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CHAPTER 538 H.B. No. 1338 1 AN ACT 2 relating to the amount of homeowners insurance or other residential 3 property insurance required in connection with certain financing 4 arrangements. 5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 6 SECTION 1. Section 2, Article 21.48A, Insurance Code, is 7 amended by adding Subsection (g) to read as follows: 8 (q) No Lender, as a condition of financing a residential 9 mortgage or providing other financing arrangements for residential 10 property, including a mobile or manufactured home, may require a 11 Borrower to purchase homeowners insurance coverage, mobile or 12 manufactured home insurance coverage, or other residential 13 property insurance coverage in an amount that exceeds the 14 replacement value of the dwelling and its contents, regardless of 15 the amount of the mortgage or other financing arrangement entered 16 into by the Borrower. A Lender may not include the fair market 17 value of the land on which a dwelling is located in the replacement 18 value of the dwelling and its contents. 19 SECTION 2. This Act takes effect September 1, 2003, and 20 applies only to a mortgage or other financing arrangement for 21 residential property that is entered into on or after January 1, 22 2004. A mortgage or other financing arrangement for residential 23 property that is entered into before January i, 2004, is governed by 24 the law as it existed immediately before the effective date of this
Reference the current page of this Legislative Document.
Texas. Legislature. House of Representatives.78th Texas Legislature, Regular Session, House Bill 1338, Chapter 538,
legislative document,
June 20, 2003;
[Austin, Texas].
(https://texashistory.unt.edu/ark:/67531/metapth158143/m1/1/:
accessed April 26, 2024),
University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu;
crediting UNT Libraries Government Documents Department.