AUSTIN, TEXAS (KVEO NEWSCENTER 23) — A bill by Senator Eddie Lucio, Jr. (D-Brownsville) which would create more transparency for Texas property insurance consumers unanimously passed out of committee, the first major hurdle any bill must clear before passage into law. This is the first bill relating to insurance to pass out of committee this 83rd Texas Legislative Session.
The bill, SB 112, would require all Texas insurance companies' declaration pages to include a list and explanation of each deductible selected by the insured, as well as the dollar amount of each deductible. Under current law, insurers are permitted to list deductibles as percentages, which can be confusing for consumers. For example, consumers often assume that these deductible percentages are applied to the amount of the claimed loss. In fact, these deductible percentages apply to the insured value of the home covered by the policy, meaning consumers end up paying more money in premiums than they might have anticipated.
SB 112 is intended to help consumers make responsible purchasing decisions by providing clear information about the true cost of homeowners' insurance. Senator Lucio early filed SB 112 in November 2012.
"I am delighted that this important piece of legislation is my first to pass out of committee this Session," Sen. Lucio said. "Homeownership is the American dream. We should arm consumers with the best information possible so they can make this dream a reality for their families."
Today, SB 112 was unanimously recommended by the Senate Committee on Business and Commerce for passage by the entire Texas Senate. It will now need to be considered by the full Senate before passage to the Texas House of Representatives for consideration and ultimate passage.