Regulating the Texas Homeowners Insurance Market
Our home is usually the biggest investment that most of us have; having insurance is essential to the financial well-being of every homeowner.
Variable Texas weather, and the size and geographic diversity of the state, present many challenges for insurers and policyholders alike.1 The availability and affordability of homeowners insurance can vary dramatically from the panhandle to the Gulf coast to the piney woods of the east.2
The Texas Department of Insurance (TDI) is the state agency that regulates the business of insurance in Texas. Homeowners insurance is chiefly regulated through:
- Licensing of companies and agents
- Financial oversight/solvency of companies
- Consumer assistance & complaint resolution
- Claims handling oversight & enforcement of the law
- Fraud investigation
- Form/policy review & approval
- Rate review
TDI's goal is to regulate the industry fairly and diligently, promoting a stable and competitive marketplace and ensuring that consumers have a wide range of choices at fair prices. Information about shopping for homeowners insurance can be found on the TDI website at http://www.tdi.texas.gov/pubs/consumer/cb025.html. TDI also maintains HelpInsure.com to help with your home and auto research.Next: By the Numbers >
1 For more information about weather risks in Texas compared to other states, see National Climatic Data Center (U.S. Department of Commerce) “Billion Dollar U.S. Weather Disasters”.
2 For a comparison of average homeowners premiums for different regions of Texas, see Exhibit 7.
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