SB 2575
AN ACT relating to recoverable depreciation for property damage claims
Senate Bill • Middleton
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to Senate committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
relating to recoverable depreciation for property damage claims
Subject Areas
Bill Text
relating to recoverable depreciation for property damage claims BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is amended by adding Section 2301.011 to read as follows: Sec. 2301.011. RECOVERABLE DEPRECIATION. (a) An insurance policy providing coverage for property damage must permit an insured to recover depreciation withheld from a claim for a covered loss until the second anniversary of the date the insurer issues a (b) The recoverable depreciation may not: (1) be considered part of the insurer's defense costs; (2) be deducted from any defense coverage limits under SECTION 2. Section 2301.011, Insurance Code, as added by this Act, applies only to an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2026. SECTION 3. This Act takes effect September 1, 2025.
Bill History
filed
Bill filed: AN ACT relating to recoverable depreciation for property damage claims
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