TX HB4268

Requires insurance policies covering property damage to allow policyholders to recover withheld depreciation on covered loss claims for up to 2 years after the insurer issues the claim payment

Prohibits recoverable depreciation from being counted as part of the insurer's defense costs

Prohibits recoverable depreciation from being deducted from any defense coverage limits under the insurance policy

Applies only to insurance policies delivered, issued, or renewed on or after January 1, 2026

Takes effect September 1, 2025