This territory rating violates the purpose of insurance: to spread the cost of risks in a state. Yes, along the beach the storm risk is high and buyers knew that when they bought there, therefore, they should pay more. But most risks are rare and unpredictable by the average homeowner. To narrow classes in small defined territories is unfair and does not spread the risk as it should. In reality the zip code type classification system is the old, outlawed redlining system. Older houses in older neighborhoods are more likely to belong to poorer people, and they end up paying more. That is the opposite of fair and shows the practical effect of letting the 1% control government. No other state has such high insurance rates and although that means insurance companies make much more money in Texas, the concept of the government being in existence for the people of the State is destroyed.
This must stop and be regulated even when some talk of “evil government regulators” the practice adopted proves the necessity of regulation of the insurance industry.
I agree Arne as a insurance agent the rating territories are unfair!! I just wanted to give you a little piece of information. Just like in a flood prone area somebody has to purchase special flood ins., people on the cost have to purchase special insurance for wind, hail and hurricane coverage. Like flood insurance you can purchase it through your agent but it’s state insurance actually protecting you not the company you buy through.
This territory rating violates the purpose of insurance: to spread the cost of risks in a state. Yes, along the beach the storm risk is high and buyers knew that when they bought there, therefore, they should pay more. But most risks are rare and unpredictable by the average homeowner. To narrow classes in small defined territories is unfair and does not spread the risk as it should. In reality the zip code type classification system is the old, outlawed redlining system. Older houses in older neighborhoods are more likely to belong to poorer people, and they end up paying more. That is the opposite of fair and shows the practical effect of letting the 1% control government. No other state has such high insurance rates and although that means insurance companies make much more money in Texas, the concept of the government being in existence for the people of the State is destroyed.
This must stop and be regulated even when some talk of “evil government regulators” the practice adopted proves the necessity of regulation of the insurance industry.
I agree Arne as a insurance agent the rating territories are unfair!! I just wanted to give you a little piece of information. Just like in a flood prone area somebody has to purchase special flood ins., people on the cost have to purchase special insurance for wind, hail and hurricane coverage. Like flood insurance you can purchase it through your agent but it’s state insurance actually protecting you not the company you buy through.