What Is an “Unreasonable Delay”?
An unreasonable delay in an insurance claim occurs when an insurance company takes longer than legally allowed—or longer than reasonably necessary—to process, investigate, or pay a claim. In the state of Texas, insurers are required to follow strict timelines under the Texas Insurance Code. Delays that go beyond these timelines without a valid reason may be considered unfair or even bad faith.
Texas Deadlines Insurance Companies Must Follow
Texas law sets clear expectations for how quickly insurers must act:
- Acknowledge your claim within 15 days of receiving notice
- Begin an investigation promptly
- Accept or deny the claim within 15 business days after receiving all required information
- Send payment within 5 business days after approving the claim
If the insurer needs more time, they must provide a valid reason for the delay.
What Counts as an Unreasonable Delay?
Not every delay is considered unreasonable. However, red flags include:
- Long periods of no communication
- Repeated requests for the same documents
- Delays without clear explanation
- Failure to meet legal deadlines
- Stalling tactics to avoid payment
If your insurer is not keeping you informed or is dragging out the process unnecessarily, it may cross into unreasonable delay.
When Delays May Be Justified
Insurance companies are allowed some flexibility in complex situations. Delays may be considered reasonable if:
- The damage is extensive and requires a detailed investigation
- There are disputes over coverage or cause of loss
- Additional documentation is legitimately needed
However, even in these cases, the insurer must communicate clearly and act in good faith.
What You Can Do If Your Claim Is Delayed
If you believe your claim is being delayed unfairly:
- Request a written explanation from your insurer
- Keep records of all communications and timelines
- Follow up regularly and document responses
- File a complaint with the Texas Department of Insurance
- Consider speaking with an attorney if delays continue
Conclusion
An unreasonable delay happens when an insurance company fails to meet required timelines or unnecessarily stalls your claim without justification. Understanding your rights and keeping detailed records can help you challenge delays and protect your ability to recover what you are owed.
