Texas House Bill HB5276

Texas 2023 - 88th Regular

• Filed: 3/10/23

Caption

Relating to residential property insurance coverage issued by the Texas Windstorm Insurance Association for low-income housing.

Impact

This legislation is significant for state laws as it seeks to amend the existing insurance code to include provisions that ensure low-income residents have access to affordable property insurance. By requiring the Texas Windstorm Insurance Association to issue policies that cater to this demographic, it aims to protect low-income families from the financial repercussions of windstorm and hail damage that often accompany such catastrophes. Implementing affordable premium rates and inspection requirements further emphasizes the bill's intention to create a safety net for at-risk communities.

Summary

House Bill 5276 aims to provide accessible residential property insurance coverage issued by the Texas Windstorm Insurance Association specifically for low-income households. The bill defines low-income as a household making between 31 percent and 80 percent of the area median income. Eligible individuals can apply for insurance coverage that includes windstorm and hail damage within designated catastrophe areas, thereby addressing the needs of vulnerable populations residing in high-risk locations.

Sentiment

Overall, the sentiment towards HB 5276 appears to be supportive, particularly among advocates who focus on housing and economic equality. Proponents argue that the bill is a critical step toward ensuring equitable access to essential insurance services for low-income families, thereby promoting community resilience. However, concerns about the feasibility and execution of the bill—such as whether the policies will genuinely remain affordable—could lead to potential debates among legislators.

Contention

One notable point of contention centers around the implementation aspects of the bill, particularly regarding how 'affordable' premiums will be determined and maintained. Some stakeholders might question the Texas Windstorm Insurance Association's capacity to adequately manage these new responsibilities while keeping costs low. Additionally, there may be discussions on how effective the inspection requirements are in practice, and whether they might inadvertently create barriers for those seeking coverage.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 2210. Texas Windstorm Insurance Association
  • Section: New Section