Relating to windstorm and hail insurance coverage issued by the FAIR Plan Association in catastrophe areas.
The repeal of Section 2211.156 of the Insurance Code signifies a significant alteration in how insurance coverage is managed in areas prone to windstorms and hail. With this repeal, the law as it existed prior to January 1, 2018, will apply to previously issued policies. This change is likely to provide clearer regulations and possibly enhance the accessibility and affordability of insurance for individuals residing in high-risk areas, thus benefiting homeowners impacted by these natural events.
SB1475 addresses windstorm and hail insurance coverage issued by the FAIR Plan Association for properties located in catastrophe areas. It aims to alter the current legislative framework governing these insurance policies, particularly in how they are renewed. The bill's effective date is set for September 1, 2017, indicating that changes will apply to policies initiated or renewed post that date. This legislative action primarily affects residential property insurance guidelines governed by Chapter 2211 of the Insurance Code in Texas.
While specific details on the contention surrounding SB1475 are not highlighted, issues related to insurance coverage in catastrophe areas are often contentious due to the financial implications on homeowners. Stakeholders may debate aspects such as the adequacy of coverage, premium rates, and the reliability of the FAIR Plan Association in providing sufficient protection. Concerns may also be raised about the affordability and availability of such insurance for those living in catastrophe-prone regions.