While Hurricane Harvey insurance claims are the first thought these days, every homeowner should know about a change to Texas homeowners insurance law that will go into effect on Friday.
House Bill 1744 was signed into law May 27 by Gov. Greg Abbott. Billed as tort-reform legislation that would reduce the opportunity for insurance fraud, some now say the law may very well get its first stress test in the wake of Hurricane Harvey.
The law reduces the penalties insurance companies can face if they settle claims for too little, and it lessens the chance the companies will have to pay the homeowner’s attorneys fees if the homeowner sues. It also protects individual agents from things like diminished credit scores if they are individually sued.
The bill addresses all weather-related damage — including floods, wildfires, hail, and hurricanes.