Bill Text: TX HB287 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to payment of the replacement cost of lost or damaged property under a homeowner's, renter's, or condominium owner's insurance policy.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2023-05-15 - Received from the House [HB287 Detail]
Download: Texas-2023-HB287-Engrossed.html
| 88R16011 JES-D | ||
| By: Johnson of Dallas, Hunter | H.B. No. 287 | |
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| relating to payment of the replacement cost of lost or damaged | ||
| property under a homeowner's, renter's, or condominium owner's | ||
| 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 2002.007 to read as follows: | ||
| Sec. 2002.007. REPLACEMENT COST COVERAGE REQUIREMENTS. (a) | ||
| 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, Lloyd's plan, and reciprocal or | ||
| interinsurance exchange. | ||
| (b) A homeowner's, renter's, or condominium owner's | ||
| insurance policy that includes replacement cost coverage must | ||
| provide that in a valid claim for loss of or damage to insured | ||
| property, the insurer must make an initial payment of not less than | ||
| 80 percent of the estimated cost to repair or replace the lost or | ||
| damaged dwelling or personal property minus the applicable | ||
| deductible. | ||
| (c) On documentation provided to the insurer that repair or | ||
| replacement is completed and on payment of the applicable | ||
| deductible, the insurer shall make the remaining payment due after | ||
| the initial payment. | ||
| (d) An insurer is not required to pay more than the total | ||
| cost to replace the lost or damaged dwelling or personal property | ||
| with property of a like kind and quality. | ||
| SECTION 2. Section 2002.007, 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. | ||
