By: Manuel H.B. No. 5276

A BILL TO BE ENTITLED

AN ACT

relating to residential property insurance coverage issued by the Texas Windstorm Insurance Association for low-income housing.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter E, Chapter 2210, Insurance Code, is amended by adding Section 2210.211 to read as follows:

Sec. 2210.211. RESIDENTIAL PROPERTY INSURANCE: COVERAGE FOR LOW-INCOME HOUSING. (a) In this section, "low income" means a household with a combined income that is not less than 31 percent and not more than 80 percent of the area median income.

(b) To be eligible for coverage under this section, a person must:

(1) have a low income and reside in the catastrophe area; or

(2) provide housing with the insurable property to persons with a low income in the catastrophe area.

(c) An eligible person who has an insurable interest in insurable property may apply to the association for residential property insurance coverage, including windstorm and hail coverage, and an inspection to the property, subject to any rules established by the board of directors and approved by the commissioner.

(d) On receipt of a completed application under this section that complies with all applicable rules and on payment of the premium in full or in part as authorized under Section 2210.2032, the association shall direct the issuance of a residential property insurance policy.

(e) The commissioner shall adopt rules necessary to implement this section, including rules that:

(1) require premiums and other cost-sharing requirements for a policy issued under this section to be affordable to persons with a low income;

(2) prescribe inspection requirements necessary for issuing a policy under this section; and

(3) prescribe the terms of a policy issued under this section.

SECTION 2. This Act takes effect September 1, 2023.