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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. |
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(a) In this section, "residential property insurance" has the |
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meaning assigned by Section 2301.002. |
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(b) This section applies to each insurer authorized to |
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engage in the business of residential property insurance in this |
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state, including a county mutual insurance company, farm mutual |
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insurance company, Lloyd's plan, and reciprocal or interinsurance |
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exchange. |
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(c) 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 if the insured property is |
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uninhabitable for a period of at least 24 hours. In this |
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subsection, "uninhabitable" includes a stoppage of water, |
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electricity, sewer, or natural gas service caused by a covered loss |
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on the insured's property. |
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(d) Coverage required by this section must begin not later |
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than 24 hours after the stoppage of the water, electricity, sewer, |
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or natural gas service. |
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(e) The commissioner may adopt rules to implement this |
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section. |
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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, 2024. |
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SECTION 3. This Act takes effect September 1, 2023. |