HB 1774: The Facts & The Misinformation

Aug 28, 2017


You may have seen social media posts making the rounds claiming to explain “your rights and obligations” when it comes to reporting an insurance claim.

These posts are misinformed rumors claiming that HB 1774 will restrict the rights of insureds to file claims & receive their due benefits. This is simply not true.

It is true that HB 1774 goes into effect Friday, September 1st, but it’s not a bill aimed at stripping the rights of insureds. This bill (HB 1774) does not change how claims are filed or handled. It is simply an extra measure to prevent fraudulent and abusive lawsuits.

The Facts

— The normal claims process has not changed.
— A person making a claim with their insurance company after September 1, 2017 will go through the same process as a person making a claim before September 1, 2017.
— Texas has the strongest consumer protections in the nation against insurers that unfairly deny or delay claims.
— You will continue to have a full-range of remedies in the event an insurance company acts fraudulently or in bad faith.
— HB 1774 (Lawsuit-abuse Legislation) applies ONLY to lawsuits filed after September 1, 2017.
— The Texas Department of Insurance (TDI) will, as always, in catastrophic events, be monitoring the activities of insurance companies to make sure that claims are being paid properly and promptly.
— Please file your claim as quickly as possible to help expedite the process.
— Please understand that the claims process following catastrophic events can be slower than normal as the volume of submissions drastically increases.
— A sharp increase in lawsuit abuse following storms (especially hail storms) has led to HB 1774.
— The new law applies only to a lawsuit filed against an insurance company by a policyholder when the policyholder’s insurance claim is not timely paid or is underpaid, or when the insurance company acts in bad faith in dealing with the policyholder’s claim.
— Lawsuits are the exception, not the rule. The vast majority of Texans will go through the regular insurance claims process without needing to file a lawsuit.


— Don’t be spooked by Click Bait articles on Social Media.
— Contrary to Social Media posts, the new bill does not limit your rights as an insured, does not negate the coverage from your policy, and will not impact your claims process.

For more information about filing claims, visit our Disaster Response Center or read about the Claims Process.


As an insurance provider, we know the impact adverse conditions and weather events can have. Being prepared and informed helps you protect what matters most.

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