House Bill No. 345 introduces a new chapter, Chapter 2009, to the Texas Insurance Code, establishing a formal appraisal process for disputed losses under residential property insurance policies. This chapter applies to various types of insurers, including capital stock and mutual insurance companies, but explicitly excludes the Texas Windstorm Insurance Association and commercial insurance policies. The bill outlines the procedures for initiating an appraisal, including the selection of appraisers, the appraisal process itself, and the role of an umpire if the appraisers cannot agree on the amount of loss. It also stipulates that any appraisal provision in an insurance policy must comply with the new chapter, and that the requirements of this chapter take precedence over conflicting terms in the insurance policy.

Additionally, the bill mandates that the appraisal process must be completed within specified timeframes, with provisions for extensions in cases of weather-related catastrophes. It also addresses the division of appraisal expenses between the policyholder and insurer and clarifies that the appraisal outcome is binding on both parties. The new regulations will apply to insurance policies delivered or renewed on or after January 1, 2026, and existing policies in compliance with the new chapter will not require re-filing with the Texas Department of Insurance. The act is set to take effect on September 1, 2025.

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