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A BILL TO BE ENTITLED
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AN ACT
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relating to coverage for water damage claims for re |
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sidential |
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property insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2002, Insurance Code is |
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amended to add the following section: |
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Sec. 2002.007. Coverage for Residential Property Water |
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Damage Claims. (a) If a residential property policy, including an |
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endorsement, provides coverage for loss resulting from continuous |
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or repeated seepage or leakage of water or steam, the policy must |
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not restrict coverage, and the insurer must not deny a claim, based |
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on the duration of the seepage or leakage if an insured notifies |
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the insurer no later than 30 days after the loss was discovered or |
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should have been discovered. |
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(b) The insurer must provide a written disclosure to the |
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policyholder that clearly describes the 30-day notice requirement |
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in subsection (a) of this section. The insurer must include the |
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disclosure on the declarations page, or a separate disclosure page |
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provided to the policyholder with the declarations page. |
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(c) This section applies to an insurer as defined in Section |
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544.352(2), writing residential property insurance as defined in |
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Section 544.352(3) in this state. |
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(d) The commissioner may adopt rules as necessary to |
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implement this section. |
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SECTION 2. Section 2002.007, Insurance Code, as amended by |
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this Act, applies only to an insurance policy that is delivered, |
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issued for delivery, or renewed on or after January 1, 2018. A |
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policy delivered, issued for delivery, or renewed before January 1, |
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2018, is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect January 1, 2018. |