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