Summary
Texas has introduced a new law requiring insurance policies to include an appraisal process for resolving disputes over property damage claims. This law, known as Senate Bill 458, allows either the insurer or policyholder to request an independent evaluation of a loss amount. Texas regulators have proposed specific rules for how this appraisal process should work.
Key Facts
- Texas enacted a law mandating insurance policies to include an appraisal process as of September 1.
- The law allows either party (insurer or policyholder) to request an independent assessment of damage or loss value.
- The Texas Department of Insurance has proposed rules for implementing this appraisal process.
- These rules apply to both homeowners and auto insurance policies.
- An appraisal demand must be made in writing within one year after coverage is confirmed.
- Each party must select their own appraiser within 30 days of the appraisal request.
- If the two appraisers cannot agree on the loss amount, they must choose a neutral umpire.
- The umpire's decision on the appraisal becomes binding for both insurer and policyholder.
