Reported / Citable
Background
Jose and Emma Villegas insured their Houston home under a State Farm Lloyds homeowners policy covering accidental direct physical loss caused by wind or hail, subject to a $4,264 wind-and-hail deductible. After Hurricane Beryl struck Houston on July 8, 2024, the Villegases reported damaged shingles and water intrusion.
State Farm’s adjuster estimated covered repairs at $2,099.26, below the deductible. The Villegases maintained that the roof required replacement and submitted contractor estimates and an expert report reflecting substantially higher repair costs. They sued for breach of contract, violations of the Texas Prompt Payment of Claims Act and other Texas Insurance Code provisions, and breach of the duty of good faith and fair dealing. State Farm moved for summary judgment and separately moved to strike two proposed experts.
The Court’s Holding
Magistrate Judge Dena Hanovice Palermo recommended granting State Farm summary judgment on every claim. The court concluded that the Villegases produced no evidence from which a reasonable jury could determine that covered wind damage from the July 8, 2024 storm exceeded the $4,264 deductible. Their contractors’ estimates identified repair costs but provided no causation analysis or allocation of damage to the covered event.
Although the Villegases’ expert report attributed the damage to the July 8 wind event, the expert disclaimed that causation opinion during his deposition and acknowledged that he had not investigated when the identified damage occurred. Because the Villegases could not establish entitlement to policy benefits, and identified no injury independent of those benefits, their statutory and common-law extracontractual claims also failed. The court denied State Farm’s motion to strike as moot, while allowing it to be re-urged if necessary.
Key Takeaways
- A repair estimate does not establish a covered loss when it fails to identify which damage was caused by the covered event.
- An expert’s overall damage figure could not create a fact dispute after the expert disclaimed any opinion connecting particular damage to the claimed storm date.
- Without evidence that covered damage exceeded the deductible or that the insureds suffered an independent injury, neither the contract claim nor the derivative Texas insurance claims could survive summary judgment.
Why It Matters
The recommendation underscores that Texas property-insurance plaintiffs must present evidence linking claimed damage—and the associated repair costs—to a covered cause of loss. Evidence of a property’s total repair needs is insufficient if it does not segregate covered storm damage from damage caused at other times or by other sources.
It also illustrates the importance of consistency between an expert’s report and deposition testimony. A written causation statement may not create a triable issue when the expert later disclaims that opinion under oath.