03.18.10

Homeowners insurance corporations – increasing our pain, Perry, GOP sit idly by

Posted in Around The State, Commentary, HD-52, Insurance Reform, Williamson County at 11:52 am by wcnews

Via Texas LSG, Homeowner Insurance Rates Continue to Rise [PDF]. And there is no oversight.

State Farm has announced that they will raise homeowner insurance rates by 4.5 percent in May. This comes on the heels of an 8.8 percent increase in October. 1 Texas homeowners already pay the second highest insurance premiums in the country; such a steep rate increase hurts Texas homeowners financially as they navigate through the worst recession in a generation.

Unfortunately, this is not the first time that Texas homeowners have been charged excessive premiums. In November, State Farm was ordered to repay its customers $310 million for overcharging homeowners for coverage dating back to 2003.2 This sum was actually $700 million less than what consumer advocates and the state’s Public Insurance Counsel recommended.

[...]

Since no legislation that gave such regulatory power to the Department of Insurance passed, insurance companies are free to continue raising rates. The Commissioner has been left only with the ability to write a disapproving letter to companies.

I’m sure a disapproving letter really scares an insurance corporation like State Farm. State Rep!? Diana Maldonado (D-Round Rock) says it’s time for “meaningful” reform.

“Forcing rate increase after rate increase on Texas homeowners is unacceptable and it is past time for the legislature to reverse course on this loophole that became law in 2003,” Rep. Maldonado said. “Hard working Texans deserve a level of stability and accountability in this volatile economy. Texas homeowners already pay the second highest insurance premiums in the nation, and I will work to eliminate this loophole to ensure that Texas homeowners are treated fairly and that insurance agencies are not allowed to continue unjustly raising rates in Texas.”

It’s doubtful either of her potential “conservative” opponents care much fore regulating the insurance corporations, and helping hardworking home owners.

BOR had this to say, State Farm Insurance to Raise Insurance Rates on Homeowners, Insurance Commission Unable to Stop:

These rate hikes require no prior approval of any kind. It might be important to mention, the Texas Insurance Commissioner is also appointed, not elected. This means the only person who can reprimand the Texas Department of Insurance (TDI) Commissioner, Mike Geeslin, is Rick Perry. Geeslin, has served as the Commissioner since 2005.

If Texas have to wait for Gov. Perry to help them in their fight against insurance corporations that help will never come. This means, at the current time, there is no regulation of homeowners insurance in Texas.

6 Comments »

  1. Homeowners insurance – Off the Kuff said,

    March 19, 2010 at 5:44 am

    [...] session, wouldn’t it? Having a Governor that cares about the issue would help, too. EoW and BOR have [...]

  2. Eye on Williamson » Texas Blog Round Up (March 22, 2009) said,

    March 22, 2010 at 8:17 am

    [...] WCNews at Eye On Williamson posts on the continuation of skyrocketing homeowners insurance rates in Texas Homeowners insurance corporations – increasing our pain, Perry, GOP sit idly by. [...]

  3. Texas Progressive Alliance Weekly Round Up « TexasVox: The Voice of Public Citizen in Texas said,

    March 22, 2010 at 10:51 am

    [...] WCNews at Eye On Williamson posts on the continuation of skyrocketing homeowners insurance rates in Texas Homeowners insurance corporations – increasing our pain, Perry, GOP sit idly by. [...]

  4. Texas blog roundup for the week of March 22 – Off the Kuff said,

    March 23, 2010 at 5:34 am

    [...] WCNews at Eye On Williamson posts on the continuation of skyrocketing homeowners insurance rates in Texas Homeowners insurance corporations – increasing our pain, Perry, GOP sit idly by. [...]

  5. Eye Pain Tinnitus « Tinnitus Retraining Therapy said,

    March 24, 2010 at 10:37 am

    [...] Eye on Williamson » Homeowners insurance corporations – increasing our pain, Perry, GOP … [...]

  6. Texas Progressive Alliance Round-Up W/16th Century Cattle Rustling Painting « Texas Liberal said,

    March 27, 2010 at 10:45 pm

    [...] WCNews at Eye On Williamson posts on the continuation of skyrocketing homeowners insurance rates in Texas: Homeowners insurance corporations – increasing our pain while Perry, GOP sit idly by. [...]

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