The Texas Department of Insurance released a draft framework that would require personal auto and residential property policies to carry appraisal provisions, a move designed to settle disputes over damage or loss.
The draft makes clear that either the insurer or the policyholder can demand an appraisal. Awards would be binding, unless material errors appear or the outcome violates state law.
Under the proposal, both parties must retain their own appraiser. For property claims, the evaluators get 180 days from the demand date to reach agreement. If they can’t, they must select an umpire.
That umpire – an engineer, architect, adjuster, public adjuster, or general contractor with relevant experience – would issue a decision within the same 180-day period.
The personal auto side follows similar mechanics but with shorter timelines. Appraisers would need to agree within 75 days after a demand.
The appraisal process wouldn’t extend to commercial policies or those issued through the Texas Windstorm Insurance Association.
Lawmakers triggered the new rules earlier this year with Senate Bill 458, after reports surfaced that some carriers stripped partial-loss appraisals out of personal auto contracts despite long precedent for including them.
Legislators decided to lock in appraisal access for consumers, and the department’s draft implements that mandate.
TDI emphasized this is a working draft, not formal rulemaking. Comments remain open through Oct. 6.
The Insurance Council of Texas said it is reviewing the text with its members. Our priority is to ensure the informal draft rules align with the law as passed
Richard Johnson, director of communications and public affairs for the ICT
Separate from the appraisal issue, Texas also moved earlier in 2025 to stop carriers from forcing policyholders to bundle property and auto coverage.
That ban came after complaints that homeowners were threatened with cancellations if they didn’t also place auto insurance with the same carrier.
