That doesn't sound right. According to NAIC, discounts are the decision of the
carriers so long as they are applied uniformly, they are not a legislative
option. So I can only assume it's a rumor that's been taken by some as a
governmental mandate.
The Texas State Board of Insurance makes all the decisions seemingly based
mostly on what insurance companies tell them which is why we now have the
highest rates in the country and its darn near impossible to get home
owner's insurance period. This year the policies that were $750-$900
suddenly went to $2500.or so but many people are simply refused coverage.
Anything that was flood damged during tropical storm Allison is mostly
uninsured because you need a home inspection certificate before you can get
coverage. Since several hundred thousand people in this area did not have
govt flood insurance many people just lost everything cause home owners
insurance doesn't pay anything until the govt flood policy pays off. On my
block there are around 36 homes and it was easy to see who had flood
insurance because the ten or so who had insurance got their homes pretty
much rebuilt while the others just sit dormant. Many homes were rented and
of course those folks just walked away leaving the absentee owners to deal
with repairs. Since the only FEMA assistance for renters is some rent money
while the landlord repairs the property (if the landlord repairs the
property) most people just moved somewhere else. Lots of the houses are now
vacant and we had less than 2 feet of water. I helped a friend move out of
his house and there were chairs stuck in the ceiling because the water was
quite a bit deeper there - he had no insurance because he couldn't qualify
to get a policy. The insurance companies run the state board and while the
AG tries to make it look like he's going after them - several companies just
pulled out of the state.
Its really bizarre because went I went into the alarm business you hassled
with every customer's insurance company because every retail account had
insurance. Now, only jewelry stores have insurance and thats because they
have a coop called Jeweler's Mutual that insures them. We have a
high-dollars auto parts warehouse that has insurance because they have
nothing but expensive foriegn car parts and thats about it. Nobody else has
insurance any more. The state requires businesses to have public liability
and the landlords require fire and windstorm so everyone has TMP - Texas
Multi Peril - and that covers fire, theft, windstorm, hail, public
liability, Nobody carries the coverage for burglary or vandalism or
hoolaganism (those two are NOT the same thing). TMP has theft coverage but
it is limited to $500. if you witnessed the theft - otherwise there's none.
TMP runs $1000. a year but to add burglary coverage would start at $2250. a
yr additional and the limits are $7500. total - nobody is going to pay that.
They charge $1000. a yr to add glass coverage and it usually does NOT
include boardup costs or any security guard.<g> Its just a bad joke.
I just remembered we have an ice house that has insurance (and an approved
alarm system) because he bought a new ice machine on a lease/purchase
agreement and they require coverage until he pays off the purchase - we do
see some of that but you can be sure he will drop the coverage at the first
point he can. Otherwise peeps just don't have insurance anymore.
