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A BILL TO BE ENTITLED
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AN ACT
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relating to recoverable depreciation for property damage claims |
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under an insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is |
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amended by adding Section 2301.011 to read as follows: |
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Sec. 2301.011. RECOVERABLE DEPRECIATION. (a) An insurance |
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policy providing coverage for property damage must permit an |
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insured to recover depreciation withheld from a claim for a covered |
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loss until the second anniversary of the date the insurer issues a |
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claim payment for the loss. |
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(b) The recoverable depreciation may not: |
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(1) be considered part of the insurer's defense costs; |
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or |
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(2) be deducted from any defense coverage limits under |
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an insurance policy. |
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SECTION 2. Section 2301.011, Insurance Code, as added by |
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this Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after January 1, 2026. |
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SECTION 3. This Act takes effect September 1, 2025. |