Water claims: sudden versus gradual
Most homeowners policies cover sudden and accidental discharge of water from plumbing, appliances or HVAC systems, and exclude damage from continuous or repeated seepage or leakage over time (often 14 days or more, depending on the form). Nearly every water-claim dispute turns on which side of that line the loss falls. Plumber invoices identifying the failed part, moisture mapping and photos of the failure point are the core evidence.
The rate on water claims
A burst supply line, failed water heater or leaking dishwasher is not a force of nature, so late payment carries the standard 18% under §542.060(a). Water that enters from a storm — wind-driven rain through a damaged roof, or a rainstorm — is weather-related and falls under Chapter 542A and the floating rate (12.00%) for claims made on or after September 1, 2017.
Where water claims stall
- “Long-term seepage” denials on what was a sudden failure.
- Mitigation versus repair. Drying is paid; tear-out, rebuild and cabinets are disputed.
- Mold. Many Texas policies limit or exclude mold, but mold resulting from a covered water loss is often covered up to a sublimit. Testing can stretch a claim for months while the statutory clock keeps running.
- Cause-of-loss letters asking you to procure reports the insurer is responsible for obtaining.
- Hidden damage found behind walls or under floors and labeled a “new claim.”
Freeze damage
Burst pipes from a hard freeze — as in February 2021 — are usually covered as sudden and accidental discharge, but many policies exclude freeze damage to plumbing in a vacant or unheated home unless you used reasonable care to maintain heat or shut off and drain the water. Freeze claims made during a declared winter-storm catastrophe get the 15-day extension in §542.059(b). Whether a freeze loss is a “force of nature” claim under Chapter 542A is not spelled out in the statute’s list (which names snowstorms but not freezes); it can affect the rate and the pre-suit notice. Read how long you have to file a freeze claim in Texas.
Texas water claims and your claims history
Texas limits how insurers can use some water-damage history. Insurers can’t use a prior appliance-related water claim to rate, renew or cancel a policy if the damage was properly remediated and the remediation was inspected and certified (§544.353, with exceptions for three or more such claims in three years), and claims caused by natural causes don’t count toward the three-claims nonrenewal rule (§551.107). Don’t let fear of a nonrenewal keep you from reporting a legitimate loss — and don’t delay reporting; late notice is a common defense.
What to do in the first week
- Stop the water and photograph the source before repair.
- Keep the failed part.
- Hire mitigation and keep its moisture logs.
- Report the claim in writing.
- Log every request and response in the claim timeline builder.