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Homeowner sues American Security over wind claim denied after deductible
The insurer initially estimated wind-related water penetration but valued the building repairs below the $10,732 wind deductible for a zero payout, then later denied the supplement citing rot and prolonged water exposure.
A Plano, Texas homeowner has filed a lawsuit against American Security Insurance Company after a windstorm claim was denied, with the complaint alleging the insurer’s stated reasons for nonpayment changed between its initial estimate and later denial letters, according to Insurance Business. The claim followed a May 28, 2024 windstorm at the home. Coverage was lender-placed after United Wholesale Mortgage obtained force-placed hazard insurance, with a $6,093 annual premium charged through the homeowner’s mortgage or escrow account, the filing says. The complaint also says a Texas endorsement defines “you” and “your” to cover both the mortgage company and the borrower. The homeowner’s suit alleges an estimator inspected the property on June 10, 2024 and produced a June 27, 2024 estimate that listed the loss type as “Wind” and acknowledged apparent “water penetration under the metal shingles.” It also states the building work was valued at $8,037.03, below a $10,732 wind deductible, resulting in a net payment of zero. A denial dated July 23, 2024 then cited no storm-related roof or fence damage, attributing the interior water damage to a roof failing due to wear and tear, the complaint says.
After the homeowner submitted contractor evidence and a certified-mail demand for about $417,273, a March 14, 2025 letter denied a supplement on broader grounds, stating the damages were caused by rot, deterioration and prolonged water exposure that is not covered. The complaint says three independent contractors estimated repairs at $169,430.12, $398,973.00 and $416,042.89, against a $536,600 dwelling limit, and accuses the insurer of breach of contract, bad faith, and Texas Insurance Code violations, including knowingly misleading insurance representations. The mortgage company is not accused of wrongdoing, and Assurant is described as a brand name, the article says.