Texas House Bill HB911

Texas 2009 - 81st Regular

Caption

Relating to adoption of a temporary program for the operation and funding of the Texas Windstorm Insurance Association.

Impact

The bill significantly alters the landscape of windstorm insurance in Texas by ensuring that properties that do not meet certain safety and building standards are effectively excluded from coverage. This creates a more stringent regulatory framework for insurable properties, impacting homeowners and landlords who may not comply with local building codes. Furthermore, the requirement of flood insurance for properties in high-risk zones adds another layer of financial responsibility for policyholders, potentially limiting access to insurance in problematic areas while ensuring better financial preparedness for catastrophic events.

Summary

House Bill 911 establishes a temporary framework for the Texas Windstorm Insurance Association (TWIA) aimed at managing the operation and funding of windstorm insurance in Texas. This legislation addresses the coverage of properties located in catastrophe areas, emphasizing the importance of compliance with building codes for properties to be considered insurable. The law delineates between residential and commercial properties and sets clear eligibility criteria for coverage, focusing primarily on owner-occupied residences and specific conditions under which properties can be insured against windstorm damage.

Contention

Discussions surrounding HB 911 indicate potential contention points regarding local governance and the ability to regulate insurance practices that directly affect vulnerable communities. Critics may argue that the strict eligibility criteria and the focus on owner-occupied properties disproportionately impact low-income residents and renters who may rely on properties that do not meet the stringent qualifications set forth. Additionally, the requirement for flood insurance ties the bill to broader discussions about climate change and disaster preparedness, raising concerns about the economic implications for communities that are already at risk.