Relating to windstorm and hail insurance coverage issued by the FAIR Plan Association in catastrophe areas.
The enactment of HB1898 will alter the provisions applied to residential property insurance policies that fall under Chapter 2211 of the Insurance Code. The new law is applicable to policies delivered, issued, or renewed from January 1, 2020, onward, thereby creating a timeline for policy adaptations and changes in coverage terms. Policies that were delivered before this date will continue to be governed by the previous laws, potentially creating a transitional phase where different policies could have varying coverage stipulations based on their issuance dates.
House Bill 1898 pertains to the coverage of windstorm and hail insurance as issued by the FAIR Plan Association, specifically targeting catastrophe areas in Texas. The bill proposes repealing Section 2211.156 of the Insurance Code, which indicates a significant change in the legislative framework governing insurance policies related to wind and hail events. This bill is aimed at addressing concerns regarding adequate insurance coverage in regions that face high risks of such weather-related events, thereby providing more robust protection for residents and property owners in these vulnerable areas.
One notable point of contention surrounding HB1898 could revolve around the implications of repealing Section 2211.156. Stakeholders might express concerns regarding the adequacy of insurance coverage provided by the FAIR Plan Association, particularly in the context of natural disasters that disproportionately affect certain geographic areas. Critics may worry that the repeal could lead to reduced coverage options or increased premiums for residents, while supporters might argue that it streamlines the insurance process and better aligns it with contemporary risks faced by property owners in high-risk zones.