85R12717 PMO-D
By: West S.B. No. 1418
A BILL TO BE ENTITLED
AN ACT
relating to a landlord's duty to maintain property and casualty
insurance coverage for loss of or damage to a leased premises.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 92.054, Property Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) A landlord shall obtain and maintain coverage under a
property and casualty insurance policy that provides coverage for
loss of or damage to a leased premises. The policy must provide
replacement cost coverage.
SECTION 2. Subchapter B, Chapter 92, Property Code, is
amended by adding Section 92.063 to read as follows:
Sec. 92.063. TENANT'S REMEDY FOR LANDLORD'S FAILURE TO
MAINTAIN INSURANCE. (a) A landlord is liable to a tenant for
failure to maintain insurance if:
(1) the property leased by the tenant suffers a
casualty loss or damage caused by a peril for which the landlord
could have obtained coverage under a property and casualty
insurance policy and for which the landlord did not maintain
coverage in accordance with Section 92.054(a-1); and
(2) the tenant is displaced because of the casualty
loss or damage.
(b) A landlord who is liable to a tenant under Subsection
(a) shall pay to the tenant all reasonable expenses related to the
tenant's relocation as a result of the displacement described by
Subsection (a)(2) to a dwelling comparable to the damaged premises
under comparable lease terms.
SECTION 3. Sections 92.054(a-1) and 92.063, Property Code,
as added by this Act, apply only to loss or damage that occurs on or
after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2017.