Texas State Senator Files Harvey-Inspired Disaster Relief Bills

Texas state Sen. Kelly Hancock (R-North Richland Hills) has filed a legislative package addressing two significant concerns raised in the wake of Hurricane Harvey.

Senate Bill 442 would require all homeowner’s insurance policies that do not provide flood coverage to explicitly state so by providing written notice to the insured, and SB 443 would extend the disaster relief homestead exemption from two to five years.

SB 442

Texas Department of Insurance (TDI) data show more than half of all homes flooded by Hurricane Harvey were outside designated flood zones. Many consumers in these areas have expressed a lack of awareness that their standard homeowners’ insurance policies did not cover flood damage. SB 442 would require all residential property insurance policies that do not provide flood coverage to explicitly state so, providing written notice to the insured.

In its 2018 Biennial Report, published in December 2018, the Texas Department of Insurance recommended that lawmakers consider the issue of flood coverage disclosures. Also in December 2018, Rep. Mary Ann Perez of District 144 in Pasadena filed House Bill 283, which “would require all insurers that issue commercial or residential policies that don’t provide coverage for flood losses to include the following statement on top of the policy’s declaration page: ‘WARNING: THIS POLICY DOES NOT PROVIDE COVERAGE AGAINST LOSS CAUSED BY FLOODING.'”

SB 443

In Texas, all homeowners qualify for a $25,000 school homestead exemption to their property taxes. Those 65 or older and the disabled qualify for an additional $10,000 exemption. Because the homestead exemption may only apply to a primary residence, state law currently provides that the homeowner can continue receiving their exemption on a property damaged due to a natural disaster for up to two years, while living elsewhere and rebuilding the primary residence. SB 443 would extend that period up to five years to accommodate construction timelines following large-scale disasters like Hurricane Harvey.

Hancock represents District 9, which includes portions of Dallas and Tarrant Counties. He currently serves as chairman of the Texas Senate Committee on Business & Commerce and vice chair of the Texas Senate Committee on Transportation.

Topics Texas Flood Homeowners