HB4268 • 2025

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

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Morgan
Last action: 2025-04-17
Official status: 04/17/2025 H Left pending in committee
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

What This Bill Does

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

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-04-17 Texas Legislature Online
Scheduled for public hearing on . . .
2025-04-17 Texas Legislature Online
Considered in public hearing
2025-04-17 Texas Legislature Online
Testimony taken/registration(s) recorded in committee
2025-04-17 Texas Legislature Online
Left pending in committee
2025-04-01 Texas Legislature Online
Read first time
2025-04-01 Texas Legislature Online
Referred to Insurance
2025-03-10 Texas Legislature Online
Filed

Official Summary Text

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

Current Bill Text

Read the full stored bill text

89(R) HB 4268 - Introduced version - Bill Text

89R13971 DNC-F

By: Morgan

H.B. No. 4268

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.