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Texas appeals court upholds contractor’s storm-repair contract
The court ruled the contractor’s contact with Travelers was limited to repair scope and costs, not consumer advocacy or claim settlement.
A Texas appellate court affirmed that a restoration contractor could not be treated as an unlicensed public adjuster in a dispute over storm-damage repairs, meaning the homeowner still owes the remaining bill. Insurance Business reports the Court of Appeals for the Sixth Appellate District of Texas upheld a trial court finding that the contractor stayed within what the Texas Insurance Code allows.
The case dates to winter storm Uri aftermath, when burst pipes flooded a Dallas County home on February 18, 2021, while the homeowner was in California. Her Travelers policy covered water damage with a dwelling limit of $197,000 and personal property capped at $98,461, and the contractor’s crew arrived the next day to remove water.
In March 2021, the homeowner signed an “Emergency Work Agreement & Authorization” making her solely responsible for payment of the total cost, including any balance if insurance fell short. She also signed a third-party form allowing the contractor to contact Travelers to request inspections and claim status updates, as damage surfaced and the repair estimate rose, including a version that reached $166,300.36.
The homeowner later sued after Travelers denied many line items, arguing the contractor acted as a public adjuster without a license under Section 4102.051 and that the statute meant she could void the contract. The courts rejected that position, concluding the agreement did not negotiate or effect claim settlement, and an expert witness testified the contractor only discussed scope and line items that the code permits.