Morgan Bill Drops Required Coverage For Sheds, Garages And Barns

The text as introduced · 375 words

90R2449 SCR-F

By: Morgan
H.B. No. 1118

A BILL TO BE ENTITLED

AN ACT

relating to requirements for commercial and residential property

insurance policies regarding coverage for a structure other than

the primary structure covered under the 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. OTHER STRUCTURES COVERAGE. (a) In this

section:

(1) "Other structure" means, with respect to a

commercial or residential property insurance policy, a structure,

other than the primary structure, that is located on the land on

which the primary structure is located but is not attached to the

primary structure. The term includes a detached structure or other

appurtenant structure that is located on the land on which the

primary structure is located but is not otherwise attached to the

primary structure.

(2) "Other structures coverage" means coverage for

other structures under a commercial or residential property

insurance policy.

(3) "Primary structure" means the principal insured

building covered under a commercial or residential property

insurance policy.

(b) This section applies only to an insurer writing

commercial or residential property insurance in this state,

including a Lloyd's plan, a reciprocal or interinsurance exchange,

a county mutual insurance company, and a farm mutual insurance

company.

(c) Notwithstanding any other law and subject to Subsection

(e), a commercial or residential property insurance policy is not

required to provide other structures coverage.

(d) An insurer may issue or renew a commercial or

residential property insurance policy that provides other

structures coverage only if:

(1) the insured affirmatively elects to include the

coverage; and

(2) the coverage is stated on the declarations page or

an endorsement form to the policy.

(e) A commercial or residential property insurance policy

that does not provide other structures coverage must contain a

notice located on the declarations page stating that other

structures are not covered by the policy.

(f) The commissioner may adopt rules necessary to implement

this section.

SECTION 2. The changes in law made by this Act apply only to

an insurance policy delivered, issued for delivery, or renewed on

or after January 1, 2028.

SECTION 3. This Act takes effect September 1, 2027.