Texas Property Insurance Appraisal Rules 2026: Key Changes for Agents
Texas is updating property insurance appraisal rules. The Texas Department of Insurance (TDI) has proposed new rules under Senate Bill 458. If approved, they apply to policies issued, delivered, or renewed on or after September 1, 2026.
Hereâs what agents and policyholders need to know.
Key Takeaways
- 10-day notice required before court-appointed umpire requests
- Residential appraisers: 120 days to reach agreement
- Umpire award deadline: 240 days
- Either party can demand appraisal; the other must participate
- Residential policyholders: 1 year to demand appraisal after claim decision
What Is Appraisal?
Appraisal is a dispute process used when insurer and policyholder disagree on the amount of loss.
It decides only the value of the loss, not coverage.
Key Changes Under the Proposed Rules
1. 10-Day Notice for Umpire Requests
A party must give 10 daysâ written notice before asking a court to appoint an umpire.
A copy of the request must also be shared with the other party.
2. Mandatory Timelines (Residential Property)
| Step | Deadline |
|---|---|
| Appraisers selected | Within 20 days |
| Umpire selected | Within 15 days |
| Agreement on loss | Within 120 days |
| Umpire award | Within 240 days |
If the umpire misses the deadline, a new one must be appointed.
3. Mandatory Participation
Either party may demand appraisal.
The other party must participate.
4. One-Year Deadline
Residential policyholders must request appraisal within 1 year of the insurerâs claim decision.
5. Umpire Disclosure
Umpires must disclose conflicts of interest before appointment.
Impact on Agents
For policyholder agents:
- Explain appraisal rights before a loss
- Track notice and deadlines
- Document all claim communications
For carrier-side agents:
- Update claims workflows
- Train staff on new timelines
- Update internal checklists
Effective Date
The rules are still proposed.
TDI held a public hearing on June 2, 2026, and accepted comments through June 8, 2026.
If approved, they apply from September 1, 2026.
FAQ
What is appraisal? A process to decide the amount of loss when parties disagree.
When do the rules take effect? If approved, from September 1, 2026.
What changes? Notice requirement, strict timelines, mandatory participation, and a 1-year deadline.
How long for appraisal decisions? 120 days for agreement, 240 days for final award.
Do CE courses cover this? Yes. Texas CE courses often include appraisal and claims updates.
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