Bill Text: TX SB2575 | 2025-2026 | 89th Legislature | Introduced

---

Bill Title: Relating to recoverable depreciation for property damage claims under an insurance policy.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2025-04-03 - Referred to Business & Commerce [SB2575 Detail]

Download: Texas-2025-SB2575-Introduced.html

---

89R13971 DNC-F
By: Middleton S.B. No. 2575

A BILL TO BE ENTITLED
AN ACT
relating to recoverable depreciation for property damage claims
under an insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2301, Insurance Code, is
amended by adding Section 2301.011 to read as follows:
Sec. 2301.011. RECOVERABLE DEPRECIATION. (a) An insurance
policy providing coverage for property damage must permit an
insured to recover depreciation withheld from a claim for a covered
loss until the second anniversary of the date the insurer issues a
claim payment for the loss.
(b) The recoverable depreciation may not:
(1) be considered part of the insurer's defense costs;
or
(2) be deducted from any defense coverage limits under
an insurance policy.
SECTION 2. Section 2301.011, Insurance Code, as added by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2026.
SECTION 3. This Act takes effect September 1, 2025.