88R13087 KBB-D
 
  By: Thompson of Brazoria H.B. No. 1039
 
  Substitute the following for H.B. No. 1039:
 
  By:  Oliverson C.S.H.B. No. 1039
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to coverage of additional living expenses under a
  residential property 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 2002.008 to read as follows:
         Sec. 2002.008.  ADDITIONAL LIVING EXPENSES COVERAGE.
  (a)  In this section, "residential property insurance" has the
  meaning assigned by Section 2301.002.
         (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)  A residential property insurance policy that includes
  coverage for additional living expenses must cover the additional
  living expenses incurred by an insured if the insured property is
  uninhabitable for a period of at least 24 hours.  In this
  subsection, "uninhabitable" includes a stoppage of water,
  electricity, sewer, or natural gas service caused by a covered loss
  on the insured's property.
         (d)  Coverage required by this section must begin not later
  than 24 hours after the stoppage of the water, electricity, sewer,
  or natural gas service.
         (e)  The commissioner may adopt rules to implement this
  section.
         SECTION 2.  Section 2002.008, 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.