Dallas Morning News
January 19 , 2006

Re: "In Texas, a costly premium – Rise in home insurance rates slows, but price is twice the U.S. average," Friday news story.

This article contained several misrepresentations that I would like to clarify.

Citing the new report from the National Association of Insurance Commissioners, your reporter compares Texas premiums against other states. However, the NAIC warned against these types of comparisons, which are flawed due to different types of policies and weather-related risks.

The article also states that there is little evidence that premiums have changed significantly since fall 2003. However, the report is a look at 2003 and does not measure post-reform changes, which began in October of that year. In fact, nine of the 10 largest carriers have reduced rates since late 2003.

Texas homeowners' insurance rates have fallen significantly since the reforms of 2003. The market has stabilized, competition has returned, more companies are in the market and Texans can see significant savings by shopping for the policy that best suits their needs.

I encourage your readers to visit www.tdi.state.tx.us, click on the "Straight Talk About Insurance" link and read about what is happening in the Texas market.

Jim Hurley
Public Information Director
Texas Department of Insurance, Austin

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