Relating to payment of the replacement cost of lost or damaged property under a homeowner's, renter's, or condominium owner's insurance policy.

HB 854 requires Texas insurance companies to pay at least 80% of the estimated cost to repair or replace damaged or lost property (including homes, belongings, or condo units) within 30 days of a valid claim, minus the policyholder's deductible. This applies to homeowner, renter, and condominium insurance policies delivered, issued, or renewed on or after January 1, 2026. After repairs are completed and the deductible is paid, insurers must cover the remaining balance. The law caps payments at the actual cost to replace property with similar items, preventing overpayment. It affects all Texas residents with these insurance policies who file claims for covered property damage.