| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 89R13971 DNC-F | |
| 2 | 2 | By: Middleton S.B. No. 2575 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | ||
| 6 | 6 | ||
| 7 | 7 | A BILL TO BE ENTITLED | |
| 8 | 8 | AN ACT | |
| 9 | 9 | relating to recoverable depreciation for property damage claims | |
| 10 | 10 | under an insurance policy. | |
| 11 | 11 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 12 | 12 | SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is | |
| 13 | 13 | amended by adding Section 2301.011 to read as follows: | |
| 14 | 14 | Sec. 2301.011. RECOVERABLE DEPRECIATION. (a) An insurance | |
| 15 | 15 | policy providing coverage for property damage must permit an | |
| 16 | 16 | insured to recover depreciation withheld from a claim for a covered | |
| 17 | 17 | loss until the second anniversary of the date the insurer issues a | |
| 18 | 18 | claim payment for the loss. | |
| 19 | 19 | (b) The recoverable depreciation may not: | |
| 20 | 20 | (1) be considered part of the insurer's defense costs; | |
| 21 | 21 | or | |
| 22 | 22 | (2) be deducted from any defense coverage limits under | |
| 23 | 23 | an insurance policy. | |
| 24 | 24 | SECTION 2. Section 2301.011, Insurance Code, as added by | |
| 25 | 25 | this Act, applies only to an insurance policy delivered, issued for | |
| 26 | 26 | delivery, or renewed on or after January 1, 2026. | |
| 27 | 27 | SECTION 3. This Act takes effect September 1, 2025. |