House insurance in Texas is the most expensive one there is. Homeowners have long been waiting for reform, but it seems that they have to wait for two more years before they are able to get lower rates. A partisan conflict came up in the House about voter ID regulation that is GOP-backed.
After this, the bill that was supposed to retool the Department of Insurance went down the drain. This was because the deadline already passed. Texas would have to wait for two more years before this issue can be discussed again.
According to Leticia Van de Putte, Senate Democratic Leader of San Antonio, this is a tragedy that hit the insurance holders in Texas, confirming that reform is not going to happen soon. The insurance industry would then continue to reap money while homeowners experience trouble trying to keep their houses safe and protected. John Smithee, the House Insurance Committee Chairman, also expressed his disappointment over the failure of this insurance bill. Around 200 amendments were prepared for the bill, but all of them now have to wait until it is time again.
As a result of the bill’s failure, insurance companies are expected to continue overcharging homeowners and insurance policy holders. According to Alex Winslow, member of Texas Watch, this failure is a big opportunity that was missed by Texas. He further adds that the House has just failed to stand up to its responsibility of addressing the insurance problems of homeowners. He expects that this issue will continue to make noise in the House, especially in the governor and legislative races.
On the other hand, Texas Coalition for Affordable Insurance Solutions’ Beaman Floyd said that homeowners are not being overcharged for their house insurance policies. He adds that the house insurance market in the area is functioning properly and is not taking advantage of policy holders.
Another effort to regulate house insurance in Texas was rejected early this year. This would have required house insurance companies to get approval before they raise their rates. As expected, the insurance industry opposed this. Consumer groups and other backers of this proposal had of course hoped that this proposal would win in the House. As of now, house insurance companies are able to raise their rates as soon as they are filed with the state.
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