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Delayed Insurance Claim Payment Attorney in Houston

Did You Know Insurance Companies Are Required to Make Timely Payments By Law...

If you are entitled to money from an insurance claim, you should expect to receive the money as soon as possible.

The Texas Prompt Payment Act of 2003 was created to remove the possibility of late payments or underpayments that do not reflect the full amount that you deserve and is now written into the Texas Insurance Code and Texas Consumer Bill of Rights. These laws mandate that all insurers must be reasonable when deciding a claim and also diligent to pay out claims within 60 days of receiving all requested items, forms, and statements. This law firm makes insurance companies uphold their legal responsibilities and can make your insurer pay your insurance attorney's fees, cover the full value of the insurance claim and pay set penalties if you decide to hire us.

Every claim is different, but insurers are required to be consistent when it to comes to their job. If you have filed a claim and received an amount of compensation, then you deserve to have that money as soon as possible. If you do not receive your payment, then the insurer may need to pay penalty interest to you and also cover your attorney's fees. The Texas Insurance Law also states that if an insurer denies a claim and later an attorney can prove that that denial was invalid, then the insurer may be still held liable for an overdue payment.

If your case has been delayed in any way, our attorneys help homeowners and businesses take a stand. Call us now at 832.945.1900.

Texas Law Penalizes Insurance Companies for Underpayment & Late Payments to Customers

Reports of insurance claims adjusters being late to investigate and issue payments for Houston, Texas freeze claims have began to surface and insurance companies have especially been treating minority homeowners the worse . You may be entitled to additional payments and attorney fees if you are the victim of insurance company violations. For example, those who underpay within 45 days of the claim payment deadline or those who pay up to 45 days after a payment deadline are susceptible to a $100,000 fine or 50% of the difference between the billed and contracted rate of the payment. Those who do not correct the mistake until 46 to 91 days later may need to pay up to $200,000 or 100% of the difference. Those who do not make a correct payment until 91 to 270 days of the deadline of the payment can result in a $200,000 fine or 100% of the difference between the billed and contracted rate. In addition to this, the insurance company is required to pay 18% interest on the amount that was delayed from the date that the payment was due. This can add up, and you may be able to receive a significant amount of extra finances as a result. Your claims should be paid within 45 days if it was submitted in a non-electronic format and 30 days if it was submitted in an electronic format. Insurers who want to audit a claim are still required to pay it in full while the audit takes place. There are rare circumstances when an insurer can obtain an extension of deadlines, but these cases are not common.

Texas Prompt Payment Act FAQ


The Texas Prompt Payment Act of 2003 requires insurance companies pay out claims within 60 days of receiving the forms, statements, and anything else required for a claim. The law also provides penalties for companies that provide an on-time payment that is lower than it should be.


Depending on how late a company is, they have to pay a fine and a percentage difference between what they paid and what they were supposed to pay. For example, a company that's between 46 and 91 days late may have to pay a $200,000 fine and 100% of the difference. Additionally, insurance companies must pay 18% interest for late payments.


Insurance companies are required to pay a claimant in a timely manner. If they fail to do so, they are acting in bad faith and are possibly breaking the law. Contact an insurance claims lawyer from Arnold & Itkin can help you determine what options are available to you.

Learn More About the Texas Prompt Payment Act & Your Rights

If you are dealing with insurance claim issues regarding tardiness or underpayment, then you want an attorney on your side. You should not worry about the costs of hiring an insurance claim attorney, as the expenses may be covered by the insurance company after they are found guilty of the offenses of underpayment or late payment. Insurance companies that delay or deny payments can undoubtedly be held liable for their offenses and will have to pay penalty interest and attorney's fees if the court deems it necessary. You will want to determine whether or not the Prompt Payment Act has weight in your case by discussing this with an attorney. If you filed a commercial property claim, fire claim, business interruption claims, or another sort of claim regarding insurance, there is a possibility you will need to litigate if an insurance company wrongs you.

To learn more about how you can protect your legal rights, get in touch with our firm today. Call 832.945.1900 or contact us online to schedule your free consultation.

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Cedrick D Forrest Law is committed to answering your questions about insurance and personal injury matters in Houston.

We offer a free consultation, including video consults, where we'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.