House Bill No. 153 introduces a new subchapter to the Texas Insurance Code that regulates the use of aerial images by insurers when determining the nonrenewal of residential property insurance policies. The bill defines key terms such as "aerial image," "insurer," "nonrenewal," "renewal," and "residential property insurance." It mandates that if an insurer decides to use aerial images for nonrenewal, they must provide a written notice to the insured at least 61 days before the policy expires. This notice must include date-stamped images showing specific defects or conditions that violate the insurer's underwriting guidelines, as well as information on how the insured can address these issues.

Additionally, the bill requires insurers to establish a process for insureds to document completed repairs, consider this documentation in their nonrenewal decision, and provide an appeals process for correcting any errors. Insurers must also allow at least 60 days for the insured to remedy the identified defects and must offer a renewal policy if the insured provides proof of compliance. The bill clarifies that it does not limit an insurer's right to nonrenew a policy for reasons unrelated to the defects identified in the notice. The provisions of this subchapter will apply to policies issued or renewed on or after April 1, 2026.

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