Texas lawmakers call for reform as state ranks 3rd for home insurance expenses
Texas officials want home owner's insurance reform
A report has revealed that Texas is the third most expensive state in the nation for home insurance.
RICHARDSON, Texas - A report has revealed that Texas is the third most expensive state in the nation for home insurance.
Some lawmakers are now calling on the governor to hold the insurance industry accountable.
The report says Texas home insurers have denied nearly half of all claims, while bringing in record profits through premium increases.
Texas home insurance rising
"New homebuyers are facing higher interest rates, which further erodes their purchasing power," said Rob Bhatt, LendingTree home insurance expert. (Photographer: David Paul Morris/Bloomberg via Getty Images)
Representative Mihaela Plesa (D-Plano), represents southwest Collin County in a district that includes Plano, Dallas, Allen, and Richardson. She says the state of home insurance in Texas is appalling.
"Texas home insurers closed nearly half of all claims without paying a dime," said Plesa.
Thursday, Texas lawmakers said a combination of rising insurance rates and frequent claim denials are getting out of control.
"Texans are paying twice as much as the national average for home insurance, essentially getting less protections than ever when disaster strikes," Plesa continued.
Homeowners insurance costs could spike over next 2 years
Homeowners could see insurance premiums jump another 16% over the next two years due to an uptick in natural disasters and rebuilding costs.
She says since 2019, premiums have jumped 55 percent.
"That extra couple hundred dollars a month squeezes budgets. They are thinking, ‘Can I afford my home? Do I have to cut back on groceries?’" Plesa said.
Plesa says insurance companies are also quietly shifting more claim expenses to homeowners. For example, she says a $1,000 deductible is likely now $2,000.
North Texan's home insurance battle
Local perspective:
Flinn Carrington knows firsthand how devastating a home insurance battle can be.
"My wife had just come in from a bike ride and was screaming and yelling. I opened the door and there was water running through the house," Carrington said.
Thinking it was a broken line, he immediately turned off the water, but water continued to gush through his home.
"Everything you flush down your toilet was inside our house," he said.
A plumber determined there was nothing wrong with his home's plumbing.
When FOX 4 reached out in 2020, the City of Richardson denied Carrington's allegation that the city caused the problem.
"Never seen anything like this. There was no way to stop it," Carrington said.
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Texas homeowners battle rising insurance rates, lawmakers offer no help
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In the aftermath, Carrington thought his insurance company would help him salvage his home and replace his ruined belongings.
"Weeks go by. I get a check in the mail for $5,000 for water pump backup. I'm thinking, you've got to be kidding me," Carrington said.
"The damages on the house were estimated at over $120,000," he continued.
The Carringtons couldn't keep up with rent while paying their mortgage and covering the cost of repairs.
"We lost everything in the process," said Carrington.
Carrington hopes that lawmakers will be able to make meaningful changes.
"This state is way too good to allow business to be run this way," he said.
The Source: Information in this report comes from FOX 4 interviews.