Bill > HB4268

This bill introduces a new provision to Texas insurance law regarding recoverable depreciation in property damage claims. Specifically, the bill requires insurance policies to allow policyholders to recover depreciation (the reduction in value of property over time) that was initially withheld from a claim payment for up to two years after the initial claim payment is issued. Importantly, this recovered depreciation cannot be considered part of the insurer's defense costs, nor can it be deducted from the policy's defense coverage limits. The new law will apply to insurance policies that are delivered, issued, or renewed on or after January 1, 2026, and will take effect on September 1, 2025. This change aims to provide policyholders with more flexibility in recovering the full value of their property damage claims by giving them an extended window to reclaim withheld depreciation funds.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4268