| 1 | 1 | | 86R1919 BEE-D |
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| 2 | 2 | | By: Oliverson H.B. No. 1382 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a disclosure regarding flood coverage under a |
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| 8 | 8 | | residential property insurance policy. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter C, Chapter 2002, Insurance Code, is |
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| 11 | 11 | | amended by adding Section 2002.103 to read as follows: |
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| 12 | 12 | | Sec. 2002.103. DISCLOSURE REGARDING FLOOD COVERAGE |
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| 13 | 13 | | REQUIRED. (a) In this section, "residential property insurance" |
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| 14 | 14 | | means insurance coverage against damage to or loss of residential |
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| 15 | 15 | | real or tangible personal property at a fixed location that is |
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| 16 | 16 | | provided through: |
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| 17 | 17 | | (1) a homeowners insurance policy, including a tenants |
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| 18 | 18 | | insurance policy; |
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| 19 | 19 | | (2) a condominium owners insurance policy; |
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| 20 | 20 | | (3) a residential fire and allied lines insurance |
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| 21 | 21 | | policy; |
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| 22 | 22 | | (4) a farm and ranch insurance policy; or |
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| 23 | 23 | | (5) a farm and ranch owners insurance policy. |
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| 24 | 24 | | (b) This section applies to each insurer authorized to |
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| 25 | 25 | | engage in the business of residential property insurance in this |
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| 26 | 26 | | state, including a county mutual insurance company, farm mutual |
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| 27 | 27 | | insurance company, Lloyd's plan, and reciprocal or interinsurance |
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| 28 | 28 | | exchange. |
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| 29 | 29 | | (c) An insurer that issues or renews a residential property |
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| 30 | 30 | | insurance policy that does not provide coverage against loss caused |
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| 31 | 31 | | by flooding shall include with the policy documents the following |
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| 32 | 32 | | statement in at least 18-point bold type: "FLOOD INSURANCE: YOU MAY |
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| 33 | 33 | | NEED TO CONSIDER THE PURCHASE OF FLOOD INSURANCE. YOUR RESIDENTIAL |
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| 34 | 34 | | PROPERTY INSURANCE POLICY DOES NOT INCLUDE COVERAGE FOR DAMAGE |
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| 35 | 35 | | RESULTING FROM FLOOD EVEN IF HURRICANE WINDS AND RAIN CAUSED THE |
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| 36 | 36 | | FLOOD TO OCCUR. WITHOUT SEPARATE FLOOD INSURANCE COVERAGE, YOU MAY |
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| 37 | 37 | | HAVE UNCOVERED LOSSES CAUSED BY FLOOD. PLEASE DISCUSS THE NEED TO |
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| 38 | 38 | | PURCHASE SEPARATE FLOOD INSURANCE COVERAGE WITH YOUR INSURANCE |
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| 39 | 39 | | AGENT." |
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| 40 | 40 | | SECTION 2. Section 2002.103, Insurance Code, as added by |
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| 41 | 41 | | this Act, applies only to an insurance policy delivered, issued for |
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| 42 | 42 | | delivery, or renewed on or after January 1, 2020. A policy |
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| 43 | 43 | | delivered, issued for delivery, or renewed before January 1, 2020, |
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| 44 | 44 | | is governed by the law as it existed immediately before the |
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| 45 | 45 | | effective date of this Act, and that law is continued in effect for |
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| 46 | 46 | | that purpose. |
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| 47 | 47 | | SECTION 3. This Act takes effect September 1, 2019. |
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