Bill White called for prior approval for increases in homeowners insurance rates yesterday, as he visited the homes of Texans who have seen their rates increase for years with no explanation as to why. Governor Rick Perry, when asked about his plan for homeowners insurance rates, ran away from cameras -- continuing his campaign's policy of ducking the hard questions at every turn.
The former Houston mayor cited the most recent figures compiled by the National Association of Insurance Commissioners, showing that only Florida has higher home insurance rates than Texas. The 2007 figures indicate the most common homeowners policy in Texas costs $1,448, 76 percent higher than the U.S. average premium of $822.
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Bettye Davis, a retiree who lives with her husband in northeast Houston, said their homeowners insurance premium jumped 27 percent from 2009 to 2010, "and we really don't know why.
"We did call, and they told us we should either raise our deductible, or buy our car insurance with them," she said.
White met with Davis and other homeowners Thursday and said the dramatic premium hikes amount to a tax that threatens the viability of home ownership.
"It's wrong, it's just flat wrong, when we have rates that are so much higher than the national average without some kind of approval by regulators," White said.
In a poll conducted by Texas Watch last year, 75% of Texans supported "prior approval" legislation. The proposal for prior approval is a common-sense policy that has worked across the country. Twenty-three states across the country require prior approval for at least some rate changes, including fourteen states -- both red and blue states -- that require prior approval for all rate increases. (Source).
Texas Watch, an advocacy group that has worked on homeowners issues for years, praised Bill White's call for prior approval in a statement:
“Texas homeowners have been beaten up by the insurance industry for too long, paying 76% more than the national average. We applaud Bill White for committing to support real insurance reform,” said Alex Winslow, executive director of Texas Watch. “Texans need comprehensive homeowners insurance reform. Requiring insurance companies to justify their rates is a key part of ensuring that rates are fair and coverage is adequate for all Texans.”
In Texas, homeowners insurance rates are $626 higher than the national average. From the Houston Chronicle: "
