Bill Text: TX HB287 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
88R761 JES-D | ||
By: Johnson of Dallas | H.B. No. 287 |
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relating to payment of the replacement cost of 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 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 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 lost or damaged 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. |