S.B. No. 458 introduces a new chapter, Chapter 1813, to the Texas Insurance Code, which establishes an appraisal process for disputed losses under personal automobile and residential property insurance policies. This chapter applies specifically to policies delivered, issued for delivery, or renewed in Texas by various types of insurers, including capital stock insurance companies, mutual insurance companies, and the FAIR Plan Association, among others. However, it explicitly excludes policies from the Texas Windstorm Insurance Association and commercial insurance policies. The bill mandates that these insurance policies must include an appraisal provision that facilitates a dispute resolution process to determine the amount of loss when there is a disagreement between the policyholder and the insurer.

The bill also outlines the responsibilities of the commissioner to adopt rules for implementing the appraisal process, including establishing timelines for appraisals and ensuring compliance with the appraisal clause of the insurance policy. The appraisal process is designed to be binding for both the policyholder and the insurer, except in cases of fraud, accident, or material mistakes. The provisions of this chapter will apply to insurance policies issued or renewed on or after January 1, 2026, and existing appraisal processes in use that comply 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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