Since September 1, 2017, a policyholder who wants to sue over a hail, wind, hurricane or other forces-of-nature claim in Texas must first send a specific written notice and wait 61 days. Get it wrong and the suit can be abated and attorney’s fees reduced or lost.
Which claims need a 542A notice
Chapter 542A applies to actions on first-party claims under policies covering real property or improvements, for damage caused “wholly or partly, by forces of nature” — earthquake or tremor, wildfire, flood, tornado, lightning, hurricane, hail, wind, snowstorm, rainstorm (§542A.001). It covers breach-of-contract, negligence, misrepresentation and fraud claims, Insurance Code Chapter 541 and 542 claims and DTPA claims (§542A.002(a)). It doesn’t apply to the Texas Windstorm Insurance Association (§542A.002(b)).
What the notice must say (§542A.003)
- A statement of the acts or omissions giving rise to the claim.
- The specific amount alleged to be owed by the insurer on the claim for damage to or loss of covered property.
- The reasonable and necessary attorney’s fees incurred, calculated from hours actually worked (per contemporaneous time records) times a customary hourly rate.
It must be given in writing at least 61 days before suit. If an attorney or representative gives it, they must send the claimant a copy and say so in the notice. It can be combined with other required notices, and it is admissible in evidence.
No notice is required if there’s a reasonable basis to believe limitations will expire before notice could be given, or the claim is a counterclaim (§542A.003(d)).
The insurer’s inspection (§542A.004)
Within 30 days of receiving the notice, the insurer may ask in writing to inspect, photograph or evaluate the property. If reasonably possible, the inspection must be completed within 60 days of when it received the notice.
Abatement (§542A.005)
If the insurer didn’t get a compliant notice, or asked to inspect and wasn’t given a reasonable opportunity, it can file a plea in abatement within 30 days of answering. A verified plea that isn’t controverted by affidavit abates the case automatically on the 11th day. Abatement lasts until the 60th day after a compliant notice is served or the inspection is allowed.
The attorney-fee formula (§542A.007)
Fees are limited to the least of (1) the fees proved at trial, (2) fees allowed under other law, or (3) the fees multiplied by a ratio: amount awarded on the claim ÷ amount demanded in the notice.
- Ratio 0.8 or higher: full fees (if otherwise recoverable).
- Ratio below 0.2: no fees.
- In between: fees scaled by the ratio.
- No proper notice at least 61 days before suit, pleaded and proved by the insurer: no fees incurred after that plea.
Try the formula in the 542A notice & fee calculator.
In Rodriguez v. Safeco (Tex. 2024), the Supreme Court held that when an insurer pays the appraisal award plus any statutory interest that could be owed, the amount “awarded in the judgment” on the claim is zero, so §542A.007 permits no fees. The 542A notice and the appraisal clause now interact closely.
Interest under 542A cases
In an action governed by Chapter 542A, prompt-payment interest is the floating rate in §542.060(c): the §304.003 rate on the date of judgment plus 5% — 12.00% using November 2026’s 7.00%. It applies to claims made on or after September 1, 2017.
The 542A notice is a legal document with consequences for fees and timing. Enforce Interest is not a law firm; we prepare the claim documentation and interest calculations that support it, and a Texas attorney should draft and send it.
Frequently asked questions
How many days before suing must a 542A notice be sent?
At least 61 days (§542A.003(a)).
What happens if I don’t send a 542A notice?
The insurer can abate the suit until 60 days after a compliant notice, and may cut off attorney’s fees incurred after it pleads the missing notice (§§542A.005, 542A.007(d)).
Does 542A apply to TWIA claims?
No (§542A.002(b)). TWIA claims follow Chapter 2210.