Wendy Davis and Greg Abbott agree that insurance coverage is too expensive
Homeowners insurance has become a political platform in Texas. The state’s Attorney General, Greg Abbott, and Senator Wendy Davis are campaigning to be the next Governor of Texas, and the two candidates are divided on many issues, apart from insurance coverage. Both candidates agree that more must be done to slow the constant increase in homeowners insurance rates throughout the state. Texan homeowners have seen their premiums grow by a significant amount for the past several years, and they have made their concerns heard regarding the financial pressure they are feeling.
Rates for homeowners coverage continues to rise throughout the state
Both Abbott and Davis suggest that insurance rates for homeowners are too high. The state’s three largest insurance providers have raised their rates by a significant portion. Some homeowners have seen their premiums grow by approximately 15% in 2013 and rates continue to rise despite objections from consumers advocacy groups and some state lawmakers. Texas is currently home to the third largest insurance rates in the country, with the average premium being $1,578, according to the National Association of Insurance Commissioners.
Natural disasters lead to higher insurance rates
Insurers claim that rate increases are justified, citing natural disasters and certain market issues as the reason behind rate increases. Over the past few years, Texas has been battered by tornadoes, floods, hailstorms, and wildfires. These disasters have lead to significant losses in the insurance sector, and many insurers are working to recover from the losses that they experienced. In order to do so, they must raise rates on the coverage that they provide.
Not enough is being done to slow the growth of insurance rates
Abbott is promising to find ways to lower the cost of homeowners insurance, but he has not outlined any specific plan to do so. He did note that there must be a balance in the insurance market, suggesting that a better marketplace would attract new insurers offering less expensive coverage. Davis argues that more government oversight of the insurance sector is needed. She claims that the state’s current rate review process is not adequate enough to mitigate the rising costs of insurance coverage.