What to do when your insurer refuses to update you or threatens to close your claim (Texas)

Quick answer: Document everything, demand a written status and timeline, file a complaint with the Texas Department of Insurance (TDI) if the insurer will not cooperate, and consider talking to an attorney if the company’s conduct appears unfair or if you may lose important rights. This article explains your options under Texas law and steps to protect your claim.

Detailed answer — your rights and practical steps under Texas law

Under Texas law, insurers handling first-party property and casualty claims must follow rules about prompt acknowledgement, investigation, and payment. If an insurer refuses to update you or threatens to close your claim, take action right away to preserve your rights.

Relevant Texas law and agency resources

• Texas Insurance Code, Chapter 542 (Prompt Payment of Claims) — sets timing obligations for insurers on many first-party property/casualty claims. See: Texas Ins. Code Ch. 542.
• Texas Insurance Code, Chapter 541 (Unfair Methods, Unfair or Deceptive Acts or Practices) — prohibits unfair settlement practices and misrepresentations by insurers. See: Texas Ins. Code Ch. 541.
• Texas Department of Insurance (TDI) — the state agency that takes consumer complaints, investigates insurer conduct, and can take administrative action. File a complaint or learn how at TDI: TDI Consumer Complaint.
• Statute of limitations for many contract-based insurance claims — generally governed by the Texas Civil Practice & Remedies Code; many contract claims must be brought within four years. See: Tex. Civ. Prac. & Rem. Code Ch. 16. Consult an attorney about deadlines that apply to your claim.

What the law generally requires

For many property/casualty claims, Texas law requires insurers to act promptly: acknowledge receipt, request necessary information, and accept or deny a claim within specified timeframes once they have required proof of loss. In addition, Chapter 541 forbids misleading or deceptive practices, including incorrectly telling you that the claim will be closed without proper basis.

Immediate steps to take (checklist)

1. Document everything now. Write down dates, times, names of representatives, what they said, and any promises. Keep emails, texts, claim numbers, photos, estimates, and receipts.
2. Send a written status request. Ask for a written explanation of the claim status, what information they still need, and a clear timeline for next steps. Send by email and certified mail with return receipt when possible.
3. Ask them not to close the claim without telling you in writing. If they threaten to close the claim, demand written notice of intent to close and request the reason and a reasonable period to respond.
4. Preserve proof of loss and cooperation. Promptly supply any reasonable documentation requested and keep copies. Do not miss deadlines the insurer sets for submitting materials.
5. File a complaint with TDI if needed. If the insurer ignores requests, misrepresents facts, or threatens unreasonable closure, file a complaint with the Texas Department of Insurance and include supporting documents: TDI complaint page.
6. Consider an attorney when appropriate. If the insurer’s conduct appears unfair or you face loss of important rights (for example, impending limitations deadlines or policy cancellation), talk to a Texas-licensed attorney about potential statutory claims under Chapters 541 and 542 and other remedies.

How to write a clear status request (sample wording)

You can keep this short and factual. Send it by email and certified mail:

Claim number: [your claim number]. Date of loss: [date].
Please provide a written status update for this claim, identify any documents you require from me, and provide a firm timeline for your investigation and decision. Do not close this claim without providing written notice stating the reason and an opportunity to respond. Thank you.

When to file a TDI complaint

File with TDI if an insurer fails to acknowledge or respond, makes false statements about your coverage or claim status, refuses reasonable requests for information, or threatens to close without a valid reason. TDI can investigate administrative violations of the Insurance Code and often helps resolve consumer disputes. File here: TDI Consumer Complaint Form.

When you should consult an attorney

Talk to an attorney if any of the following apply:

• The insurer refuses to pay a valid claim and you have provided required proof.
• The company’s behavior looks like bad faith (misrepresentations, failure to investigate, unreasonable delay).
• There is a threat that the claim will be closed and doing so would cause you to miss a statute of limitations or other legal deadline.
• You need help preserving rights, preparing a demand letter, or pursuing a lawsuit for breach of contract, statutory violations, or bad faith remedies.

Possible legal claims and remedies

If an insurer violates the Insurance Code (Chapter 541 or 542) or breaches the policy, remedies in Texas may include contract damages, statutory penalties, attorney’s fees, and in some cases extra-contractual damages for certain improper practices. Exact remedies depend on the facts and the law that applies; an attorney can evaluate your case.

Helpful Hints

• Keep a single, organized file (digital or physical) for every document and communication related to the claim.
• Ask for claim status in writing every time and request the name and phone number of the adjuster handling your file.
• Set calendar reminders for any deadlines the insurer gives you or that may affect your legal rights (e.g., evidence deadlines or limitation periods).
• Use certified mail for important letters—return receipts provide proof the insurer received your request.
• If the insurer says it will close the file, ask for the closing letter in writing and keep it; you may need it when filing a complaint or lawsuit.
• Filing a timely complaint with TDI can prompt the insurer to act and creates an official record of the dispute.

Disclaimer: This article explains general principles of Texas insurance law and practical steps you can take. It is for informational purposes only and is not legal advice. For advice tailored to your situation, consult a licensed Texas attorney.