The Association of Fire and Casualty Companies of Texas (AFACT), a property/casualty insurance trade association, announced that its member companies are still offering homeowners policies to Texas consumers and asserted that a special session of the legislature is not needed to address homeowners coverage issues in the state.
AFACT said its members include companies who have been doing business in Texas for fifty years or longer. Association members that are writing homeowners insurance are concerned about the current political, regulatory and legislative environment affecting insurance consumers and companies as well.
The group noted that the work done by the Governor’s office and the Texas Department of Insurance (TDI) to expand the range of homeowners insurance products available to Texas families will allow insurers coverage options and give consumers the freedom to purchase coverage that best meet their needs.
Members of AFACT have been working with elected officials, candidates, TDI, and House and Senate Committees to provide information and to help them craft new laws. Additionally, AFACT members are participating in the market assistance program designed to help consumers locate insurance.
Association members include Lloyds and reciprocal companies that are not rate-regulated, but are regulated in other respects by the TDI. AFACT asserted that the average cost of homeowners policies in Texas actually decreased in 1999 and 2000 and added that the emergence of the large water losses (or mold claims) interrupted that trend, contributing significantly to the current homeowners crisis. Historically, most Lloyds and reciprocals have offered coverage at rates below the average benchmark.
At this time, AFACT does not believe there’s a need for a special session of the legislature. AFACT’s members are working to expand the range of homeowners insurance products to Texas families through recently approved national forms approved by the Department of Insurance.
Topics Texas Homeowners
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