Allstate Must Face Texas Homeowner’s Lawsuit, 5th Circuit Says

Allstate Vehicle and Property Insurance Co. must face claims it violated Texas insurance law when it allegedly failed to promptly pay a homeowner damages from a broken water heater.

A Texas district court wrongly determined Allstate had fulfilled its obligations under the Texas Prompt Payment of Claims Act when it paid the homeowner the appraisal award and interest in the middle of litigation, Judge Stephen A. Higginson of the US Court of Appeals for the Fifth Circuit wrote in a Tuesday opinion partially reversing the lower court’s ruling.

Sterling Senechal submitted a claim to Allstate in January 2022 for damage ...