From Dallas Express · Dallas Express · · 1m 30s
Texas targets soaring home insurance costs with new plan
Gov. Abbott directs state insurance department to crack down on practices driving up premiums after 79% six-year spike.
In brief
Gov. Abbott directs state insurance department to crack down on practices driving up premiums after 79% six-year spike. Texas homeowners insurance premiums rose 79% in six years, prompting new state actions to enforce fair pricing and crack down on fraud. Originally reported by Dallas Express.
Insurance premiums jumped 79%
Average annual homeowners insurance premiums in Texas rose 79% over six years. Gov. Abbott directed TDI to use existing authority to lower costs.
“High insurance costs hit Texas families hard. I directed TDI to put consumers first, and TDI is taking action to do so.”
Fortified roofs must get discounts
TDI will enforce a bulletin requiring insurers to account for lower risk when homes have FORTIFIED roofs. Insurers must adjust rates accordingly.
Age can't deny coverage
A proposed rule clarifies insurers can't refuse coverage based on roof age when state law prohibits using property age for that purpose.
Price optimization now banned
TDI issued a bulletin against price optimization, where insurers adjust prices to influence sales rather than basing them on actual risk or expenses.
New fraud task force coming
TDI plans to create an Insurance Fraud Task Force with law enforcement, anti-fraud groups and consumers. Fraud losses drive up costs for everyone.
AI use under scrutiny
TDI will analyze how insurers use artificial intelligence in claims and underwriting. Existing rules require human review for decisions affecting policyholders.
Legislature may act next session
Proposed changes include roof fortification grants, limiting advertising expenses in rates, and requiring advance notice of premium increases.
At a glance
Texas homeowners insurance premiums rose 79% in six years, prompting new state actions to enforce fair pricing and crack down on fraud.
