Have you ever been suspicious of the cost of your home insurance coverage? According to The National Association of Insurance Commissioners and The Dallas News, individuals in states select states may be paying hundreds to thousands of dollars more than owners in other areas. According to reports, home owners in Texas have the highest insurance premiums, totaling an average cost of $1,409 per year. Not far behind, Florida residents average $1,386, while Louisiana has the 3rd highest reported costs at $1,257 per year.
Reasons for Rate Variations Across the Country
As the National Association of Insurance Commissioners further reveals, the average cost of a common American home insurance policy was approximately $804 per year-which means that the average home owner in Texas is paying almost twice as much as the average American. In examining the costs in Texas, some experts argue that the state’s insurance rates are caused by the area’s unstable and often dangerous weather. Specifically, as Texas has experienced hurricanes, tornadoes, extreme heat, and even snow in the past several years, the shifts in weather can result in serious erosion and damage to home owners’ properties.
Yet, aside from the weather, the sharp increase in insurance costs for Texans has been additionally blamed upon annual premium increases over the past several years, resulting in record profits on the part of insurance providers. To address this increase, as well as similar increases seen in states across the country, the Legislature is planning to evaluate potential measures to increase the regulation of insurance companies. Specifically, one potential regulation may involve mandatory state approval of all major insurance hikes before increases are sent to policy holders.
As Texas residents, as well as home owners in other states, have reported record high premium costs while noticing a decline in their insurance coverage benefits, the Legislature is hoping to eradicate unjust insurance charges before this pattern continues to devastate policy holders. As Texas leaders have already confronted insurance premium issues with insurance law reforms in 2003, citizens are eager to see if this more recent evaluation of insurance practices will result in more economic benefits and shifts.
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