Why do insurance companies deny or delay your claim?

Filing an insurance claim can be stressful after an accident or property damage. You count on your policy to cover the costs, but the process doesn’t always go as planned. Instead of quick help, you might face long delays or a denied claim.

Knowing why this happens and what Texas law says can help you avoid mistakes and protect yourself.

Common reasons for claim denials

Many Texans are surprised when their claims get denied for reasons unrelated to the actual loss. Most denials come from simple errors or confusion about what a policy covers. These include:

• Missing or incorrect information: Even small mistakes—such as an inaccurate date or missing signature—can cause a rejection. Always review every form before submitting it.
• Lack of coverage: Many people think their policy covers everything. In reality, most policies have limits and exclusions. For example, a basic homeowner’s policy often excludes flood damage. Read your policy so you know what it truly covers.

These denials can feel frustrating and unfair. But careful preparation and accurate paperwork can help you avoid most issues.

Why insurers delay payments: know the deadlines

Sometimes your claim isn’t denied—it’s just delayed. Insurers can investigate, but they can’t take forever.

Texas law sets strict deadlines. After you file a claim, insurers have 15 days to acknowledge it, start investigating, and request any needed documents. Once they have all your information, they have 15 business days to accept or deny your claim in writing.

If they miss these deadlines without a valid reason, they may be acting in bad faith.

What to do if your claim is unfairly denied or delayed

You can prevent problems by checking your forms, keeping good records, and replying quickly to insurer requests.

If your claim takes too long or you believe the insurance company denied it unfairly, you still have options. You don’t have to stop at an internal appeal.

Ask the insurer for a written explanation of their decision. If they break deadlines or deny your claim without a fair reason, you can file a lawsuit. This may include claims for breach of contract or bad faith under the Texas Insurance Code.

When you know your rights and stay organized, you can protect yourself. A clear understanding of the process helps you get the coverage you deserve.