Texas Senate Bill 458

What Senate Bill 458 Changed

Texas Senate Bill 458 was signed into law and added Chapter 1813 to the Texas Insurance Code. The chapter addresses appraisal provisions in applicable personal automobile and residential property insurance policies. This guide focuses on the bill’s relevance to personal auto total-loss claims.

How SB 458 Created Chapter 1813

The bill added Chapter 1813 to the Insurance Code. For applicable personal auto policies delivered, issued for delivery, or renewed on or after January 1, 2026, the chapter requires an appraisal provision. It also directs TDI to adopt rules addressing process details such as qualifications and selection of appraisers and umpires and applicable deadlines. The current policy and effective rules must be reviewed together.

SB 458, Chapter 1813, and the Texas Appraisal Clause in 2026

SB 458 is the bill; Chapter 1813 is the law placed in the Texas Insurance Code. For a 2026 total-loss claim, the key applicability fact is the date the relevant personal auto policy was delivered, issued for delivery, or renewed—not simply that the claim happened in 2026. The policy’s own appraisal language and the circumstances of the claim must still be reviewed.

The legislation does not set a vehicle’s value and does not make every insurance dispute appraisable. It establishes a process for qualifying amount-of-loss disagreements. A policyholder should still begin by auditing the valuation report and documenting specific errors in the vehicle profile, comparables, condition, mileage, or adjustments.

Which Policies May Be Covered

• Applicable personal automobile insurance policies delivered, issued for delivery, or renewed in Texas on or after January 1, 2026.
• The broader chapter also addresses applicable residential property policies, although this page does not analyze property claims.
• For an auto claim, the actual policy type, policy term, coverage, and nature of the dispute must be reviewed.

What Appraisal Can and Cannot Decide

Under SB 458 and Chapter 1813, appraisal is limited in scope:

• Can decide: The amount of a covered loss — for example, the actual cash value of a totaled vehicle.
• Cannot decide: Coverage questions, liability, fault, whether the policy was in force, or other policy disputes.
• An appraisal award is generally binding on the policyholder and insurer as to the amount of loss.
• Limited exceptions exist for fraud, an award made without authority, or a relevant material mistake.

Commercial Policies

Chapter 1813 does not apply to commercial insurance policies. If your vehicle was insured under a commercial policy, your appraisal rights depend entirely on your specific policy language and applicable law, not on SB 458 or Chapter 1813.

TDI Rulemaking

Senate Bill 458 directed the Texas Department of Insurance (TDI) to adopt rules implementing Chapter 1813. Rulemaking status can change. Consult TDI’s official rules pages and the current policy language rather than relying on a summary of a proposed or prior rule.

Review Your Policy

Whether SB 458 and Chapter 1813 apply to your specific claim depends on:

SB 458 Frequently Asked Questions

• Your policy's effective or renewal date
• The type of policy (personal vs. commercial)
• The language in your actual policy documents
• The nature of your claim (first-party vs. third-party)
• Any applicable TDI rules in effect at the time of your claim

Always review your actual policy and consult a qualified Texas professional before concluding that appraisal is or is not available under your circumstances.