It is important to understand the time frame under which lawsuits must be filed. As part of that, reading the insurance policy is vital. A 2024 opinion from the Western District of Texas, Del Rio Division, discusses limitation periods written into insurance policies. The opinion is styled, Antonio Caballero v. Allstate Vehicle And Property Insurance Company.
This case was decided on the summary judgment motion filed by Allstate.
This matter arises from an insurance claim. The Plaintiff alleges hail storm property damage in excess of $20o,000. The Plaintiff filed a claim with the Defendant on December 13, 2018. The Defendant denied the Plaintiff’s claim on October 11, 2019. The Plaintiff filed suit in Texas state court on August 21, 2023, asserting: violations of the Texas Insurance Code and breach of contract among other causes of action.
The Court finds that the applicable statute of limitations bars each of Plaintiff’s claims. The applicable limitations period for the Plaintiff’s breach of contract and other causes of action is two years and one day. More than two years and one day elapsed between the Defendant’s denial of the claim on October 11, 2019 an the filing of the lawsuit on August 21, 2023.
The normal statute of limitations for a breach of contract claim is four years. However, this period of time may be shortened by written contract between the parties to the contract. In this case, the Allstate homeowners policy shortened the limitations period to two years and one day which is the shortest amount of time that a limitations period is recognized under Texas law. The statute dealing with contractual limitations periods is found in the Civil Practice & Remedies Code, Chapter 16.