New Law Limiting Your Rights Under Your Policy Goes Into Effect September 1
The Texas Legislature passed a law, effective September 1, called the “Hailstorm Bill.” This new law severely limits your rights under your commercial property insurance policy. Here are a few of the new changes.
-Statutory Penalties: The current law provides a penalty of 18% for failure of an insurance company to pay a claim timely and fairly. The new law lowers that amount to 5% higher than the Texas Pre-judgment interest rate which is now 5%. So the penalty will effectively drop from 18% to 10%.