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A BILL TO BE ENTITLED
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AN ACT
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relating to coverage of additional living expenses under a |
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residential property insurance policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is |
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amended by adding Section 2002.008 to read as follows: |
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Sec. 2002.008. ADDITIONAL LIVING EXPENSES COVERAGE. (a) |
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This section applies to each insurer authorized to engage in the |
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business of residential property insurance in this state, including |
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a county mutual insurance company, farm mutual insurance company, |
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Lloyd's plan, and reciprocal or interinsurance exchange. |
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(b) A residential property insurance policy that includes |
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coverage for additional living expenses must cover the additional |
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living expenses incurred by an insured because the insured property |
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is uninhabitable due to a stoppage of water, electricity, sewer, or |
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natural gas services for a period of at least 24 hours. |
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SECTION 2. Section 2002.008, Insurance Code, as added by |
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this Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after January 1, 2022. |
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SECTION 3. This Act takes effect September 1, 2021. |