Texas House Bill HB3429

Texas 2017 - 85th Regular

Caption

Relating to windstorm and hail insurance coverage issued by the FAIR Plan Association in catastrophe areas.

Impact

The bill will repeal an existing section (Section 2211.156) of the Insurance Code, leading to significant changes for residential property insurance policies starting from January 1, 2018. By altering this legal framework, HB3429 is expected to create a more favorable environment for insurance companies, thereby potentially offering more competitive rates for consumers in catastrophe-prone areas. Homeowners may find it easier to secure necessary coverage as the bill encourages adherence to standardized practices within the FAIR Plan Association.

Summary

House Bill 3429 aims to modify the laws governing windstorm and hail insurance coverage provided by the FAIR Plan Association in areas designated as catastrophe zones. This legislation seeks to enhance the stability and availability of insurance products in regions particularly vulnerable to wind and hail damage, which is essential for homeowners and businesses alike. The bill's provisions are set to impact how insurance policies are issued, renewed, and managed under the Texas Insurance Code, specifically targeting the statutes under Chapter 2211.

Contention

Discussions around HB3429 may touch upon the balance between adequate coverage for consumers and the financial viability of insurance providers. While proponents argue that streamlining insurance offerings will benefit residents in disaster-hit areas, critics may raise concerns about the adequacy of coverage and whether this reform addresses specific needs of high-risk populations. The long-term implications of repealing existing legislative protections under the old framework will be an essential point of contention among stakeholders, particularly in how it may affect policy pricing and accessibility.