| 1 | 1 | | 89R15496 DNC-D |
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| 2 | 2 | | By: Oliverson H.B. No. 4532 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to an endorsement for roof replacements to comply with |
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| 10 | 10 | | certain standards for residential property insurance. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter B, Chapter 2301, Insurance Code, is |
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| 13 | 13 | | amended by adding Section 2301.059 to read as follows: |
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| 14 | 14 | | Sec. 2301.059. MANDATORY OFFER OF ENDORSEMENT FOR ENHANCED |
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| 15 | 15 | | ROOF STANDARDS ON REPLACEMENT. (a) This section applies to each |
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| 16 | 16 | | insurer authorized to engage in the business of residential |
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| 17 | 17 | | property insurance or residential fire and allied lines insurance |
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| 18 | 18 | | in this state, including a capital stock insurance company, mutual |
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| 19 | 19 | | insurance company, county mutual insurance company, Lloyd's plan, |
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| 20 | 20 | | and reciprocal or interinsurance exchange. |
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| 21 | 21 | | (b) This section does not apply to: |
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| 22 | 22 | | (1) the Texas Windstorm Insurance Association; |
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| 23 | 23 | | (2) the FAIR Plan Association; or |
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| 24 | 24 | | (3) a commercial insurance policy. |
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| 25 | 25 | | (c) An insurer offering an insurance policy described by |
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| 26 | 26 | | Subsection (a) that includes replacement coverage for a roof shall |
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| 27 | 27 | | offer an endorsement providing that during a covered replacement of |
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| 28 | 28 | | the roof, the policy will provide coverage, subject to any |
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| 29 | 29 | | applicable deductions or policy provisions, to: |
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| 30 | 30 | | (1) replace the roof to meet one or more fortified home |
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| 31 | 31 | | roof standards adopted by the Institute for Business and Home |
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| 32 | 32 | | Safety or a successor organization; or |
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| 33 | 33 | | (2) replace the roof to meet another standard |
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| 34 | 34 | | submitted by the insurer and described by the policy. |
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| 35 | 35 | | (d) The enhanced coverage described by Subsection (c) |
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| 36 | 36 | | applies only if an insured elects to purchase the endorsement |
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| 37 | 37 | | described by that subsection. |
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| 38 | 38 | | (e) The endorsement described by Subsection (c) is subject |
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| 39 | 39 | | to an actuarially justified premium or rate charge. This subsection |
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| 40 | 40 | | does not require an insurer to charge an additional amount for the |
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| 41 | 41 | | endorsement. |
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| 42 | 42 | | (f) The commissioner may adopt rules necessary to implement |
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| 43 | 43 | | this section. The rules may not set or suggest a premium or rate |
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| 44 | 44 | | charge for the endorsement. |
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| 45 | 45 | | SECTION 2. Section 2301.059, Insurance Code, as added by |
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| 46 | 46 | | this Act, applies only to an insurance policy delivered, issued for |
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| 47 | 47 | | delivery, or renewed on or after January 1, 2026. |
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| 48 | 48 | | SECTION 3. This Act takes effect September 1, 2025. |
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