A Plano homeowner says his insurer acknowledged apparent water damage, priced the repairs below his deductible for a zero payout, then changed its reasoning.
That is the core of a lawsuit filed July 17, 2026 against American Security Insurance Company in the US District Court for the Eastern District of Texas. The claim followed a May 28, 2024 windstorm at the home, according to the complaint.
The coverage was lender-placed. After United Wholesale Mortgage took out force-placed hazard insurance, the $6,093 annual premium was charged through the homeowner's mortgage or escrow account, the filing says. A Texas endorsement, according to the complaint, defined "you" and "your" to cover both the mortgage company and the borrower - which the homeowner says makes him an insured entitled to payment.
The detail claims teams will notice is the insurer's own file. The complaint says its estimator inspected the home on June 10, 2024 and produced a June 27, 2024 estimate that listed the loss type as "Wind" and acknowledged that "[w]ater penetration under the metal shingles is apparent." The same estimate scoped interior repairs but valued the building work at just $8,037.03, below the $10,732 wind deductible, for a net payment of zero.
The reasons then shifted, the complaint alleges. A July 23, 2024 denial said: "Our inspection revealed no storm related damages to your roof or fence. Both displayed significant wear and tear, which is excluded. The interior water damage would also not be covered due to your roof failing as a result of wear and tear." After the homeowner, acting on his own, sent contractor evidence and a certified-mail demand for about $417,273, a March 14, 2025 letter offered a broader reason: "Following a second review of the claim, it was determined the damages to the home are caused by rot, deterioration and prolonged water exposure which is not covered. Consequently, the supplement has been denied."
Three independent contractors estimated repairs at $169,430.12, $398,973.00 and $416,042.89, the filing says - against a $536,600 dwelling limit. Two of them attributed the damage to the May 28 storm rather than wear and tear. The homeowner does not claim every item is covered.
The suit alleges breach of contract, bad faith, and Texas Insurance Code violations, including what it calls "statutory fraudulent" or "knowingly misleading insurance representations." The mortgage company is not accused of any wrongdoing, and Assurant is described as a brand name rather than a defendant.
The allegations have not been tested, and no court has ruled on any of the claims.
