| (iv) tidal wave; (v) high water, or overflow, whether driven by wind or not; nor (vi) for any loss or damage caused by rain, whether driven by wind or not, unless the wind or hail shall first make an opening in the walls or roof of the described building, and shall then be liable only for loss to the interior of the building, or the insured property therein, caused immediately by rain entering the building through such openings. This association shall not be liable under this coverage for damage caused by ensuing fire. (H) The liability of the association for loss or damage to a mobile home shall: (i) not exceed the lowest of: (I) the difference between the actual cash value of the insured property immediately before the loss and its actual cash value immediately after the loss; or (II) the cost of repairing the damage; or (III) the actual cash value of the insured property immediately preceding the loss; or (IV) the cost of replacing the insured property; or (V) the limit of liability stated in the declarations; and the liability thus determined shall, in addition, be subject to any deductible amount stipulated in the policy; (ii) in any loss involving part of a pair, set, or series of objects, pieces, or panels (whether interior or exterior), be determined by reference to: (I) a fair and reasonable proportion of the part of the total value of the pair, set, or series; or (II) the reasonable cost of repairing or replacing the damaged part so as to match the remainder as closely as reasonably possible under the circumstances; or (III) the reasonable cost of providing a reasonably acceptable alternative decorative effect or utilization, as the circumstances may warrant. The association does not guarantee the availability of parts or replacements and shall not, in the event of such damage to or loss of a part, be obligated for the value of, or to repair or replace, the entire pair, set, or series. (I) The association shall not be liable on any one loss with respect to personal effects for more than $250 on money, coin collections, or other numismatic property and paraphernalia; gold bullion; silver bullion; passports; airline, railroad, and other tickets; securities; manuscripts, stamps or other philatelic property and paraphernalia; any one article of jewelry including, but without being limited to, watches, necklaces, bracelets, gems, precious and semiprecious stones, and articles of gold and platinum; art, including, but without being limited to, paintings, sculptures, drawings, etchings, ceramics, and china; heirlooms; furs, including any article containing fur which represents its principal value; or guns. (J) No forms may be used to provide catastrophe insurance for a mobile home risk unless such form has been specifically approved by the Commissioner for use in insuring mobile homes risks by the association. (K) Catastrophe insurance shall not provide insurance coverage for any one insurable risk in excess of $84,000 on the mobile home and on household goods contained therein, which shall include all personal property usual to a residence of the insured and the insured's family. (L) The limit of liability for mobile homes shall be adjusted annually for inflation at a rate that reflects any change in the BOECK Index or other index that may accurately reflect changes in the cost of construction or residential values in the catastrophe area. Such adjustment shall be made by the Commissioner as part of the annual rate hearings held pursuant to Article 5.101 of the Insurance Code. (4) Application. (A) The legislature of the State of Texas has declared that an adequate market for windstorm, hail, and fire insurance for insurable property, which is immovable property at fixed locations, is necessary to the economic welfare of the State of Texas and has further declared that mobile homes have become a primary housing resource of many of the citizens of the state. (B) An applicant for catastrophe insurance shall apply to the association for a policy of insurance, and such application shall contain a declaration to the effect that the mobile home is physically attached to the land, immovable, and such application shall be accompanied by the following: (i) a certificate of inspection applicable to mobile homes manufactured after December 31, 1975, to the effect that such mobile home has been constructed in accordance with the underwriting requirements set forth in paragraph (3)(C) of this subsection. Such certificate of inspection may be made by the manufacturer of such mobile homes, by the terms of which the construction of such mobile home is warranted to be in accordance with the underwriting requirements set out in paragraph (3)(C) of this subsection. The association may rely upon such warranty in the issuance of a policy of catastrophe insurance. This warranty is made by the manufacturer, and not the policyholder. The certificate of inspection with reference to such mobile home may be made by the Texas Department of Labor and Standards or by such inspector as may be appointed or approved by it, or by an inspector designated by the association. Appropriate evidence satisfactory to the association of the issuance of a seal of approval by the Texas Department of Labor and Standards issued pursuant to the provisions of Texas Civil Statutes, Article 5221f, may, at the option of the association, satisfy the requirements of this paragraph; and (ii) a certificate or other appropriate evidence required by the association evidencing the issuance of a seal of approval by the Texas Department of Labor and Standards issued pursuant to Texas Civil Statutes, Article 5221f, §8(b), as to mobile homes manufactured prior to January 1, 1976, and sold by a dealer, as that term is defined in Texas Civil Statutes, Article 5221f, subsequent to August 31, 1975; (iii) a certificate of inspection to the effect that such mobile home has been properly blocked, supported, anchored, secured, and installed as required by paragraph (3)(E) of this subsection. Such certificate of inspection may be made by an installer as that term is defined in Texas Civil Statutes, Article 5221f, by a certificate addressed to the association, by the terms of which the blocking, supporting, anchoring, securing and installing of such mobile home is warranted to be in accordance with such underwriting standard. The association may rely upon such warranty in the issuance of a policy of catastrophe insurance, or the certificate of inspection may be made by an inspector designated by the association. The warranty referred to herein is made by the installer and not the policyholder; (iv) in the event an inspector is designated by the association for any of the purposes set forth herein, the person applying for catastrophe insurance shall pay a reasonable fee to the association for each such inspection. The reasonableness of the fee shall be subject to review by the commissioner. |
| Source Note: The provisions of this §5.4001 adopted to be effective January 1, 1976; amended to be effective February 10, 1984, 9 TexReg 485; amended to be effective August 1, 1984, 9 TexReg 3943; amended to be effective August 3, 1984, 9 TexReg 3944; amended to be effective August 15, 1984, 9 TexReg 4290; amended to be effective November 2, 1984, 9 TexReg 5425; amended to be effective May 2, 1985, 10 TexReg 1263; amended to be effective July 30, 1986, 11 TexReg 3260; amended to be effective June 26, 1987, 12 TexReg 1902; amended to be effective November 16, 1987, 12 TexReg 4008; amended to be effective January 21, 1988, 13TexReg193;amendedto be effective October 10, 1988, 13 TexReg 4782; amended to be effective March 27, 1990, 15 TexReg 1410; amended to be effective December 11, 1990, 15 TexReg 6849; amended to be effective March 6, 1991, 16 TexReg 1094; amended to be effective March 2, 1992, 17 TexReg 1309; amended to be effective July 9, 1992, 17 TexReg 4607; amended to be effective July 19, 1993, 18 TexReg 4326; amended to be effective December 8, 1994, 19 TexReg 9359; amended to be effective August 3, 1995, 20 TexReg 5383; amended to be effective May 1, 1996, 21 TexReg 3371; amended to be effective July 9, 1996, 21 TexReg 5977; amended to be effective July 15, 1996, 21 TexReg 6893; amended to be effective April 1, 1997, 22 TexReg 2966; amended to be effective July 21, 1997, 22 TexReg 6623; amended to be effective August 29, 2001, 26 TexReg 6300; amended to be effective October 15, 2002, 27 TexReg9584; amended to be effective September 2, 2008, 33 TexReg 7245 |
