Texas law establishes specific protections for residential property insurance policyholders. Most are not aware of them until a claim has already gone sideways.
Around 2022, a practice emerged in which some insurers offered policyholders a reduction in their monthly premium in exchange for agreeing not to hire a public adjuster in the event of a claim. The logic of that offer is worth sitting with: carriers were willing to accept less revenue just to limit who could represent you later.
The Texas Legislature responded. Texas Insurance Code §4102.007(b) now expressly prohibits insurers from offering any inducement — premium reductions, credits, or any other form of consideration — as part of an arrangement to waive your right to PA representation. If your current policy contains such a provision, it is not enforceable.
⚖ Tex. Ins. Code §4102.007(b)If your insurer requests an Examination Under Oath, the carrier has identified something about your claim that gives it pause about coverage. A reservation of rights letter will typically accompany the request.
An EUO is a formal sworn proceeding. Your policy’s cooperation clause requires you to participate — but it does not require you to do so without legal representation. Do not respond to an EUO request without first consulting an attorney.
Assignment of Benefits is an arrangement in which a policyholder signs their insurance proceeds over to a contractor, who then negotiates directly with the insurer. Texas has prohibited AOB due to widespread abuses in other markets.
Any contractor who presents you with an AOB agreement in Texas is presenting a document that is not legally enforceable. If this happens, contact us or consult an attorney before signing anything.
If you believe your insurer has violated its statutory obligations — missed deadlines, improperly denied a claim, or acted in bad faith — you have the right to file a complaint with the Texas Department of Insurance.
Regulatory complaints and civil remedies under the Texas Insurance Code are separate and not mutually exclusive. An attorney who practices insurance law can advise you on which approach, or what combination, is appropriate for your circumstances.
There is no charge for the initial claim review or the on-site visit. If your loss isn’t something we can help with, we’ll tell you that directly — and offer what guidance we can.