| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to a disclosure regarding flood coverage under a |
|
|
residential property insurance policy. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter C, Chapter 2002, Insurance Code, is |
|
|
amended by adding Section 2002.103 to read as follows: |
|
|
Sec. 2002.103. DISCLOSURE REGARDING FLOOD COVERAGE |
|
|
REQUIRED. (a) In this section, "residential property insurance" |
|
|
means insurance coverage against damage to or loss of residential |
|
|
real or tangible personal property at a fixed location that is |
|
|
provided through: |
|
|
(1) a homeowners insurance policy, including a tenants |
|
|
insurance policy; |
|
|
(2) a condominium owners insurance policy; |
|
|
(3) a residential fire and allied lines insurance |
|
|
policy; |
|
|
(4) a farm and ranch insurance policy; or |
|
|
(5) a farm and ranch owners insurance policy. |
|
|
(b) 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, farm mutual |
|
|
insurance company, Lloyd's plan, and reciprocal or interinsurance |
|
|
exchange. |
|
|
(c) An insurer that issues or renews a residential property |
|
|
insurance policy that does not provide coverage against loss caused |
|
|
by flooding shall include with the policy documents the following |
|
|
statement in at least 18-point bold type: "FLOOD INSURANCE: YOU MAY |
|
|
NEED TO CONSIDER THE PURCHASE OF FLOOD INSURANCE. YOUR RESIDENTIAL |
|
|
PROPERTY INSURANCE POLICY DOES NOT INCLUDE COVERAGE FOR DAMAGE |
|
|
RESULTING FROM FLOOD EVEN IF HURRICANE WINDS AND RAIN CAUSED THE |
|
|
FLOOD TO OCCUR. WITHOUT SEPARATE FLOOD INSURANCE COVERAGE, YOU MAY |
|
|
HAVE UNCOVERED LOSSES CAUSED BY FLOOD. PLEASE DISCUSS THE NEED TO |
|
|
PURCHASE SEPARATE FLOOD INSURANCE COVERAGE WITH YOUR INSURANCE |
|
|
AGENT." |
|
|
SECTION 2. Section 2002.103, Insurance Code, as added by |
|
|
this Act, applies only to an insurance policy delivered, issued for |
|
|
delivery, or renewed on or after January 1, 2020. A policy |
|
|
delivered, issued for delivery, or renewed before January 1, 2020, |
|
|
is governed by the law as it existed immediately before the |
|
|
effective date of this Act, and that law is continued in effect for |
|
|
that purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2019. |