Bill > HB345

This bill establishes a comprehensive framework for the appraisal process in residential property insurance policies in Texas, providing detailed guidelines for how insurers and policyholders should resolve disputes over loss amounts. The bill applies to most types of residential property insurers, excluding the Texas Windstorm Insurance Association and commercial insurance policies, and outlines a structured process where either the policyholder or insurer can demand an appraisal if they cannot agree on the loss amount. The appraisal process requires each party to select a competent and impartial appraiser within 20 days, who then attempt to determine the loss amount within 30 days, with the option to extend this deadline by an additional 30 days. If the initial appraisers cannot agree, they must select an impartial umpire, who will then choose between the two proposed loss amounts or select an amount in between. The bill specifies that appraisal expenses are split equally, with each party paying their own appraiser, and establishes provisions for terminating the appraisal process if deadlines are not met. Importantly, the appraisal amount becomes binding, but does not affect other policy terms or prevent future legal action. The bill will take effect on September 1, 2025, and will apply to insurance policies delivered or renewed on or after January 1, 2026.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB345