SB 458

relating to an appraisal process for disputed losses under personal
automobile or residential property insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subtitle A, Title 10, Insurance Code, is amended
by adding Chapter 1813 to read as follows:
CHAPTER 1813.  APPRAISAL OF DISPUTED LOSSES
Sec. 1813.001.  APPLICABILITY OF CHAPTER.  (a)  This chapter
applies only to a personal automobile or residential property
insurance policy delivered, issued for delivery, or renewed in this
state by an insurer, including:
(1)  a capital stock insurance company;
(2)  a mutual insurance company;
(3)  a county mutual insurance company;
(5)  a reciprocal or interinsurance exchange;
(6)  a farm mutual insurance company;
(7)  an eligible surplus lines insurer if this state is
the insured's home state as defined by Section 981.002; and
(8)  the FAIR Plan Association.
(b)  This chapter does not apply to:
(1)  an insurance policy delivered, issued for
delivery, or renewed by the Texas Windstorm Insurance Association;
(2)  a commercial insurance policy.
Sec. 1813.002.  RULES.  The commissioner shall adopt rules
necessary to implement this chapter, including rules establishing
the period in which an appraisal under a provision required by this
chapter must be completed. In adopting the rules establishing that
period, the commissioner shall:
(1)  allow flexibility for an adequate investigation of
the claim that is the subject of the appraisal; and
(2)  consider the time necessary to preserve the
independence of the appraisers.
Sec. 1813.003.  REQUIRED POLICY PROVISION: APPRAISAL
PROCESS.  (a)  An insurance policy described by Section 1813.001(a)
must contain an appraisal provision that complies with this
(b)  The appraisal provision required by this chapter is
intended to provide a type of dispute resolution process solely to
determine the amount of loss when that amount is in dispute between
the policyholder and the insurer.
Sec. 1813.004.  EFFECT OF APPRAISAL.  (a)  An appraisal under
the provision required by this chapter does not affect any
(b)  Except for fraud or material mistake relevant to the
appraisal, the amount of loss determined by an appraisal under this
chapter is binding as to the policyholder and the insurer.
SECTION 2.  Chapter 1813, 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.