HB 1774 (Chapter 542A): Pre-Suit Notice on Weather Claims
Since 2017, Texas policyholders on weather-related first-party claims must send a specific pre-suit notice or risk losing attorney's fees. Here's what the letter has to say.
In 2017, the Texas Legislature enacted HB 1774, codified at Chapter 542A of the Texas Insurance Code. It applies to first-party claims arising from 'forces of nature' — wind, hail, hurricanes, tornadoes, wildfires, and similar weather events.
The core requirement: before filing suit, the policyholder must send the carrier a written pre-suit notice at least 61 days in advance, stating the specific acts giving rise to the claim, the specific amount alleged to be owed, and the amount of reasonable and necessary attorney's fees incurred to date. Skipping or shortchanging this notice can result in the loss of a portion of statutory attorney's fees, and can trigger the carrier's right to elect responsibility for an agent's conduct.
For a policyholder, this means two things. First, keep your paper record clean — the notice letter is easier to draft when you have organized correspondence, estimates, and photos. Second, if you are seriously considering litigation, get a Texas first-party bad-faith attorney involved before sending the notice, so the letter is drafted correctly.
Public adjusters do not send 542A notices — that is legal work. But the file we build during representation is exactly the file an attorney needs to write a strong notice if it comes to that.
Citation: Tex. Ins. Code ch. 542A (HB 1774, 2017).