Texas HB4268 allows insured individuals to recover depreciation withheld from property damage claims until two years after the insurer pays the claim.

HB4268 amends the Texas Insurance Code to require insurance policies covering property damage to allow policyholders to recover depreciation withheld from a claim until two years after the insurer issues a payment for the loss. The bill prohibits insurers from considering recoverable depreciation as part of their defense costs or deducting it from any defense coverage limits. This change applies to policies delivered, issued for delivery, or renewed on or after January 1, 2026. The act takes effect on September 1, 2025.

Texas HB4268 allows insured individuals to recover depreciation withheld from property damage claims until two years after the insurer pays the claim.

HB4268 amends the Texas Insurance Code to require insurance policies covering property damage to allow policyholders to recover depreciation withheld from a claim until two years after the insurer issues a payment for the loss. The bill prohibits insurers from considering recoverable depreciation as part of their defense costs or deducting it from any defense coverage limits. This change applies to policies delivered, issued for delivery, or renewed on or after January 1, 2026. The act takes effect on September 1, 2025.