Texas Gubernatorial Candidates Face Off on Homeowners Rates

The two Texas gubernatorial candidates continue to trade barbs over the state’s tumultuous homeowners insurance market, further proving that higher premiums have become a major issue in the campaign.

According to the Dallas Morning News, Democratic candidate Tony Sanchez has increased calls for a special session of the Texas Legislature to address the issue, with Republican governor Rick Perry continuing to dismiss the appeal as unnecessary.

During a five-stop bus tour through East Texas, Sanchez asserted that Perry’ s refusal to call a special session is proof of his ties to the insurance industry, which has donated nearly $900,000 to the governor’s campaigns in the last five years.

Perry has responded by citing efforts he has already made to reign in the market, including initiating investigations by the Texas Department of Insurance (TDI) and the attorney general of the state’s leading insurers for price gouging and unfair trade practices.

According to the governor, once these and other issues have been fully studied, he will respond by reducing homeowners’ ability to file lawsuits against insurers- he largely blames trial lawyers’ suits against carriers for driving up rates.

However, Perry has also said he intends to implement new regulations on the industry.

Sanchez decried waiting until the Legislature’s next regular session to address the issue as too long, especially given that more than 1 million homeowners’ policies will expire between now and then. He reiterated his plan to require insurers to offer full coverage, including mold and water damage, as optional for homeowners.

Sanchez also called for re-regulation of Lloyd’s companies, which are currently not regulated by the state and write 95 percent of Texas’ homeowners’ policies.

Topics Texas Homeowners