your sprinkler system.
• If you leave home before a freeze, turn off the water at the main shutoff valve and leave the heat on.
• During the freeze, open cabinet doors under sinks and let hot and cold faucets drip, following any water-use limits from your city.

Find your main shutoff valve now, while it is dry and daylight. It is much harder to find with water coming through the ceiling.

If a pipe breaks

Turn off the water at the main. Move valuables off the floor. TDI notes that an insurer may deny a claim if you do not protect your property from further damage. Take photos and video, and ask your insurer before you throw away the broken pipe or damaged materials. Keep every receipt for drying, temporary repairs and any hotel stay if covered damage forces you out of your home. Make only the repairs needed to stop more damage until the adjuster has seen it. Report the claim as soon as you can, and follow up in writing (email or the insurer’s app or portal) so you have a dated record. Write down the date, the name of each person you speak with and what they told you.

The clock your insurer is on

Texas law sets deadlines for insurers, too. Under Chapter 542 of the Texas Insurance Code, an insurer generally has 15 days after it receives notice of a claim to acknowledge it, start its investigation and ask for what it needs from you. It then generally has 15 business days after it receives everything it asked for to accept or reject the claim in writing, and a rejection must state the reasons. If it needs more time, it must tell you why, and it then has up to 45 days from that notice to decide. Once it agrees to pay, payment is generally due within five business days. Surplus lines insurers get longer deadlines for some of these steps, and after a weather-related catastrophe or major natural disaster, as the insurance commissioner defines those terms, these deadlines are extended by 15 days.

Knowing those dates helps you ask the right question at the right time: “What do you still need from me, and when will I have a decision?”

If your claim stalls, you can ask for a claims manager, call the Office of Public Insurance Counsel at 1-877-611-6742, or file a complaint through TDI’s Consumer Help Line at 1-800-252-3439.

A freeze is a few days on the calendar. A badly documented claim can drag on for months. Ten minutes of preparation now is the cheapest insurance you will buy this winter.

Eric Dick is a Houston insurance attorney and the owner of Dick Law Firm, PLLC. This article is general information, not legal advice about any particular claim.