85R13293 SCL-D
By: Faircloth H.B. No. 3510
A BILL TO BE ENTITLED
AN ACT
relating to replacement cost coverage in policies issued by the
Texas Windstorm Insurance Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2210.207(c) and (d), Insurance Code,
are amended to read as follows:
(c) If, at the time of the initial issuance of or a renewal
of the association policy [loss], the total amount of insurance
applicable to a dwelling is equal to 80 percent or more of the full
replacement cost of the dwelling or equal to the maximum amount of
insurance otherwise available through the association, coverage
applicable to the dwelling under the policy is extended to include
the full cost of repair or replacement, without a deduction for
depreciation.
(d) If, at the time of the initial issuance of or a renewal
of the association policy [loss], the total amount of insurance
applicable to a dwelling is equal to less than 80 percent of the
full replacement cost of the dwelling and less than the maximum
amount of insurance available through the association, liability
for loss under the policy may not exceed the replacement cost of the
part of the dwelling that is damaged or destroyed, less
depreciation.
SECTION 2. Section 2210.207, Insurance Code, as amended by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2018. A policy
delivered, issued for delivery, or renewed before January 1, 2018,
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2017.