As the state has already been ranked as one of the most expensive in the country, suggestions are being sought.
A lawmaker in Texas has just addressed the insurance industry in the state, requesting that they come up with a way to help to reduce the consistently high homeowners insurance rates for residents.
Texas is continually being ranked as one of the three most expensive states in the U.S. for this coverage.
The other two states at the top of the expensive homeowners insurance rates list are Louisiana and Florida. This has prompted Senator John Carona to urge the state Insurance Commissioner, Julia Rathgeber, to discover new options to “achieve lower rates in this state.” This request was made at a Senate Business and Commerce Committee hearing.
Carona has acknowledged that other homeowners insurance changes are needed, but that cost tops the list.
Senator Carona is the chair of the Senate Business and Commerce Committee. He explained that lawmakers do know “that simplicity of forms and other like issues are important. … But what are other things we could do, whether it’s a particular form that’s not presently offered?”. He also asked “How might we offer something to consumers that at least gives them the opportunity, albeit for less coverage, to be able to pay less price?”
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Also noted by the senator was that the committee had been asking the exact same homeowners insurance rates question of the previous commissioner in the state, but that he didn’t feel that they had received “a very sufficient answer.” He indicated that while the industry is generally opposed to doing this, the solution may be in a more bare bones type of policy offering.
Rathgeber shared that she believes that it could be possible to create this type of option, provided that they “have really strong disclosure.” She added that there should be more of an effort geared toward boosting competition within this specific marketplace. The hope, she said, is that with competition, the rates will naturally lower themselves. This has already been witnessed within the auto coverage marketplace and there is no reason that it shouldn’t also carry over to homeowners insurance.