TX HB854

Requires insurers offering replacement cost coverage on homeowner's, renter's, or condominium owner's policies to pay at least 80% of the estimated repair or replacement cost (minus deductible) in the initial claim payment

Applies to all residential property insurers authorized in Texas, including county mutual insurance companies, Lloyd's plans, and reciprocal or interinsurance exchanges

Mandates insurers pay the remaining balance after the policyholder documents that repairs or replacement are completed and the deductible is paid

Caps insurer liability at the total cost to replace lost or damaged property with items of like kind and quality

Applies to policies delivered, issued, or renewed on or after January 1, 2026, with the act taking effect September 1, 2025