Dallas homeowners filed a lawsuit against State Farm on 23 September 2026 seeking $58,150 for water damage, but the Fifth Circuit ruled the claim was filed after the two‑year deadline.
In February 2021 a severe storm froze and burst water pipes at a neighboring Dallas property. The resulting flood damaged floors and the structure of the homeowners’ house. State Farm paid a first settlement of $4,261 in March 2021 and advised the owners that they could submit additional receipts as repairs continued.
The policy’s fine print sets a two‑year limit for filing a lawsuit after the insurer’s decision. Texas law allows parties to shorten this period, but the limit cannot be less than two years. The Fifth Circuit held that the homeowners’ appeal arrived well beyond the March 2021 deadline, and that letters inviting receipt submissions do not reset the clock.
State Farm’s spokesperson said the insurer had acted within its contractual obligations. The homeowners argued the company had misled them, but the court rejected the bad‑faith claim, noting that a formal waiver is required to extend the deadline. The ruling also confirmed the homeowners had declined additional living expense coverage for the 2021 incident.
A separate claim for December 2022 flooding was filed under a different claim number, but the appeal focused only on the 2021 dispute. With the Fifth Circuit’s decision, the homeowners cannot recover the remaining $58,150, and no further appeal has been filed yet.