HOMEOWNERS RATE REVIEWS OVER

The Texas Department of Insurance completed its second and final round of reviews of Texas homeowners’ insurance company rates, in which 29 companies were reviewed and five insurers were ordered to reduce rates from between 10 percent to 22.4 percent. The 29 insurance company groups represent one percent of the Texas homeowners market. The five companies ordered to reduce rates as a result of the second round of reviews are: Delta Lloyds Insurance Co. of Houston (20 percent); Financial Insurance Exchange, (10 percent); Balboa Lloyds Insurance Co., (10.2 percent); Fidelity National Lloyds, (17 percent); and Pacific Specialty Lloyds, (22.4 percent). All have agreed to the reductions. TDI previously examined the rates of the 32 insurance companies writing in excess of $10 million in Texas premium each year. Insurance Commissioner Jose Montemayor said acceptance of the ordered reductions by nearly all of the 32 larger companies and all 29 smaller insurers indicates a sound and fair approach to rate setting. Montemayor recently upheld the rate reductions for State Farm Lloyds Insurance (12 percent) and Farmers Insurance Group (17.5 percent), two of the larger companies that had appealed the rate cuts. Both companies may appeal Montemayor’s decision in state district court.

Topics Texas Homeowners