79th Texas Legislature, Regular Session, House Bill 2761, Chapter 69 Page: 1 of 4
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H.B. No. 2761
1 AN ACT
2 relating to the amount of homeowners insurance required in
3 connection with certain financing arrangements.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
5 SECTION 1. (a) Subchapter B, Chapter 549, Insurance Code,
6 is amended to conform to Section 1, Chapter 538, Acts of the 78th
7 Legislature, Regular Session, 2003, by adding Section 549.0551 to
8 read as follows:
9 Sec. 549.0551. REQUIRING CERTAIN AMOUNTS OF COVERAGE. (a)
10 A lender may not require as a condition of financing a residential
11 mortgage or providing other financing arrangements for residential
12 property, including a rhobile or manufactured home, that a borrower
13 purchase homeowners insurance coverage, mobile or manufactured
14 home insurance coverage, or other residential property insurance
15 coverage in an amount that exceeds the replacement value of the
16 dwelling and its contents, regardless of the amount of the mortgage
17 or other financing arrangement entered into by the borrower.
18 (b) For purposes of this section, a lender may not include
19 the fair market value of the land on which a dwelling is located in
20 the replacement value of the dwelling and its contents.
21 (b) Section i, Chapter 538, Acts of the 78th Legislature,
22 Regular Session, 2003, is repealed.
23 SECTION 2. Sections 549.056(a) and (d), Insurance Code, as
24 effective April 1, 2005, are amended to read as follows:
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Texas. Legislature. House of Representatives. 79th Texas Legislature, Regular Session, House Bill 2761, Chapter 69, legislative document, May 17, 2005; [Austin, Texas]. (texashistory.unt.edu/ark:/67531/metapth156888/m1/1/: accessed November 13, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.