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A BILL TO BE ENTITLED
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AN ACT
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relating to a landlord's duty to maintain property and casualty |
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insurance coverage for loss of or damage to a leased premises. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 92.054, Property Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) A landlord shall obtain and maintain coverage under a |
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property and casualty insurance policy that provides coverage for |
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loss of or damage to a leased premises. The policy must provide |
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replacement cost coverage. |
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SECTION 2. Subchapter B, Chapter 92, Property Code, is |
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amended by adding Section 92.063 to read as follows: |
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Sec. 92.063. TENANT'S REMEDY FOR LANDLORD'S FAILURE TO |
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MAINTAIN INSURANCE. (a) A landlord is liable to a tenant for |
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failure to maintain insurance if: |
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(1) the property leased by the tenant suffers a |
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casualty loss or damage caused by a peril for which the landlord |
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could have obtained coverage under a property and casualty |
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insurance policy and for which the landlord did not maintain |
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coverage in accordance with Section 92.054(a-1); and |
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(2) the tenant is displaced because of the casualty |
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loss or damage. |
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(b) A landlord who is liable to a tenant under Subsection |
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(a) shall pay to the tenant all reasonable expenses related to the |
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tenant's relocation as a result of the displacement described by |
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Subsection (a)(2) to a dwelling comparable to the damaged premises |
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under comparable lease terms. |
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SECTION 3. Sections 92.054(a-1) and 92.063, Property Code, |
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as added by this Act, apply only to loss or damage that occurs on or |
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after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2017. |