Property Insurance - Settlement of Claims and Notices

HB 283 establishes new rules for property insurance claims and policy renewals in Maryland. It requires insurers to calculate actual cash value for claims as the lesser of (1) repair/rebuild cost minus reasonable depreciation or (2) the policy limit, and explicitly prohibits counting labor costs (including rates, overhead, taxes, and fees) as depreciated value. The bill also mandates that insurers provide clear, written renewal notices at least 45 days before policy renewal if coverage limits, excluded risks, reduced coverage, or deductibles change. These provisions apply to residential and commercial property insurance policies renewed on or after October 1, 2026, directly affecting insurers and policyholders.