Texas’ insurance regulator has blocked for the fifth time in six years a premium increase sought by a large, state-chartered property insurer, saving policyholders money but raising fears that the insurer will be unable to pay claims.
The decision concerned the insurer, which has said for years that its rates are so low that it might have to impose special fees on every insurer in Texas, which would be passed on to policyholders.
The Texas Windstorm Insurance Association sells wind and hail coverage to nearly 270,000 homes and businesses on the hurricane-prone Texas coast. It’s one of the state’s largest property insurers.
The rejection of the association’s proposed 10 percent rate hike comes at a perilous time for property insurers and owners. Across the nation, insurers are raising rates and withdrawing from disaster-prone areas, which is forcing people to pay higher premiums, drop property coverage or buy policies from insurers of last resort such as the Texas association.
