Hurricane Harvey has done a devastating amount of damage in Texas. Losses are expected to total more than $75 billion dollars, affecting more than 450,000 people. When the flood waters recede, Texans will begin the clean-up process — and are also likely to file a lot of insurance claims. According to a story in Candy’s Dirt, recent changes to insurance laws may present some challenges.

House Bill 1744 — which reduces the penalties insurance companies can face if they settle weather related claims for too little — was signed into law May 27 by Governor Greg Abbott. Although the bill was created for tort reform, some homeowners seeking to file insurance claims may be testing the limits of the bill. The law went into effect Sept. 1, although it is retroactive to the date it was signed into law. 

The bill also reduces the likelihood insurance companies will have to pay the homeowner’s attorney fees if the homeowner decides to file a lawsuit. The bill also protects individual insurance agents from suffering from a lower credit score if a lawsuit is filed against them.

Homeowners who suffered losses from Hurricane Harvey should still file claims with their insurance companies and should thoroughly document all losses. It is still unknown how the new law will affect the payouts homeowners receive after filing storm-related claims. To make the issue even more complex, federal law (which falls under FEMA) takes priority over state law.

A Texas Tribune story from May reported that groups opposed to the bill cite unpaid or slowly-paid claims as evidence the bill could hurt consumers. Advocacy groups state the bill sides too much with insurance companies.

As Texas cleans up after Harvey, it remains to be seen how the new law will affect homeowners getting paid from weather related claims.