Texas House Bill HB1021

Texas 2009 - 81st Regular

Caption

Relating to coverage under residential property insurance policies for certain losses incurred because of compliance with an emergency evacuation order.

Impact

If enacted, HB1021 would significantly influence state laws regarding insurance coverage in the context of declared disasters. It establishes a requirement for insurers to offer specific types of coverage that would protect homeowners during emergencies. The bill is expected to enhance the financial security of residents facing evacuation, thereby contributing to an overall reduction in the stress associated with emergencies. However, the implementation may lead to discussions on how insurers will manage the associated risks and the potential impact on premium costs for policyholders.

Summary

House Bill 1021 aims to amend the Insurance Code of Texas by mandating that residential property insurance policies must include coverage for losses incurred due to compliance with emergency evacuation orders. This legislation acknowledges the financial burden that evacuees may face when forced to leave their homes during disasters, providing a framework for insurance companies to offer relevant coverage for such scenarios. The bill seeks to ensure that homeowners receive compensation for the duration of evacuation orders, fostering a safer residential environment during emergencies.

Contention

Notable points of contention may arise around how insurers interpret and manage coverage claims related to emergency evacuations. Issues such as the definition of a 'disaster' and the need for clarity around the terms of compensation during evacuation periods could be points of debate. Additionally, questions regarding financial liabilities for insurance companies and their ability to effectively price this new coverage may lead to concerns among stakeholders. Some legislators may argue for stronger regulations to safeguard consumer interests, while insurers might express apprehension about the potential for increased claims that could affect the insurance market.