Homeowner insurance rates became a bigger issue in the governor's race on Thursday.
Texas homeowners pay the second highest rates in the nation, according to the National Association of Insurance Commissioners — an average $1,448 per year.
The national average is $822.
Democratic candidate Bill White claims Gov. Rick Perry has done little to help homeowners and said he would support tighter rate controls.
White thinks one way to the governor's mansion is by going home — the Dallas home of James White, who is not related to the candidate — and proposing a new way to regulate home insurance.
"These skyrocketing homeowner insurance rates are an interference with that American dream," the former Houston mayor said.
The average home insurance rate in Texas is higher than any of the surrounding states, some of which get hit with similar destructive weather:
- New Mexico: $667
- Arkansas: $762
- Oklahoma: $1,054
- Louisiana: $1,400
After ordering rates cut about 12 percent in 2003, Texas began a "file and use" system where insurance companies must only notify the state before charging higher rates.
Homeowner James White said he's seen his insurance rate increase almost $600 since 2003. "My house has not appreciated in value; I've had no claims; why would it go up?" he asked.
If the state thinks a rate hike is too high, it must object in court — and that can take years.
Gov. Perry backed "file and use." In Killeen Thursday at a campaign event, Perry declined to talk to a reporter from KWTX-TV about insurance rates.
"We got to roll boys, I’m sorry," the Republican governor said as aides hustled him away.
Candidate White said the solution is rewriting state law to force insurance companies to get prior approval from regulators before raising rates. "If you are a profitable insurance company, you have to show the reasonableness of any rate increase before it goes into effect," White said.
Perry campaign spokesman Mark Miner said White's plan "would most likely result in increased rates for Texans," but he wouldn’t explain how.
Does Perry still favor "file and use?"
"The Governor has and will continue working with the legislature to address homeowners insurance," Miner said.
Twenty-four states require prior approval of insurance rates; White thinks Texas should join them.
E-mail bwatson@wfaa.com
