Monitoring the Session

HB 854

bill requiring 80 percent replacement cost paid up front

Did not pass

Verdict: No flags

No flagsInitial review
Rep. Cassandra Garcia HernandezDHouse 115

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

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

Caption from analyzed text · version I.

Summary

On a valid claim, minus the deductible.

The bill requires homeowner's, renter's, and condo owner's insurance policies with replacement cost coverage to pay at least 80 percent of the estimated repair or replacement cost, minus the deductible, up front on a valid claim. It covers every insurer selling residential property insurance in Texas, including county mutuals, Lloyd's plans, and reciprocal exchanges. Once the repair or replacement is documented as done and the deductible is paid, the insurer must pay the rest, capped at the full replacement cost, for policies issued or renewed on or after January 1, 2026.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R HB 287 by Rep. Julie Johnson (Did not pass) and this bill (Did not pass). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 287 by Rep. Julie Johnson (Did not pass). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.ACROSS THE AISLE. Joint authors: 1 Republican, 2 Democrats. Party as the Legislative Reference Library lists it for the 89th Legislature.GOT HALFWAY. Passed the House on May 13, 2025. Died in the Senate: received, never referred to a committee.

Receipt

The receipt

89R-HB854 · 2024-11-12

SOLD BY

Rep. Cassandra Garcia HernandezDHouse 115 Rep. Matt MorganRHouse 26 Rep. Mihaela PlesaDHouse 70

ITEM

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

WHAT IT DOES

On a valid claim, minus the deductible.

The bill requires homeowner's, renter's, and condo owner's insurance policies with replacement cost coverage to pay at least 80 percent of the estimated repair or replacement cost, minus the deductible, up front on a valid claim. It covers every insurer selling residential property insurance in Texas, including county mutuals, Lloyd's plans, and reciprocal exchanges. Once the repair or replacement is documented as done and the deductible is paid, the insurer must pay the rest, capped at the full replacement cost, for policies issued or renewed on or after January 1, 2026.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · May 5, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Insurance
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Committee substitute considered in committee
  7. Testimony taken/registration(s) recorded in committee
  8. Left pending in committee
  9. Considered in formal meeting
  10. Committee substitute considered in committee
  11. Reported favorably as substituted
  12. Comte report filed with Committee Coordinator
  13. Committee report distributed
  14. Committee report sent to Calendars
  15. Considered in Calendars
  16. Placed on General State Calendar
  17. Read 2nd time
  18. Passed to engrossment
  19. Record vote RV#2232
  20. Statement(s) of vote recorded in Journal
  21. Read 3rd time
  22. Postponed 5/13/25 3:00 PM
  23. Laid out as postponed business
  24. Passed
  25. Record vote RV#2338
  26. Statement(s) of vote recorded in Journal
  27. Reported engrossed
  28. Received from the House
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 88 yea · 33 nay

Sources

House: Final passage · May 13, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Cassandra Garcia Hernandez

Donors

Texas Trial Lawyers Association PAC$23KHernandez Law Group$11KTexas Healthcare Neck & Back Clinics PA$10K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 27, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Trial Lawyers Association PAC$22,500.00

Texas Trial Lawyers Association PAC

$22,500.00

Cash
$22,500.00
Paid by others
$0.00
Total
$22,500.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 29, 2024 to Oct 8, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100988470, 101011363, 101033777, 101073006.

Hernandez Law Group$11,000.00

Hernandez Law Group

$11,000.00

Cash
$11,000.00
Paid by others
$0.00
Total
$11,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Jun 29, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Jun 29, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101062154, 101073006.

Texas Healthcare Neck & Back Clinics PA$10,000.00

Texas Healthcare Neck & Back Clinics PA

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Jun 30, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Jun 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101062154.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Trial Lawyers Association PAC

$22,500.00

Cash
$22,500.00
Paid by others
$0.00
Total
$22,500.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 29, 2024 to Oct 8, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100988470, 101011363, 101033777, 101073006.

×

Hernandez Law Group

$11,000.00

Cash
$11,000.00
Paid by others
$0.00
Total
$11,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Jun 29, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Jun 29, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101062154, 101073006.

×

Texas Healthcare Neck & Back Clinics PA

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · on Jun 30, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Jun 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101062154.

Votes2

House May 13, 2025

Yea
88
Nay
33
Present, not voting
2
Absent
9
Excused
18
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2338

HB 854 was passed by (Record 2338): 88 Yeas, 33 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 88 (published)
  • Nay: 33 (published)
  • Present, not voting: 2 (published)
  • Absent: 9 (derived from named list)
  • Excused: 18 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 12, 2025

Yea
89
Nay
52
Present, not voting
2
Absent
2
Excused
5
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2232

CSHB 854 was passed to engrossment by (Record 2232): 89 Yeas, 52 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 89 (published)
  • Nay: 52 (published)
  • Present, not voting: 2 (published)
  • Absent: 2 (derived from named list)
  • Excused: 5 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses14
For
8
Against
5
On
1
Names

For

  • AARP Texas1 registration
  • Self1 registration
  • Self; American Adjuster Association1 registration
  • Self; Independent Insurance Agents of Texas1 registration
  • Texas Association of Public Insurance Adjusters (TAPIA)1 registration
  • Texas Realtors1 registration
  • Texas Trial Lawyers Association1 registration
  • Texas Watch1 registration

Against

  • American Property Casualty Insurance Association (APCIA)1 registration
  • Chubb, Inc.1 registration
  • Insurance Council of Texas1 registration
  • National Association of Mutual Insurance Companies1 registration
  • Texas Coalition for Affordable Insurance Solutions1 registration

On

  • Texas Department of Insurance1 registration
Sources

14 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · May 5, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 287

by Rep. Julie Johnson, different lead author · Did not pass · same text

Introduced text

Last action, May 15, 2023: Received from the House

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

Caption, 88R bill history

Sources

Texas House · Filed Nov 12, 2024

05/14/2025 S Received from the House

Texas Legislature Online · Introduced · House Committee Report · Engrossed

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Insurance · Committee vote 6 aye, 2 nay, 1 absent · Out of committee

Subjects

Insurance--Insurers & Agents

Insurance--Property & Casualty

Property Interests--Personal Property

Text

The text as introduced · 265 words

By: Garcia Hernandez
H.B. No. 854

A BILL TO BE ENTITLED

AN ACT

relating to payment of the replacement cost of lost or damaged

property under a homeowner's, renter's, or condominium owner's

insurance policy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is

amended by adding Section 2002.007 to read as follows:

Sec. 2002.007. REPLACEMENT COST COVERAGE REQUIREMENTS. (a)

This section applies to each insurer authorized to engage in the

business of residential property insurance in this state, including

a county mutual insurance company, Lloyd's plan, and reciprocal or

interinsurance exchange.

(b) A homeowner's, renter's, or condominium owner's

insurance policy that includes replacement cost coverage must

provide that in a valid claim for loss of or damage to insured

property, the insurer must make an initial payment of not less than

80 percent of the estimated cost to repair or replace the lost or

damaged dwelling or personal property minus the applicable

deductible.

(c) On documentation provided to the insurer that repair or

replacement is completed and on payment of the applicable

deductible, the insurer shall make the remaining payment due after

the initial payment.

(d) An insurer is not required to pay more than the total

cost to replace the lost or damaged dwelling or personal property

with property of a like kind and quality.

SECTION 2. Section 2002.007, Insurance Code, as added by

this Act, applies only to an insurance policy delivered, issued for

delivery, or renewed on or after January 1, 2026.

SECTION 3. This Act takes effect September 1, 2025.