The Texas Department of Insurance has implemented House Bill 3310, which includes provisions for various deadlines required of the Texas Windstorm Insurance Association (TWIA) during their claims appraisal process. The Bill amends Section 2210.574 of the Texas Insurance Code, titled "Disputes Concerning Amount of Accepted Coverage," which then amends Rule §5.4211 of the TWIA Subchapter, titled "Appraisal Process." The amended Rule is in effect as of Jan 1, 2024. 

The Appraisal Process applies when the TWIA has accepted coverage for a claim and the claimant disputes the amount the Association has agreed to pay for the claim. Either party may request appraisal. The association must include an explanation of their appraisal process, and the claimant has the right to demand an independent appraisal. Each party must hire an appraiser who is independent and qualified. 

The amended rule adds a deadline for appraisal budget disclosure and naming an umpire, which states that within 15 days of the appraisers being named, the appraisers must disclose their projected fees to the parties and agree on an umpire. The umpire must be independent and qualified. If the appraisers are unable to agree to an umpire, the department may be asked to select one. 

A deadline for the appraiser agreement is also added, stating that appraisers must agree on the amount of loss within 90 days for residential claims, or within 120 days for commercial claims. A deadline for appraisal panel decisions is also added, for situations where an umpire is needed. For residential claims, the deadline is within 60 days of the selection of the umpire, and within 90 days for commercial claims. 

Finally, a subsection is added that allows for the extension of any of these deadlines. They may be extended by written agreement of the claimant and the Association, or can be extended by the commissioner.

Most property policies have an appraisal clause. Appraisals allow either party to have the claim reviewed and the amount of loss determined without filing suit. 

 

The adoption order can be found here.