Bill > HB4020

This bill modifies Texas insurance law by updating requirements for property damage insurance claims and presuit notice procedures. The bill requires more detailed presuit notices from claimants, including a specific description of property damage, the legal basis for the claim, and a detailed account of potential insurance policy or legal violations. Claimants can now choose to initially state that they need more time to evaluate the claim's total value, but must eventually specify an amount they will accept in full payment. The bill reduces the timeframe for insurers to inspect damaged property from 30 to 15 days after receiving notice and from 60 to 30 days to complete the inspection. The legislation also introduces provisions that allow insurers to pay the claimed amount and separately challenge attorney's fees, and it modifies the circumstances under which an action can be abated (temporarily halted). Additionally, the bill changes how attorney's fees can be awarded, potentially preventing claimants from receiving fees if they do not provide a specific amount owed in the presuit notice. These changes aim to create more clarity and efficiency in the insurance claim process, providing more structured guidelines for both insurers and claimants. The bill will apply to claims made and actions filed on or after its effective date, which requires a two-thirds vote in the Texas Legislature to take immediate effect, or will otherwise become effective on September 1, 2025.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4020