Bill > SB2575

This bill modifies the Texas Insurance Code by introducing a new provision regarding recoverable depreciation in property damage insurance claims. Specifically, the bill requires insurance policies to allow policyholders to recover depreciation that was initially withheld from a claim payment for up to two years after the initial claim payment is issued. The bill importantly stipulates that this recoverable depreciation cannot be considered part of the insurer's defense costs and cannot be deducted from the policy's defense coverage limits. The new provision will apply only to insurance policies that are delivered, issued, or renewed on or after January 1, 2026, and the bill itself will take effect on September 1, 2025. In practical terms, this means that policyholders will have an extended window to recover the full value of their property damage claim, including depreciation, which could provide significant financial protection and flexibility for individuals dealing with property damage insurance claims.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2575