Bill Text: TX HB3579 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to coverage for certain water damage claims under certain residential property insurance policies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-05-02 - Committee report sent to Calendars [HB3579 Detail]
Download: Texas-2017-HB3579-Comm_Sub.html
| 85R23830 MEW-F | |||
| By: Phillips | H.B. No. 3579 | ||
| Substitute the following for H.B. No. 3579: | |||
| By: Phillips | C.S.H.B. No. 3579 | ||
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| relating to coverage for certain water damage claims under certain | ||
| residential property insurance policies. | ||
| 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. COVERAGE FOR WATER DAMAGE CLAIMS. (a) In | ||
| this section, "insurer" and "residential property insurance" have | ||
| the meanings assigned by Section 544.352. | ||
| (b) An insurer that issues a residential property insurance | ||
| policy, including an endorsement, that provides coverage for a loss | ||
| resulting from water damage may not restrict coverage or deny a | ||
| claim under the policy based on the duration of the seepage or | ||
| leakage of water if the insured: | ||
| (1) demonstrates, in good faith, that the water damage | ||
| could not have reasonably been discovered earlier; and | ||
| (2) provides prompt notice after the loss was | ||
| discovered. | ||
| (c) Nothing in this section affects a policy provision | ||
| requiring an insured to promptly take action to mitigate a loss or | ||
| further damage after the insured discovers the water damage. | ||
| (d) If an insurer requires a policyholder to provide notice | ||
| of a loss resulting from water damage within a certain time period, | ||
| the insurer must provide a written disclosure to the policyholder | ||
| that clearly describes the time period within which the | ||
| policyholder must submit a water damage claim. The insurer must | ||
| include the disclosure on the policy's declarations page or a | ||
| separate disclosure page provided to the policyholder with the | ||
| declarations page. | ||
| (e) The commissioner may adopt rules as necessary to | ||
| implement this section. | ||
| SECTION 2. Section 2002.007, Insurance Code, as added by | ||
| this Act, applies only to an insurance policy that is delivered, | ||
| issued for delivery, or renewed on or after January 1, 2018. A | ||
| policy delivered, issued for delivery, or renewed before that date | ||
| is governed by the law as it existed immediately before the | ||
| effective date of this Act, and that law is continued in effect for | ||
| that purpose. | ||
| SECTION 3. This Act takes effect September 1, 2017. | ||
