The Texas Department of Insurance (TDI) issued a bulletin pushing home insurance companies to give premium discounts to homeowners who make their homes more resistant to damage from storms and wildfires, the agency said in a Sept. 15 news release.
Homes built with stronger materials and methods, such as roofs that meet the Insurance Institute for Business and Home Safety FORTIFIED Home standard, are less likely to need costly repairs after severe weather, according to TDI. When insurance companies have fewer and smaller claims to pay, they can pass those savings to homeowners through lower premiums, the agency said, adding that making sure homeowners benefit from the risk they have reduced is an important part of making insurance more affordable in Texas.
“When homeowners make their homes stronger, they’re protecting their property and helping reduce costs for themselves and their communities,” TDI Commissioner Amanda Crawford said in the release. “Texans who invest in reducing risk should see the benefit of those investments reflected in what they pay for insurance.”
TDI also recommends changes to state laws that would require insurance companies to consider whether a homeowner has taken steps to protect their home from wind, hail, and wildfire damage when setting rates, the agency said. The next legislative session begins in January, according to the release.
The bulletin is one of five directives Gov. Greg Abbott issued to TDI in August as part of his efforts to make auto and home insurance more affordable, the agency said.
Texans with questions about insurance can call the TDI Help Line at 800-252-3439 or visit the agency’s website. TDI also pointed consumers to resources on how auto and homeowners insurance costs are calculated and on lowering home insurance costs by asking for discounts.