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Seal of the Senate of the State of Texas
Welcome to the official website for the
Texas Senate
Senator Eddie Lucio, Jr.: District 27
Lucio Masthead Graphic
Press Release
March 13, 2013
Contact: Daniel Collins
General Counsel & Press Secretary
Lucio Bill to Protect Insurance Consumers Passes Senate

AUSTIN — Today, the Texas Senate unanimously passed a bill by Senator Eddie Lucio, Jr. (D-Brownsville) which would help consumers be more informed when purchasing homeowners' insurance.

"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," Senator Lucio said.

As filed, Senate Bill 112 would require all Texas insurance companies to provide an 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.

An amendment to Senate Bill 112 would allow insurers to print an explanation of deductibles on a separate declaration page.

Senate Bill 112 previously passed out of the Senate Committee on Business and Commerce in February. Now engrossed by the Senate, the bill moves to the Texas House of Representatives.