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A BILL TO BE ENTITLED
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AN ACT
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relating to the right of a landlord to require a tenant to obtain |
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liability insurance as a condition of residential tendency: |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 92, Property Code, is |
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amended by adding Section 92.021 to read as follows: |
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Sec. 92.021. LIABILITY INSURANCE. (a) A landlord who rents |
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a dwelling shall not require a tenant to obtain a liability |
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insurance policy as a condition of tenancy, or take any adverse |
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action against a tenant for failing to obtain an insurance policy. |
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(b) A landlord may notify a tenant of the availability of a |
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liability insurance policy that insures the contents of the |
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premises against damage or loss so long as the tenant is given a |
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separate disclosure in 14 point type three days prior to the |
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earliest of the execution of any agreement with the landlord, the |
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payment of any funds to the landlord, or moving into the premises |
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that: |
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(1) explains the specific type of insurance policy |
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required to be obtained by the tenant, and the result of the failure |
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of the tenant to retain insurance during the term of the lease; |
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(2) the cost of such a policy for the term of the lease |
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if provided by the landlord, and the cost of such a policy with at |
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least two other insurance carriers that provide a policy with |
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similar terms; |
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(3) the terms of the policy; and |
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(4) the contact information for the Texas Department |
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of Insurance. |
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(c) In order to demonstrate compliance with subsection (b), |
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a landlord must have a copy of the notice delivered to the tenant |
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with the tenant's signature acknowledging receipt of the notice and |
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the date of receipt. |
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SECTION 2. This Act applies only to a lease that is first |
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entered into on or after the effective date of this Act. A lease |
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entered into or renewed before the effective date of this Act is |
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governed by the law that applied to the lease immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |