86R1919 BEE-D
By: Oliverson H.B. No. 1382
A BILL TO BE ENTITLED
AN ACT
relating to a disclosure regarding flood coverage under a
residential property insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 2002, Insurance Code, is
amended by adding Section 2002.103 to read as follows:
Sec. 2002.103. DISCLOSURE REGARDING FLOOD COVERAGE
REQUIRED. (a) In this section, "residential property insurance"
means insurance coverage against damage to or loss of residential
real or tangible personal property at a fixed location that is
provided through:
(1) a homeowners insurance policy, including a tenants
insurance policy;
(2) a condominium owners insurance policy;
(3) a residential fire and allied lines insurance
policy;
(4) a farm and ranch insurance policy; or
(5) a farm and ranch owners insurance policy.
(b) This section applies to each insurer authorized to
engage in the business of residential property insurance in this
state, including a county mutual insurance company, farm mutual
insurance company, Lloyd's plan, and reciprocal or interinsurance
exchange.
(c) An insurer that issues or renews a residential property
insurance policy that does not provide coverage against loss caused
by flooding shall include with the policy documents the following
statement in at least 18-point bold type: "FLOOD INSURANCE: YOU MAY
NEED TO CONSIDER THE PURCHASE OF FLOOD INSURANCE. YOUR RESIDENTIAL
PROPERTY INSURANCE POLICY DOES NOT INCLUDE COVERAGE FOR DAMAGE
RESULTING FROM FLOOD EVEN IF HURRICANE WINDS AND RAIN CAUSED THE
FLOOD TO OCCUR. WITHOUT SEPARATE FLOOD INSURANCE COVERAGE, YOU MAY
HAVE UNCOVERED LOSSES CAUSED BY FLOOD. PLEASE DISCUSS THE NEED TO
PURCHASE SEPARATE FLOOD INSURANCE COVERAGE WITH YOUR INSURANCE
AGENT."
SECTION 2. Section 2002.103, Insurance Code, as added by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2020. A policy
delivered, issued for delivery, or renewed before January 1, 2020,
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, 2019.