Texas insurance law is constantly changing, and the last few weeks brought some major updates that could impact homeowners, contractors, and anyone handling property insurance claims. Between a new Texas Supreme Court opinion, updated appraisal rules from the Texas Department of Insurance, and a new Fifth Circuit case on concurrent causation, there is a lot happening in the world of property claims. At Green, Klein, Wood & Jones, we stay on top of these changes because they directly affect how claims are handled across Texas. Here is a breakdown of the biggest updates — without the legal jargon overload.
Texas Supreme Court Expands Appraisal in In re Ace
The first major update comes from the Supreme Court of Texas in a case called In re Ace.
The question before the Court was simple: can an insurance company force appraisal before the parties fully “hit a wall” on the value of the claim?
The Court said yes.
What Happened in the Case?
The property suffered severe water damage. The insurance carrier made several partial payments, disputed some damages entirely, and argued that other repairs were overpriced or unnecessary.
The carrier then demanded appraisal.
The insured pushed back, arguing there was no true “impasse” yet because the insurance company had not clearly stated its final position on the amount of loss.
The Texas Supreme Court rejected that argument.
The Big Takeaway
According to the Court, the parties do not need to reach a complete deadlock before appraisal becomes appropriate. Instead, all that is required is a “disagreement” over the amount of loss.
That is a big distinction.
For years, many policyholders argued that appraisal should not happen until both sides had fully investigated the claim and clearly stated their positions. In re Ace lowers that threshold.
The Court also addressed another common argument: whether appraisal should happen when there are coverage disputes.
Again, the Court sided with appraisal moving forward. The justices explained that even when coverage questions exist, appraisal may still proceed if the dispute involves the “amount of loss.”
Why This Matters
This decision will likely make it easier for insurance carriers to invoke appraisal earlier in the claims process.
That could speed up some claims. But it could also create problems when investigations are still developing or when important coverage issues remain unresolved.
For policyholders and contractors, timing is now more important than ever.
Texas Department of Insurance Revises Residential Appraisal Rules
The second major update comes from the Texas Department of Insurance, also known as TDI.
TDI recently released revised proposed rules for residential insurance appraisals.
The good news? Many of the biggest problems in the original proposed rules were fixed. TDI also shortened the overall timeline for the appraisal process.
But one controversial issue remains.
The One-Year Deadline Problem
The revised rules still include a requirement that policyholders invoke appraisal within one year, or the right is waived.
That is a major concern.
Many homeowners do not even realize they have underpaid damage until well after a year has passed. Storm claims, hidden damage, supplemental repairs, and delayed investigations can all take time to uncover.
A strict one-year deadline could unfairly cut off legitimate claims.
The new rules are not scheduled to take effect until September 2026, and the public comment period is still open. A public hearing is scheduled for June 2, 2026, where Hunter Klein of Green, Klein, Wood & Jones will speak about the proposed rules and discuss alternatives to the one-year requirement.
Fifth Circuit Signals Possible Shift on Concurrent Causation
The third update comes from the United States Court of Appeals for the Fifth Circuit in Thompson v. State Farm Lloyds.
This case involved a common storm claim argument.
The homeowner argued that because the property had been insured by State Farm since the home was built, the roof damage must have occurred during a State Farm policy period.
The Fifth Circuit disagreed.
Why the Court Rejected the Argument
The Court explained that insurance coverage was not one continuous contract. Instead, each yearly policy renewal created a separate one-year contract.
Because of that, the insured still had the burden to prove when the damage occurred and during which policy period.
Simply showing hail damage existed was not enough.
But the Court Left the Door Open
Even though the insured lost, the Fifth Circuit included important language near the end of the opinion that could become significant in future Texas storm cases.
The Court acknowledged that hail claims create unique proof problems. Most homeowners are not climbing onto their roofs after every storm looking for damage.
The opinion suggested that Texas law may allow policyholders to meet their burden by showing the damage must have occurred during one of several storms within the policy period — even without identifying an exact date of loss.
That discussion is technically “dicta,” meaning it is not binding law. Still, lawyers and courts often pay close attention to this type of language because it can signal where courts may head next.
Why This Matters for Storm Claims
Texas courts have traditionally applied the concurrent causation doctrine very strictly. Policyholders often faced difficult burdens when trying to separate covered damage from non-covered damage or pinpoint exact storm dates.
The Fifth Circuit’s comments may indicate a slightly more practical approach could be developing in future cases and hopefully indicate a slight widening of a very narrow gap.
That does not eliminate the burden of proof. But it may recognize the real-world difficulty of proving exactly which hailstorm damaged a roof over time.
Final Thoughts
Texas appraisal law is evolving quickly.
In re Ace makes appraisal easier to invoke. TDI’s revised rules could create stricter deadlines for policyholders. And Thompson hints that courts may be rethinking how rigidly concurrent causation should apply in storm damage cases.
For homeowners, contractors, and public adjusters, these changes are not just technical legal updates. They affect strategy, timing, and the ability to recover on claims. At Green, Klein, Wood & Jones, we continue to monitor these developments closely and advocate for fair claim handling across Texas.
