TX SB2575

Requires insurance policies providing property damage coverage to allow policyholders to recover depreciation withheld from claim payments for up to 2 years after the insurer issues the initial claim payment

Prohibits insurers from counting recoverable depreciation as part of their defense costs or deducting it from defense coverage limits under the policy

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

Takes effect September 1, 2025