House Bill 2102, which passed in the 86th legislative session, requires consumers to pay the required deductible on all claims on property insurance policies.
In an attempt to stem the practice of shady roofing contractors offering to “absorb your deductible,” HB 2102 requires policyholders to provide “reasonable proof of payment” to the insurer. If proof of payment of the deductible is not provided, the insurer may refuse to pay recoverable depreciation or replacement cost holdback owed.
Reasonable proof of payment includes a canceled check, money order receipt, credit card statement or an executed installment plan. A contract to provide goods and services of $1,000 or more requires proof to be provided to the insurer. Every property insurance policy will contain a statement which clearly states that “Texas law requires a person insured under a property insurance policy to pay any deductible applicable to a claim made under the policy.”
With hurricane season in full swing, it’s easy to think this legislation pertains to storm damage; however, it pertains to ALL types property damage claims.
If you have any questions, please contact a member of your BCH service team.