Texas Insurance Code Chapter 1813

Texas Insurance Code Chapter 1813 addresses appraisal provisions in applicable personal automobile and residential property insurance policies. This page focuses only on how the chapter may relate to a Texas auto total-loss valuation.

The Texas Legislature passed Senate Bill 458, which added Chapter 1813 to the Texas Insurance Code. For applicable personal auto policies, the chapter requires an appraisal provision and directs the Texas Department of Insurance to adopt implementing rules.

Texas Total-Loss Appraisal Law in 2026

Searches for “Texas total-loss appraisal law” or “Texas appraisal clause 2026” generally point to the same timing question: which policy term governs the claim? Chapter 1813 applies to an applicable policy delivered, issued for delivery, or renewed on or after January 1, 2026. The accident date alone does not answer that question. Check the declarations and renewal documents for the policy in force on the date of loss.

A policy may also contain an appraisal provision independent of Chapter 1813. If the statutory date requirement is not met, read the actual policy rather than assuming that appraisal is either available or unavailable.

What the Statute Requires

Chapter 1813 establishes the statutory framework, while the applicable policy and current TDI rules supply important process details. For an auto claim, review:

• Availability: Whether the policy term and policy type fall within Chapter 1813.
• Demand procedure: Who may demand appraisal and how notice must be given under the policy and applicable rules.
• Deadlines: The timing in the policy and any current implementing rules rather than a generalized deadline.
• Appraiser and umpire requirements: The qualifications, selection process, and procedures stated in the policy and current TDI rules.
• Binding effect: The chapter provides that an authorized amount-of-loss determination is binding, subject to statutory exceptions including fraud, lack of authority, and a material mistake.

Important Exclusions and Limitations

The statute has clear boundaries:

• It only determines the amount of loss. It does not decide coverage or liability.
• It applies to first-party claims under your own policy, not third-party claims against someone else's policy.
• An appraiser or umpire may not determine whether the policy covers the loss or what caused the loss.
• Appraiser and umpire fees should be evaluated under the applicable policy and current rules; do not assume a universal cost allocation.

How Chapter 1813 Relates to a Total-Loss Valuation

A total-loss valuation dispute usually concerns the amount of loss: the vehicle’s pre-loss actual cash value and related calculations. Before considering appraisal, request the complete valuation report, identify factual errors, and submit documented corrections. Appraisal may become relevant if a covered amount-of-loss disagreement remains, but it is not a substitute for resolving a coverage denial or third-party liability dispute.

Chapter 1813 Frequently Asked Questions