When to File a Commercial Hail Damage Insurance Claim for Your Roof – And Why Timing Matters More Than You Think
Texas business owners are no strangers to hailstorms, and the damage they inflict on commercial properties—especially roofs—can be significant and expensive. In 2024, Texas saw the highest number of hail-related weather events, according to the National Oceanic and Atmospheric Administration (NOAA). 2023 was also a significant year for Texas, with one storm that impacted Travis and Williamson County resulting in over $500 million in hail-related damage. That same year, another hail event in the Dallas-Fort Worth area caused an estimated $7 to $10 billion in insured damages. Overall, Texas consistently ranks as the top state in the nation regarding the number and scale of hail-related weather events. But one of the most crucial decisions property owners face after a storm isn’t just whether they’ve been damaged, but whether and when to file an insurance claim. Waiting too long or failing to document properly can lead to more than just delayed repairs—it could cost you your claim altogether.
Understanding the Clock: Time Limits on Hail Damage Claims in Texas
Most commercial insurance policies significantly shorten the typical deadline to file suit allowed by Texas law—commonly two years from the date of the initial decision on the claim. Miss that deadline, and your claim may be barred. However, the real deadline can be much sooner in practice. Why? Because if another hailstorm hits after the first, your ability to prove which storm caused which damage becomes your burden. Texas law on (which is in the minority) requires policyholders—not insurers—to isolate and identify which storm caused each specific element of damage. Without clear documentation, you may have trouble with your claim.
Understanding Your Insurance Policy
Every insurance policy is different, and understanding the terms, coverage limits, and deductibles is essential for policyholders. In some cases, policies can be broken down into Replacement Cost Value (RCV) and Actual Cost Value (ACV) coverage. RCV provides that a policyholder will receive the amount necessary to replace covered damage at the present cost for items of like kind or quality. On the other hand, ACV is the amount that a lost item was worth at the time of purchase or the amount equal to the replacement cost minus depreciation of the damaged property at the time of loss.
Insurance policies often contain limited coverage for items such as debris removal, wind-driven rain, and mold remediation, making it imperative to strategically categorize and present your recovery costs in order to maximize your available insurance coverage. A thorough grasp of the details of your business interruption, extra expense, code & ordinance upgrade, ICC, and other relevant coverages will help put you in the driver’s seat when it comes to navigating your hail claim. Understanding the specific language of your commercial property insurance coverages and exclusions is critical to making sure you get everything you’re entitled to under your policy.
Damage That "Doesn’t Exceed the Deductible"? Think Again.
Many policyholders hesitate to file because they believe the damage might not exceed their deductible. That’s understandable. Wind and hail deductibles often range from 1% to 5% of your property's total insured value. That’s a high bar. But assessing damage isn’t guesswork—especially when roof damage from hail may worsen over time or be aggravated by future storms. If you don’t file now and another storm rolls through, you may be legally precluded from recovering for any damage at all because the insurer will claim you can’t prove which storm caused it.
Our firm works with some of the country’s best forensic roofing experts and engineers who can evaluate and estimate repair costs and determine whether the damage meets your deductible threshold. If you wait, you risk far more than an uncovered repair—you risk losing your claim entirely.
How to Spot and Document Hail Damage
Signs of hail damage can range from the obvious—like punctured membranes and visible roof dents—to the subtle, such as granule loss, loose fasteners, or drainage issues from depressed areas on flat roofs. After a storm, take these steps:
Inspect (or better, have an expert inspect) your roof thoroughly.
Photograph all signs of damage, inside and out.
Document the storm date and corresponding weather reports.
Report the damage promptly to your insurer.
If there’s any indication of damage, file your claim immediately.
Insurance Adjusters & Claim Denials: Don’t Go It Alone
After you file, your insurance carrier will send out an adjuster. While they may seem cooperative, remember—they represent the insurer’s interests, not yours. We strongly recommend retaining your own expert or legal advocate early in the process to protect your rights and level the playing field, particularly in large or complex claims.
Don’t wait until your deductible doubts become a denial.
Filing a claim too late—or not at all—because of uncertainty about damage severity can be a costly mistake. Commercial property owners should act quickly after a hailstorm to inspect, document, and, if warranted, file their insurance claims. Delays and doubts can open the door for insurers to deny valid claims, especially when storms stack up.
Ideally, insurance companies would be understanding of the various reasons that even significant hail damage to a commercial roof goes unnoticed for weeks, if not months, and would pay out claims in a timely and fair manner. Unfortunately, this is often not the way things work in the insurance industry, and commercial property insurance disputes can remain unresolved for months, if not years. Whether it’s a major commercial lines insurer, a surplus lines carrier not directly licensed in a particular state, a Lloyds entity or other insurance group, it’s important to understand the goals, tactics, and methods that the insurance industry employs in the handling of hail damage insurance claims.
When filing a hail insurance claim, Texas business owners may face several obstacles. Understanding these challenges can help you navigate the process more effectively.
Underpayment
One of the most common issues is underpayment. Insurance companies may offer less than what you believe is necessary for repairs. This can happen due to:
Spot roof repairs vs. replacement disputes are common, and insurers often look for exclusions like wear and tear or improper installation.
Failure to account for local code enforcement: laws or ordinances which impact the rebuild process.
Outdated price lists: Using old pricing data or information in Xactimate to estimate repair costs can lead to lower payouts.
Damaged windows, siding, and interior moisture intrusion often become a battleground for arguments as ensuing latent damages arise.
To combat underpayment, get detailed repair estimates from reputable contractors (RCAT and other Texas roofers’ associations offer lists of endorsed roofers, for example) or a licensed public adjuster. This documentation can help you argue for a fair settlement.
Excessive Depreciation
Insurers might reduce the payout based on the age and condition of the damaged property. Of course, while there are several ways to calculate depreciation, carriers typically use the straight line method. Importantly in Texas, a carrier likely cannot depreciate labor from the total Replacement Cost Value (RCV). Mitchell v. State Farm is a decision from the Fifth Circuit Court of Appeals holding that under Mississippi law, unless the policy specifically permits depreciating labor, labor cannot be depreciated. While the Court was applying Mississippi law, another federal court recently considered Mitchell in the context of Texas law. Sims v. Allstate found that the law in Texas was identical to the law in Mississippi on that issue, and therefore Mitchell would likely apply. While not binding authority, Mitchell and Sims strongly support that depreciating labor in Texas is improper.
Detailed Estimates
Insurance companies often require detailed estimates for repairs. These estimates must be thorough and accurate. Most insurers use a software program called Xactimate for these estimates. This program helps standardize repair costs and ensures consistency.
Consider hiring a contractor who is certified in Xactimate. Having multiple assessments will be useful when discussing scope of loss with your insurer. Don't get a written estimate until it is comprehensive and complete. The right forensic experts can provide the detailed estimates your insurer will accept.
Commercial Property Hail Claim Attorneys
Our experienced attorneys have a strong grasp of Texas insurance law and various types of insurance coverage, enabling us to build strong cases for pre-suit claim negotiations or in litigation, if needed, on behalf of our clients. We have developed a national reputation handling commercial hail property disputes involving a variety of types of properties, each of which have unique characteristics that need to be evaluated. Our experience includes:
School districts of all sizes throughout Texas
Apartment complexes and other multi-family properties
Office buildings of all sizes
Churches and other houses of worship
Hotel and motel properties
Retail and strip centers
Industrial buildings
Gas stations and convenience stores
Homeowners and Property Owners Associations
Unlike most firms, this is all we do—our entire practice is dedicated to helping policyholders get the just compensation they deserve for their properties following hailstorms. We are a nationally recognized bad faith insurance litigation law firm that is familiar with the tactics insurance companies often use to deny or underpay claims. Our attorneys counter with successful strategies, including hiring professional roofing inspectors, forensic experts, engineers and meteorologists to fully inspect the nature and timing of the hail damage . Of note, the Texas Department of Insurance found that engaging the services of an advocate historically increased an insured’s payment on a property insurance claim by an average of 308%.*
To learn more about the legal assistance we can provide on your hail insurance claim, give us a call at (346) 704-5295, or contact us online.