88R761 JES-D
 
  By: Johnson of Dallas H.B. No. 287
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to payment of the replacement cost of 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 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 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 lost or damaged 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, 2024.
         SECTION 3.  This Act takes effect September 1, 2023.