88R13087 KBB-D
By: Thompson of Brazoria H.B. No. 1039
Substitute the following for H.B. No. 1039:
By: Oliverson C.S.H.B. No. 1039
A BILL TO BE ENTITLED
AN ACT
relating to coverage of additional living expenses under a
residential property insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2002, Insurance Code, is
amended by adding Section 2002.008 to read as follows:
Sec. 2002.008. ADDITIONAL LIVING EXPENSES COVERAGE.
(a) In this section, "residential property insurance" has the
meaning assigned by Section 2301.002.
(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) A residential property insurance policy that includes
coverage for additional living expenses must cover the additional
living expenses incurred by an insured if the insured property is
uninhabitable for a period of at least 24 hours. In this
subsection, "uninhabitable" includes a stoppage of water,
electricity, sewer, or natural gas service caused by a covered loss
on the insured's property.
(d) Coverage required by this section must begin not later
than 24 hours after the stoppage of the water, electricity, sewer,
or natural gas service.
(e) The commissioner may adopt rules to implement this
section.
SECTION 2. Section 2002.008, Insurance Code, as added by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2024.
SECTION 3. This Act takes effect September 1, 2023.