Texas lawmakers are moving to constrain soaring costs of property coverage by abolishing a system that lets insurers increase rates without prior state approval.
Texas, the nation’s second-most-populous state, has among the highest prices for homeowners insurance in the U.S. and it has seen large spikes in recent years as hurricanes and wildfires have inflicted growing damage.
A bipartisan majority in the Texas Senate ignored industry opposition and approved a measure Wednesday that would force insurers to get state approval before significantly increasing rates. The bill is now in the state House.
Most states including Texas allow property insurers to raise or lower rates on their own and then review the changes after they’ve taken effect. Texas has operated under a so-called file-and-use approval process for decades. In some states such as California — and potentially Texas — insurance regulators must first approve rate changes that exceed a certain percentage.
