HB2553 regulates insurance payments for repairable residential properties with mortgagee clauses.

HB2553 modifies property insurance claims for residential properties with mortgagee clauses. It mandates insurers to pay at least 50% of insurance proceeds directly to the insured if the mortgagee or assignee does not meet certain conditions. For repairable properties, insurers must pay the insured within two business days after approving repairs. If the mortgagee holds a loan less than or equal to 25% of the property's assessed value and the loan is in good standing, the insurer must pay the insured directly. These provisions apply to mortgagee clauses executed after January 1, 2027.

HB2553 regulates insurance payments for repairable residential properties with mortgagee clauses.

HB2553 modifies property insurance claims for residential properties with mortgagee clauses. It mandates insurers to pay at least 50% of insurance proceeds directly to the insured if the mortgagee or assignee does not meet certain conditions. For repairable properties, insurers must pay the insured within two business days after approving repairs. If the mortgagee holds a loan less than or equal to 25% of the property's assessed value and the loan is in good standing, the insurer must pay the insured directly. These provisions apply to mortgagee clauses executed after January 1, 2027.