NEVER let a property damage claim sit for two years after the Date of Loss (DOL) without consulting a lawyer. You could lose your rights—or even get sued.
Let me tell you about a real case that hit my desk this week. It’s the kind of situation that keeps attorneys up at night. A Texas policyholder filed a hail damage claim from an April 2023 storm. The claim was timely reported. The insurance company responded quickly, but with a low-ball estimate, in May 2023.
So far, nothing unexpected.
The insured then brought in a Public Adjuster (PA), who worked the file hard. They pushed back. They fought for fair value. Eventually, the claim was submitted to appraisal. The appraisal panel issued a favorable award. It looked like a win.
But there’s a massive problem – the limitations clock began to run in May 2023 when the insurance company submitted their low-ball estimate, meaning the statute of limitations ran while the appraisal process was happening, and the insured did not file suit.
Appraisal does not pause limitations
In Texas, the statute of limitations (SOL) on most insurance claims is just two years from the date the claim accrues. And when does it accrue? Usually when the insurance company first denies or underpays the claim—which, in this case, happened in May 2023 when the low estimate was issued.
The appraisal process?
It does not stop the SOL clock.
It does not toll the deadline.
It does not protect your rights under Texas law
This well-settled principle was just reinforced in June with Poole v. State Farm Lloyds, 2025 WL 1943754 (June 30, 2025) where an insured relied on appraisal pausing the limitations period, and the Court held definitively “use of the appraisal process to resolve a dispute has no bearing on any deadlines or enforcing any missed deadlines … The [insurance company’s] agreement to participate in appraisal did not extend limitations….”
That means while everyone was focused on the appraisal and waiting for the carrier to issue payment, the insured’s right to sue may have quietly expired.
What’s at Stake?
The insured is still waiting on payment—and they’re understandably nervous the insurer might not pay at all. They also asked about collecting interest or penalties. Unfortunately, I had to give them the hard truth: “You might be out of luck.”
And here’s where it gets worse.
The Public Adjuster involved owes this insured a fiduciary duty. They were hired to advocate on the insured’s behalf, not just on the claim value—but also to help protect their legal interests. Letting the statute run without consulting an attorney or warning the client?
That’s a serious issue. If I, as an attorney, let an SOL expire on my watch, that’s classic legal malpractice. There’s a strong argument that a licensed PA could face similar exposure. This PA may very well be hearing from the insured’s attorney soon, along with a request to notify their E&O carrier.
Lessons for Policyholders and Professionals Alike
- If your claim is approaching the two-year mark—talk to a lawyer.
- Don’t assume appraisal protects you from deadlines. It doesn’t.
- Public Adjusters must understand the legal risks tied to SOL and act accordingly.
The cost of inaction can be catastrophic. Rights lost. Coverage forfeited. Legal action—against you.
Final Word
If you’re a policyholder, don’t wait. If you’re a PA, don’t gamble with your client’s legal rights. A simple conversation with an attorney could mean the difference between resolution and ruin.
