Insurance Topic

60-Day Underwriting Period in Texas

The first 60 days of a Texas homeowners policy are a period during which specified additional cancellation grounds may apply under Texas Insurance Code §551.104(g). The period does not create an unrestricted right to cancel.

Definition

For homeowners insurance subject to Chapter 551, Subchapter C, the early-policy period is the interval during which the policy has been in effect less than 60 days. Section 551.104(g) permits additional cancellation grounds during that interval, while other grounds in the section may apply throughout the term.

Structural Components

  • Policy effective date and elapsed time establish the early-policy interval.
  • The condition-based ground requires an increased risk of hazard, nondisclosure in the application and absence of a prior claim concerning the condition.
  • The required-report ground concerns an insurer’s nonacceptance, before the effective date, of a required qualifying inspection report.
  • Other grounds include nonpayment, a fraudulent claim, a TDI legal determination and a qualifying increase in hazard under the statutory conditions.

Parameters and Conditions

  • The required report must be completed by a TREC-licensed or otherwise authorized inspector and dated no earlier than 90 days before the policy effective date.
  • For §551.104(g)(2), the report is treated as accepted unless rejected before the 11th day after the insurer receives it.
  • The phrase “less than 60 days” describes the statutory early-policy boundary; it is not a universal inspection deadline or repair allowance.

Topic Relationships

Exceptions, Limitations, and Boundaries

  • A failed inspection alone does not identify a permitted cancellation ground.
  • Expiration of the early-policy period does not eliminate other authorized cancellation grounds.
  • Application depends on the insurer and policy falling within the governing provisions; surplus lines and other arrangements require separate analysis.
  • Cancellation during a term and nonrenewal at expiration are distinct concepts.
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