Texas Senate Bill SB807

Texas 2019 - 86th Regular

Caption

Relating to property insurance coverage for and the appraisal of certain condominium properties.

Impact

By mandating periodic appraisals and regular updates on insurance status, SB807 potentially affects how condominium associations manage their properties and communicate with owners. It is designed to ensure that associations proactively manage and disclose the necessary insurance coverage, thus enhancing the security and confidence of property owners. The requirement for an independent appraisal every 36 months also establishes a standardized process for evaluating property value and insurance adequacy, which could have implications for how associations budget and plan financially in the long term.

Summary

SB807 proposes amendments to the Texas Property Code specifically addressing property insurance coverage for condominium properties. This bill aims to enhance transparency for unit owners by requiring condominium associations to provide an annual summary of insurance coverage details, including coverage amounts and a comparison to applicable insurance requirements. This new measure is intended to keep unit owners informed about their coverage and potential gaps in insurance that could affect their property investments.

Contention

The bill has generated discussion regarding the financial burden it may impose on smaller condominium associations, which may struggle to fulfill the independent appraisal requirement. Critics argue that this could lead to increased costs for unit owners if associations raise fees to cover new expenses. Furthermore, the necessity of providing written summaries to owners may lead to additional administrative workload, which some associations may find challenging, particularly with limited resources. Proponents of the bill, however, believe that the benefits of enhanced transparency and accountability outweigh these concerns.