Texas Law

Texas Insurance Code Chapter 1813, Explained

Chapter 1813 — created by Senate Bill 458 (89th Texas Legislature) — makes the auto insurance appraisal clause mandatory instead of optional, effective January 1, 2026. Here's what's confirmed, what's still being verified, and what it actually means for a Texas claim.

What Actually Changed

Before Chapter 1813, appraisal clauses varied policy to policy, and some insurers argued the clause wasn't available until both sides were at a complete impasse — a procedural stall tactic. Chapter 1813 removes that ambiguity for personal auto and residential property policies:

Two Dates to Know

January 1, 2026 — In Effect

Chapter 1813 requires an appraisal provision in every personal auto and residential property policy issued or renewed in Texas on or after this date. This is confirmed and settled — not a proposal.

September 1, 2026 — TDI's Rule

The Texas Department of Insurance's procedural rule (28 TAC §§5.9800–5.9806, Docket 2862) — which sets the specific deadlines and appraiser/umpire qualifications — was targeted to take effect on this date. We confirm the current, applicable status of this rule as part of every free review, since implementation timing can shift right up to a rule's effective date.

The Deadline Framework

TDI's rule under Docket 2862 sets out a specific sequence: a written demand window, a period for each side to name an appraiser, a period for the appraisers to try to agree, and an outer deadline once an umpire is involved. Two of these figures have been consistent across every draft and version of the rule: a 120-day demand window from the insurer's notice, and a 20-day window for each side to name its appraiser after a demand is made.

The remaining deadlines — how long appraisers have to agree before an umpire is required, and the outer limit once an umpire is engaged — have been reported differently across sources during the rule's drafting process. Rather than publish a specific number we can't fully verify as final, we confirm the exact current deadlines that apply to your claim as part of every free review.

The Umpire Selection Fight

One provision has drawn real pushback during TDI's rulemaking process: an early draft would have let insurers pre-select a vendor-based umpire mechanism inside the policy, before any dispute even exists. Public adjusters, attorneys, and consumer advocates raised concerns that this lets a carrier shape the umpire pool in its own favor. Kingdom First's position is straightforward: when appraisers can't agree, judicial appointment of the umpire — not a carrier's preferred vendor network — is what keeps the process genuinely independent.

How Kingdom First Helps

We invoke the Chapter 1813 appraisal clause on your behalf, name a qualified appraiser, and push for judicial appointment of the umpire when the two sides can't agree — across total loss, repair, and diminished value disputes.

Frequently Asked Questions

Does Chapter 1813 apply to my current policy?
It applies to personal auto and residential property policies issued or renewed in Texas on or after January 1, 2026. If your policy hasn't renewed since that date, check your most recent declarations page — the appraisal provision is added at renewal, not retroactively to an existing term.
Do I need a lawyer to invoke appraisal?
In most cases, no. Either party can demand appraisal directly, and a licensed public adjuster can manage the demand, appraiser selection, and documentation on your behalf. A lawyer becomes necessary mainly when coverage itself — not just the amount — is in dispute.
What if my insurer wants to use their own umpire vendor?
Some carrier policy language attempts to pre-select an umpire mechanism before any dispute exists. Our default position pushes for judicial appointment of the umpire instead, to keep the process independent — this is an area still being actively debated in TDI's rulemaking.
Is appraisal the same as suing my insurance company?
No. Appraisal is a contractual alternative to litigation — it resolves the dollar amount of a covered loss without a lawsuit. It does not decide coverage questions, such as whether a loss is covered at all.

Think Your Offer Came in Low? Let's Look at It.

We review your insurer's valuation or repair estimate, tell you plainly whether appraisal is worth invoking, and handle the process if it is.

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