Texas SB2575 amends the Insurance Code to allow policyholders to recover depreciation for property damage claims until two years after the insurer.

Texas SB2575 amends the Insurance Code to require insurance policies covering property damage to allow policyholders to recover depreciation withheld from a claim until the second anniversary of the insurer's payment. The bill specifies that recoverable depreciation cannot be considered part of the insurer's defense costs or deducted 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 SB2575 amends the Insurance Code to allow policyholders to recover depreciation for property damage claims until two years after the insurer.

Texas SB2575 amends the Insurance Code to require insurance policies covering property damage to allow policyholders to recover depreciation withheld from a claim until the second anniversary of the insurer's payment. The bill specifies that recoverable depreciation cannot be considered part of the insurer's defense costs or deducted 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.