Relating to recoverable depreciation for property damage claims under an insurance policy.

SB 2575 requires insurance policies covering property damage to allow policyholders to recover depreciation withheld from claims until two years after the claim payment date. This directly affects homeowners and businesses filing property damage claims under such policies. The bill mandates that this recoverable depreciation cannot be counted toward an insurer's defense costs or deducted from coverage limits. It applies only to policies delivered, issued, or renewed on or after January 1, 2026, with the law taking effect September 1, 2025.