Texas claims · The check and the limit are different
A homeowners check that feels short is often the deductible, depreciation, or a limit you did not carry. It is not automatically a refusal to pay a covered loss. This page will not quote a prompt-payment deadline.
Start with the declarations that were in force on the date of loss. Actual cash value is replacement cost minus depreciation. Recoverable depreciation, when the form has it, is released after you turn in repair invoices. It is not a denial. TDI’s roof example is a $10,000 replacement, a $2,000 deductible, and $8,000 paid when the basis is replacement cost. A percentage hail deductible is a percent of Coverage A, not of the invoice. Two percent of $450,000 is $9,000. That is an example, and it comes off once per occurrence. Many HO-3 forms pay replacement cost on the dwelling only if you insured it to about 80 percent of rebuild cost. Example: rebuild $400,000, 80 percent is $320,000, you carry $240,000, and an $80,000 repair pays $60,000 before the deductible. Forms differ. That is a policy condition, not the state splitting the bill.
The contract: Texas homeowners, what it covers, and coverage. A storm file: a roof claim is not a promised new roof. What the department can and cannot do: TDI. The product page: Texas homeowners insurance.
