By: Phillips H.B. No. 3579
A BILL TO BE ENTITLED
AN ACT
relating to coverage for water damage claims for re
sidential
property insurance policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2002, Insurance Code is
amended to add the following section:
Sec. 2002.007. Coverage for Residential Property Water
Damage Claims. (a) If a residential property policy, including an
endorsement, provides coverage for loss resulting from continuous
or repeated seepage or leakage of water or steam, the policy must
not restrict coverage, and the insurer must not deny a claim, based
on the duration of the seepage or leakage if an insured notifies
the insurer no later than 30 days after the loss was discovered or
should have been discovered.
(b) The insurer must provide a written disclosure to the
policyholder that clearly describes the 30-day notice requirement
in subsection (a) of this section. The insurer must include the
disclosure on the declarations page, or a separate disclosure page
provided to the policyholder with the declarations page.
(c) This section applies to an insurer as defined in Section
544.352(2), writing residential property insurance as defined in
Section 544.352(3) in this state.
(d) The commissioner may adopt rules as necessary to
implement this section.
SECTION 2. Section 2002.007, Insurance Code, as amended by
this Act, applies only to an insurance policy that is 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 January 1, 2018.