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A BILL TO BE ENTITLED
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AN ACT
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relating to an endorsement for roof replacements to comply with |
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certain standards for residential property insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 2301, Insurance Code, is |
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amended by adding Section 2301.059 to read as follows: |
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Sec. 2301.059. MANDATORY OFFER OF ENDORSEMENT FOR ENHANCED |
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ROOF STANDARDS ON REPLACEMENT. (a) This section applies to each |
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insurer authorized to engage in the business of residential |
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property insurance or residential fire and allied lines insurance |
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in this state, including a capital stock insurance company, mutual |
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insurance company, county mutual insurance company, Lloyd's plan, |
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and reciprocal or interinsurance exchange. |
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(b) This section does not apply to: |
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(1) the Texas Windstorm Insurance Association; |
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(2) the FAIR Plan Association; or |
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(3) a commercial insurance policy. |
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(c) An insurer offering an insurance policy described by |
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Subsection (a) that includes replacement coverage for a roof shall |
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offer an endorsement providing that during a covered replacement of |
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the roof, the policy will provide coverage, subject to any |
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applicable deductions or policy provisions, to: |
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(1) replace the roof to meet one or more fortified home |
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roof standards adopted by the Institute for Business and Home |
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Safety or a successor organization; or |
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(2) replace the roof to meet another standard |
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submitted by the insurer and described by the policy. |
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(d) The enhanced coverage described by Subsection (c) |
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applies only if an insured elects to purchase the endorsement |
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described by that subsection. |
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(e) The endorsement described by Subsection (c) is subject |
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to an actuarially justified premium or rate charge. This subsection |
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does not require an insurer to charge an additional amount for the |
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endorsement. |
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(f) The commissioner may adopt rules necessary to implement |
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this section. The rules may not set or suggest a premium or rate |
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charge for the endorsement. |
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SECTION 2. Section 2301.059, 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, 2026. |
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SECTION 3. This Act takes effect September 1, 2025. |