When the May 2025 Houston derecho ripped through Texas with winds exceeding 100 mph, it caused an estimated $5–7 billion in damages. Commercial property owners across Harris County and beyond were left with shattered windows, collapsed roofing, and weeks of business interruption.
But for many, the real storm hit afterward—when insurers began dragging their feet on paying valid claims. Delays, lowball offers, and endless investigations have left businesses struggling to rebuild.
That’s where the Texas Prompt Payment of Claims Act (TPPCA) comes in. This law gives policyholders powerful tools to fight back when insurers stall—and in 2025, it’s more important than ever.
Why the TPPCA Matters in 2025
The TPPCA (Texas Insurance Code Chapter 542) was designed to hold insurers accountable by setting strict deadlines for claim handling:
● 15 days to acknowledge and request information about a claim
● 30 days to approve or deny after receiving all necessary documentation
● 5 days to issue payment after approval
If insurers miss these deadlines, they face penalties of 18% annual interest on unpaid amounts plus attorney fees.
And the need is clear. According to Texas Department of Insurance data from July 2025, complaints about delayed storm-related claims have surged, particularly after the Houston derecho. For commercial property owners—from shopping centers to high-rise offices—these delays can mean crippling financial strain.
How Insurers Exploit Delays
Despite TPPCA deadlines, insurers often use familiar tactics to avoid or postpone full payouts:
● Prolonged Investigations
Sending multiple adjusters to “re-check” damages, often reclassifying storm losses as pre-existing wear and tear.
● Causation Disputes
Arguing that damage was caused by excluded perils such as flooding, even when evidence clearly ties losses to windstorm events.
● Lowball Settlements
Offering partial payments far below actual repair and business interruption costs to pressure property owners into settling cheaply.
Winning with the TPPCA
Commercial property owners don’t have to accept delays or excuses. Here’s how to leverage the TPPCA to your advantage:
1. Document Every Step
Keep meticulous records of all insurer communications—emails, letters, phone logs. These create a paper trail to prove delay violations.
2. Build a Robust Claim File
Use photos, videos, contractor estimates, and independent adjuster reports to strengthen your case against lowball offers or causation disputes.
3. Work with a Policyholder Attorney
At the Voss Law Firm, we’ve forced insurers to pay millions in storm claims by enforcing TPPCA penalties. By holding carriers accountable, we turn delays intoleverage for better settlements.
Real-World Impact: The Houston Derecho
The derecho’s impact was comparable to Hurricane Ike, and insurers have responded with the same old tactics—stalling, disputing, and underpaying.
In one recent case, our firm represented a downtown Houston office building owner whose insurer delayed payment for six months. By documenting the violations and invoking TPPCA penalties, we secured a $4.2 million recovery, covering full repairs plus additional compensation for the delay.
The 2025 Outlook
Texas storms are growing more intense, and insurers are under mounting pressure to control payouts. Unfortunately, delays have become a go-to strategy.
The good news? The TPPCA gives policyholders the upper hand—if you know how to use it. With the right evidence and experienced legal support, you can hold insurers accountable and recover the compensation your policy promises.
Don’t let delays jeopardize your property or business operations. Contact The Voss Law Firm today for a free consultation, and let us help you enforce your rights under the TPPCA.
