86R1379 BEE-D
By: Perez H.B. No. 283
A BILL TO BE ENTITLED
AN ACT
relating to a disclosure regarding flood coverage under a
commercial or 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:
(1) "Commercial property insurance" means insurance
coverage against damage to or loss of real or tangible personal
property at a fixed location that is provided through:
(A) a commercial fire or allied lines insurance
policy; or
(B) as authorized by commissioner rule, a
commercial property insurance policy covering other perils or
providing other coverages or other lines of first party property
insurance.
(2) "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:
(A) a homeowners insurance policy, including a
tenants insurance policy;
(B) a condominium owners insurance policy;
(C) a residential fire and allied lines insurance
policy;
(D) a farm and ranch insurance policy; or
(E) a farm and ranch owners insurance policy.
(b) This section applies to each insurer authorized to
engage in the business of commercial or 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 a commercial or residential
property insurance policy that does not provide coverage against
loss caused by flooding shall include at the top of the policy's
declarations page the following statement: "WARNING: THIS POLICY
DOES NOT PROVIDE COVERAGE AGAINST LOSS CAUSED BY FLOODING."
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.