Reservation of Rights — Homeowners (Texas)

A reservation of rights letter notifies the insured that the insurer is investigating the claim but reserves its right to deny coverage based on specific policy provisions, conditions, or exclusions. Under Texas law, the ROR must be timely and specific.

Required Elements

1. Specific provisions: Identify each policy provision, condition, or exclusion under investigation
2. Factual basis: Explain the facts giving rise to the coverage question
3. Continued investigation: Confirm that the insurer will continue investigating the claim
4. Insured's rights: Advise the insured of the right to retain independent counsel if a conflict of interest exists
5. Contact information: Provide direct contact for the assigned examiner

Timing

Texas requires that investigation begin within 15 business days of notice. The ROR should issue as soon as coverage questions are identified during investigation.