Maryland House Bill HB283

Maryland 2026 Regular Session

• Introduced: 1/14/26
• Refer: 1/14/26

Caption

Property Insurance - Settlement of Claims and Notices

Impact

The proposed bill addresses various components of property insurance law by requiring insurers to provide clear pre-renewal notifications to homeowners and renters about differences in coverage and deductibles compared to expiring policies. This transparency is expected to empower consumers, allowing them to make informed decisions regarding their insurance. Furthermore, the bill regulates what constitutes an unfair claim settlement practice, expanding the definitions to include failures by insurers to comply with the new provisions regarding actual cash value calculations.

Summary

House Bill 283 aims to establish clear guidelines for the calculation of the actual cash value in the settlement of first-party claims under residential and commercial property insurance policies. Specifically, it mandates that such policies, effective October 1, 2026, will determine the actual cash value recovery as the lesser of the repair or replacement costs minus a reasonable deduction for physical depreciation, or the insurance policy limit. This legislation intends to bring more clarity and fairness to the claims process, potentially benefiting policyholders and ensuring they are compensated fairly for losses.

Contention

While HB283 aims to improve the insurance claims process, there may be some contention regarding how insurers implement these new requirements. Insurers may express concerns over the potential increase in operational costs and the complexities introduced with the new regulations. Additionally, stakeholders in the insurance industry might argue against the perceived implications of elevated liability risks stemming from the new guidelines characterized as unfair claim settlement practices.