Texas Home Insurers Seek Lawsuit Protection Despite Healthy Profits

Texas home insurers saw a third straight year of healthy profits in 2014 due to higher rates and fewer severe storms across the state.

But The Dallas Morning News reports a rising tide of lawsuits filed by homeowners in recent years has companies worried that more could be on the way. The industry seeks legislation that would curb homeowners’ ability to sue insurers for unpaid claims or unfair practices.

State insurance department records show though that those lawsuits didn’t hurt companies’ bottom line last year.

Insurers paid out an average 46.4 percent of their premiums to cover property losses in 2014. Rates of 60 percent or lower are considered a good target for profitability, and most large companies hit that benchmark last year.

Related:

• Industry, Consumer Group Spokesman Express Opposition to Texas Windstorm Bill
• Bills Aimed at Property Claims Litigation Expected in Texas Legislative Session
• Attorneys, Insurers Facing Off over Hail Litigation in Texas