MD HB283

Establishes that actual cash value for residential and commercial property insurance claims must be calculated as repair/rebuild/replacement cost minus physical depreciation, not exceeding the policy limit, for policies issued or renewed on or after October 1, 2026

Prohibits insurers from depreciating labor costs when calculating actual cash value settlements, including labor rates, overhead/profit fees, sales taxes, and other fees required to obtain labor services

Requires insurers to provide written notice at least 45 days before renewal of homeowner's or renter's insurance policies identifying any changes in coverage limits, risks covered, coverage reductions, or deductibles between expiring and renewal policies

Allows electronic delivery of renewal notices if the insurer complies with existing electronic communication requirements, and exempts insurers from notice requirements if all coverages and deductibles remain identical

Classifies failure to comply with the new actual cash value calculation requirements as an unfair claim settlement practice, effective October 1, 2026