Chad T. Wilson Law Firm: Texas Proposes Major Changes to Insurance Appraisal Process

HOUSTON--(BUSINESS WIRE)--The Texas Department of Insurance (TDI) has proposed new rules that would significantly change how insurance appraisal disputes are handled for homeowners and residential property insurance claims in Texas. The proposed rules are part of Senate Bill 458 and are expected to take effect for policies issued or renewed on or after September 1, 2026.

Major Proposed Changes

The proposed rules would:

• Require residential insurance policies to include appraisal rights for disputed claims.
• Allow either the insurance company or policyholder to demand appraisal without needing both parties to agree.
• Require insurance companies to provide written notice explaining appraisal rights when a claim is accepted or denied.
• Create statewide deadlines for selecting appraisers, umpires, and completing the appraisal process.
• Require appraisers and umpires to be qualified, independent, and disinterested in the outcome of the dispute.
• Make appraisal awards binding unless there is fraud, material mistake, or lack of authority.

Residential Property Claim Timeframes

For homeowners and residential property claims:

• Policyholders generally have 1 year after a claim decision to demand appraisal.
• Each side has 20 days to select an appraiser after appraisal is demanded.
• Appraisers have 15 days to select an umpire.
• Appraisers must attempt to resolve the dispute within 120 days.
• If an umpire is needed, the appraisal award must generally be completed within 240 days.

Public Hearing and Public Comment Deadlines

The Texas Department of Insurance will hold a public hearing on the proposed rules on:

• June 2, 2026
• 10:00 a.m. Central Time
• Barbara Jordan State Office Building
  1601 Congress Avenue
  Austin, Texas 78701
  Room 2.035

TDI stated that the hearing will be available both in person and online. Information on how to join virtually and participate in the hearing will be posted on the Texas Department of Insurance website at:

www.tdi.texas.gov/alert/event/index.html

The public may also submit written comments regarding the proposed rules through:

• June 8, 2026 at 5:00 p.m. Central Time

Comments may be submitted by email to:

[e-mail]

Statement from Chad T. Wilson Law Firm

The Chad T. Wilson Law Firm is closely monitoring these proposed changes and encourages Texas policyholders to understand how the new appraisal deadlines and procedures could affect future insurance disputes.

“These proposed rules create major new timelines and requirements that could directly impact Texas homeowners during insurance claim disputes,” said Chad T. Wilson. “Understanding these deadlines and appraisal rights will be critical if the rules are finalized.”