Saturday, January 12, 2008

Home insurance remains high

From the Dallas Morning News:

AUSTIN – Texas homeowners still pay far more for insurance than those in any other state, even after the overhaul passed by the Legislature four years ago that was supposed to lower rates.

A new study from the National Association of Insurance Commissioners showed that the average annual premium in Texas for the most common homeowner policy was $1,372 a year, considerably more than the nationwide average of $764.

Louisiana was the second-highest at $1,144, and Florida was third at $1,083. The premiums in all other states were less than $1,000.

But the study also showed that other states are closing the gap. Many of their rates have seen double-digit increases in recent years, while Texas rates have stabilized. The study is based on premiums collected in 2005.

Texas has historically been among the most expensive states for home insurance, in large part because of its pattern of severe weather conditions such as hurricanes, hailstorms and tornadoes. A rash of mold claims in the early part of the decade caused even higher rates.

That led state lawmakers to pass a major insurance reform law in 2003, with promises to consumers that they would get some relief in the cost of home insurance.

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