Bill > SB52

This bill, effective October 1, 2026, modifies property insurance claim settlement and notice requirements for policies issued or renewed on or after that date. For first-party claims under residential or commercial property insurance policies that adjust and settle based on the actual cash value (ACV) of damaged property, the bill clarifies that the ACV recovery will be the lesser of the cost to repair, rebuild, or replace the property minus a reasonable deduction for physical depreciation, or the policy limit. Importantly, the expense of labor necessary for repairs, including labor rates, overhead, profit, and associated taxes, will not be considered a component of physical depreciation and generally cannot be depreciated by the insurer, except for labor costs intrinsically included in manufactured materials. Additionally, insurers issuing homeowner's or renter's insurance policies must provide policyholders with at least 45 days' written notice before renewal, detailing any differences in coverage limits, excluded risks, reduced coverage, or deductibles compared to the expiring policy, unless all aspects of the renewal policy are identical to the expiring one. These changes are incorporated into existing laws regarding unfair claim settlement practices, making failure to comply with these new provisions a violation.

Budget and Finance

Finance (Senate)

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0052?ys=2026RS