This section says certain insurance rules apply to coverage for listed conditions and risks, and to related premium rates and other matters, in the same way they apply to fire insurance and fire insurance rates.
Sec. 2002.006. PROVISIONS GOVERNING CERTAIN CONDITIONS OR RISKS. (a) This chapter; Sections 403.002, 2001.001-2001.006, 2001.009, and 2001.010; Subchapter H, Chapter 544; Subchapter D, Chapter 1806; Chapters 2003, 2004, 2006, and 2171; and Articles 5.25, 5.25A, 5.25-3, 5.26, 5.27, 5.28, 5.29, 5.30, 5.31, 5.32, 5.34, 5.35, 5.39, 5.40, and 5.41 govern the following in the same manner and to the same extent those provisions govern fire insurance and fire insurance rates: (1) insurance coverage for any of the following conditions or risks: (A) weather or climatic conditions, including lightning, tornado, windstorm, hail, cyclone, rain, or frost and freeze; (B) earthquake or volcanic eruption; (C) smoke or smudge; (D) excess or deficiency of moisture; (E) flood; (F) the rising water of an ocean or an ocean's tributary; (G) bombardment, invasion, insurrection, riot, civil war or commotion, military or usurped power, or any order of a civil authority made to prevent the spread of a conflagration, epidemic or catastrophe; (H) vandalism or malicious mischief; (I) strike or lockout; (J) explosion, as provided by Subsection (b); (K) water or other fluid or substance resulting from: (i) the breakage or leakage of a sprinkler, pump, or other apparatus erected for extinguishing fire, or a water pipe or other conduit or container; or (ii) casual water entering a building through a leak or opening in the building or by seepage through building walls; or (L) accidental damage to a sprinkler, pump, fire apparatus, pipe, or other conduit or container described by Paragraph (K)(i); (2) premium rates in this state for the insurance described by Subdivision (1); and (3) all matters pertaining to the insurance described by Subdivision (1), except as provided by this section with respect to marine insurance as defined by Section 1807.001. (b) In this section: (1) "explosion" includes: (A) the explosion of a pressure vessel, other than a steam boiler of more than 15 pounds pressure, in a building designed and used solely for residential purposes by not more than four families; (B) an explosion of any kind originating outside of an insured building or outside of the building containing the insured property; (C) the explosion of a pressure vessel that does not contain steam or that is not operated with steam coils or steam jets; and (D) an electric disturbance causing or concomitant with an explosion in public service or public utility property; and (2) insurance coverage for explosion does not include coverage for loss of or damage to any property of the insured resulting from the explosion of or injury to: (A) a boiler, heater, or other fired pressure vessel; (B) an unfired pressure vessel; (C) a pipe or container connected with a boiler or vessel described by Paragraph (A) or (B); (D) an engine, turbine, compressor, pump, or wheel; (E) an apparatus generating, transmitting, or using electricity; or (F) any other machinery or apparatus connected with or operated by a boiler, vessel, or machine described by Paragraphs (A)-(E). (c) This section does not apply to: (1) a farm mutual insurance company operating under Chapter 911; (2) a county mutual insurance company operating under Chapter 912; (3) a mutual insurance company engaged in business under Chapter 12, Title 78, Revised Statutes, before that chapter's repeal by Section 18, Chapter 40, Acts of the 41st Legislature, 1st Called Session, 1929, as amended by Section 1, Chapter 60, General Laws, Acts of the 41st Legislature, 2nd Called Session, 1929, that retains the rights and privileges under the repealed law to the extent provided by those sections; (4) the making of inspections or issuance of certificates of inspections on a boiler, apparatus, or machinery described by Subsection (b)(2), whether insured or otherwise; or (5) the insurance of a vessel or craft, its cargo, marine builder's risk, marine protection and indemnity, or another risk commonly insured under a marine insurance policy, as distinguished from an inland marine insurance policy. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007. SUBCHAPTER B. POLICY FORMS