Texas Adopts Appraisal Rules for Auto and Home Claims: Policies Must Carry an Appraisal Clause, Insurer Compliance by March 1, 2027
The Texas Department of Insurance (TDI) on November 4 formally adopted appraisal rules implementing Senate Bill 458, passed by the Texas Legislature in 2025. The rules require personal auto and residential property insurance policies in Texas to include an appraisal provision, so that when a policyholder and an insurer cannot agree on the amount of a loss, either side can demand appraisal on its own.
Codified as 28 TAC sections 5.9800 through 5.9806, the rules implement new Chapter 1813 of the Texas Insurance Code. Under the adopted text, the insured has the sole right to choose the method for selecting the umpire when a dispute arises, and keeps the contractual option of asking a court to appoint one.
During the rulemaking, TDI received comments from 204 commenters, and 18 people testified at a June 2, 2026 hearing. The department made changes to the final rules in response to the public comments.
The rules take effect on November 24, 2026, and insurers must comply by March 1, 2027. For Texas drivers and homeowners, a claim offer that looks too low now comes with a clearly written, non-lawsuit path to challenge it, spelled out in the policy itself.
(Source: Texas Department of Insurance)
Source: Texas Department of Insurance
Published by GSM · USA (original Chinese edition)
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