| 1 | 1 | | 88R23031 JES-D |
|---|
| 2 | 2 | | By: Thompson of Brazoria H.B. No. 1234 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the acknowledgment of rejection of residential property |
|---|
| 8 | 8 | | insurance coverage of cosmetic damage to a metal roof. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subchapter C, Chapter 2002, Insurance Code, is |
|---|
| 11 | 11 | | amended by adding Section 2002.104 to read as follows: |
|---|
| 12 | 12 | | Sec. 2002.104. METAL ROOF COVERAGE REJECTION |
|---|
| 13 | 13 | | ACKNOWLEDGMENT. (a) In this section: |
|---|
| 14 | 14 | | (1) "Cosmetic metal roof coverage" means insurance |
|---|
| 15 | 15 | | coverage under a residential property insurance policy for damage |
|---|
| 16 | 16 | | to a metal roof regardless of whether the damage impedes the |
|---|
| 17 | 17 | | function of the roof. |
|---|
| 18 | 18 | | (2) "Residential property insurance" has the meaning |
|---|
| 19 | 19 | | assigned by Section 2301.002. |
|---|
| 20 | 20 | | (b) This section applies to each insurer that provides |
|---|
| 21 | 21 | | cosmetic metal roof coverage in this state, including a county |
|---|
| 22 | 22 | | mutual insurance company, farm mutual insurance company, Lloyd's |
|---|
| 23 | 23 | | plan, and reciprocal or interinsurance exchange. |
|---|
| 24 | 24 | | (c) Except as provided by Subsection (d), an insurer that |
|---|
| 25 | 25 | | offers cosmetic metal roof coverage shall require an insured who |
|---|
| 26 | 26 | | rejects, declines, or refuses to accept that coverage under a |
|---|
| 27 | 27 | | residential property insurance policy issued to that insured to |
|---|
| 28 | 28 | | acknowledge in writing that the insured has rejected, declined, or |
|---|
| 29 | 29 | | refused to accept that coverage and that the insured's policy does |
|---|
| 30 | 30 | | not include cosmetic metal roof coverage. |
|---|
| 31 | 31 | | (d) An insurer is not required to obtain the acknowledgment |
|---|
| 32 | 32 | | required by Subsection (c) from an insured on a renewal or |
|---|
| 33 | 33 | | reinstatement of, or on the issuance of a supplement to, a |
|---|
| 34 | 34 | | residential property insurance policy for which the insurer has |
|---|
| 35 | 35 | | already obtained an acknowledgment under that subsection. |
|---|
| 36 | 36 | | SECTION 2. The change in law made by this Act applies only |
|---|
| 37 | 37 | | to a residential property insurance policy that is delivered, |
|---|
| 38 | 38 | | issued for delivery, or renewed on or after January 1, 2024. |
|---|
| 39 | 39 | | SECTION 3. This Act takes effect September 1, 2023. |
|---|