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Press Release
 
Monday, July 24, 2006  

VO WELCOMES STATE REJECTION OF INSURACE RATE HIKE REQUEST
Lawmaker Says Area Still Dealing With Aftermath of Hurricane Evacuees, Highest Homeowners' Insurance Rates in Nation

Alief, Texas - State Representative Hubert Vo today welcomed the decision by state officials to deny a leading insurance carrier the right to arbitrarily increase homeowners' insurance rates by as much as 39 percent along the coast in response to claims filed in the wake of hurricanes Rita and Katrina.

"This rate hike rejection will help families hold onto their homes," Vo said, adding that the denial is especially welcome news for homeowners in Fort Bend, Galveston, and Harris counties.

Vo wrote to Texas Department of Insurance officials last month to urge them to deny the request by State Farm, the state's leading insurance carrier, saying the rate increase was unjustified.

"Texas homeowners already pay twice the national average to protect their homes," Vo said.

 

The rejection comes in the midst of a court battle in which State Farm is fighting to avoid reducing its rates by 12 percent as ordered by the state more than two years ago.

Even without the rate hike, Vo said, Texas homeowners are paying twice the national average to protect their homes, more than homeowners in comparable states such as Florida and California, where natural disasters are more costly.

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