Texas House Bill HB3074

Texas 2019 - 86th Regular

Caption

Relating to the coverage of damage from tornadoes and wildfires by the Texas Windstorm Insurance Association.

Impact

The bill proposes modifications to the definition of insurable property, eligibility criteria for coverage, and the claims process after a disaster occurs. It requires that insurance policies issued by the TWIA contain specific clauses regarding the filing of claims and alternative dispute resolution processes. It is expected that these changes will provide a more structured approach to insurance claims, thereby aiding residents affected by catastrophes in recovering damages more efficiently.

Summary

House Bill 3074 addresses the coverage of damage from tornadoes and wildfires by the Texas Windstorm Insurance Association (TWIA). This legislation aims to amend various sections of the Insurance Code to expand and clarify the insurance offerings related to windstorm, hail, tornado, and wildfire damage. The overarching purpose of this bill is to ensure that adequate insurance coverage is accessible for residents in designated catastrophe areas, particularly where private insurance options may be limited or non-existent due to high risks associated with natural disasters.

Contention

One notable point of contention surrounding HB 3074 is the balance between providing necessary insurance coverage and the financial sustainability of the TWIA. Critics may raise concerns regarding potential increases in premiums or the quality of coverage available. Additionally, the bill outlines the conditions under which the TWIA may operate as a residual insurer, emphasizing that it should not compete directly with private insurers but rather serve those who cannot access affordable insurance through the voluntary market. Stakeholders may also debate the implications of the adjustments in rates and the terms of coverage for consumers seeking protection against natural disasters.