MD SB52

Actual cash value for property insurance claims must be calculated as the cost to repair, rebuild, or replace damaged property minus physical depreciation, capped at the policy limit

Labor costs cannot be depreciated when calculating actual cash value settlements, including labor rates, overhead, profit fees, and sales taxes on labor services

Insurers must provide written notice at least 45 days before renewal of homeowner's or renter's insurance identifying any changes in coverage limits, excluded risks, coverage reductions, or deductibles between the expiring and renewal policies

Failure to comply with the new actual cash value calculation requirements constitutes an unfair claim settlement practice under Maryland insurance law

Effective October 1, 2026, applying to all policies issued, delivered, or renewed on or after that date