Under Texas Insurance Code Chapter 6003, which exemption applies to a property owner or lessee who installs a fire protection sprinkler system for their own use and does not offer the property for sale or lease within 1 year of installation?

• A. An owner or lessee who installs a fire protection sprinkler system for their own use and does not offer the property for sale or lease within 1 year of installation
• B. An owner who installs a sprinkler system for personal use but offers the property for sale within 1 year
• C. A lessee who installs a sprinkler system for use and immediately offers the property for sale
• D. A contractor who installs a sprinkler system for a property that is sold within 1 year

Answer: (A)

The main idea here is that Texas Insurance Code Chapter 6003 provides a specific exemption for a property owner or lessee who installs a fire protection sprinkler system for personal use and does not put the property up for sale or lease within a year. When you install the system for your own use and you aren’t planning to sell or lease the property within the first year, you don’t fall under the broader regulatory requirements that apply to contractors or to property being marketed for sale soon after installation. This is exactly the scenario described: the owner/lessee acts for personal use and keeps the property off the market for at least a year, so the exemption applies.

The other situations don’t fit because they involve offering the property for sale within a year or involve a contractor installing the system for a property that is being sold, which means the exemption doesn’t apply and different rules or licensing requirements would come into play.