Which provision must be included verbatim in fire insurance policies issued on real property in Texas?

Which provision must be included verbatim in fire insurance policies issued on real property in Texas?

• A. Indemnity Clause
• B. Subrogation Clause
• C. Waiver of Premium
• D. Liquidated Demand

Answer: (D)

Texas requires a liquidated demand clause to be included verbatim in fire insurance policies issued on real property. This provision gives the insured a clear, fixed remedy if the insurer delays or refuses payment after a proper proof of loss. Once the insured files the proof of loss and meets policy conditions, the clause allows the insured to demand payment of the amount due, with a defined deadline for payment. If the insurer still doesn’t pay, the insured can pursue the due amount through the appropriate remedies. The purpose is to provide a straightforward, prompt mechanism to resolve payment disputes and reduce litigation over the amount owed. Other provisions describe general rights or protections in a policy, but they are not the statutorily required verbatim clause for fire policies on real property.

Texas requires a liquidated demand clause to be included verbatim in fire insurance policies issued on real property. This provision gives the insured a clear, fixed remedy if the insurer delays or refuses payment after a proper proof of loss. Once the insured files the proof of loss and meets policy conditions, the clause allows the insured to demand payment of the amount due, with a defined deadline for payment. If the insurer still doesn’t pay, the insured can pursue the due amount through the appropriate remedies. The purpose is to provide a straightforward, prompt mechanism to resolve payment disputes and reduce litigation over the amount owed. Other provisions describe general rights or protections in a policy, but they are not the statutorily required verbatim clause for fire policies on real property.