AUSTIN – Bill Peacock, Texas Public Policy Foundation’s vice president of research and director of the Center for Economic Freedom, will testify before the House Insurance Committee in support of House Bill 930 on Tuesday, April 9, 2013, at 2:00 p.m. in E2.026 at the Texas State Capitol. 


HB 930 will allow insurers to non-renew policies in which a second loss was caused by failure to properly remediate a prior loss. By promoting the use of actuarially sound principles in determining coverage, HB 930 will enable insurers to focus on providing financially solid service to the vast majority of responsible homeowners.


According to the Texas Department of Insurance, the state has over 4 million homeowners’ insurance policies in force.  These Texans currently pay some of the highest homeowners’ insurance rates in the country—the average homeowners’ rate is 28 percent higher in Texas than the national average.


“In addition to the forces of nature like hurricanes, tornadoes, and hail, one reason for Texas’ higher rates is that a small portion of the insured takes advantage of the claims process,” said Peacock. “In Texas, homeowners’ insurance fraud is second only to motor vehicle fraud for referrals to prosecution. Irresponsibility, such as not fixing previously known problems on their own property is also a challenge. Yet Texas law restricts the ability of insurance companies to non-renew policies, allowing these abuses to drive up rates for everyone else. HB 930 will help eliminate this pattern.”