Damage left by Hurricane Harvey is far from over and still going on in different parts of Texas. Those seeing immediate consequences need to file insurance claims by Friday if they hope to avoid consequences of a newly passed Texas law. According to our own John Burgman “Loss date is loss date. I don’t think it will have any impact on these losses.” However we will give you the full briefing on what we know about this new bill taking Harvey out of the context.
A new law set to take effect Friday aims to crack down on frivolous insurance lawsuits. But whether there’s a lawsuit or not, House Bill 1774 also reduces the penalty interest rate insurance companies are subject to on late payments.
Policyholders filing claims on or before Friday could collect an 18 percent interest penalty fee if the insurance company fails to pay a claim on time. For claims filed after Friday, the rate will be determined by a market-based formula. Currently, that would total 10 percent.
The bill is often referred to as “hailstorm lawsuit reform,” but its range is wider and includes natural disasters such as the flooding going on throughout Texas.
Back to Harvey and claims. To avoid any implications of this legislation as no clear statements have been made regarding Harvey, claims should be made before Friday until further notice from the Government.
Our thoughts and prayers go out to all of those affected by this catastrophic storm. Together we will rebuild.