By Bill Zeeble, KERA 90.1 reporter
Dallas, TX – Bill Zeeble, KERA 90.1 reporter: Of the hundred or so homeowners who showed up at North Dallas High School, many have lost their insurance because they held policies with Farmers, which is pulling out of the home insurance business in Texas. Robert Miller says he filed a mold claim with his company three years ago and since then, life has become a nightmare.
Robert Miller, homeowner: We are in a hotel room now and have been for the past six months, with four kids and two dogs. Our whole house was destroyed. Every floor was ripped up. Throughout the process, the insurance company tried to deny damage, deny! We can't live in our home; it's uninsured, no company will cover it. We're in harms way because of a series of water leaks. It's not right, not fair, and my family is miserable.
Zeeble: Nearly everyone at the meeting - like retired teacher Dr. Sidney Kay - complained of skyrocketing homeowner insurance rates.
Dr. Sidney Kay, retired teacher: Mine was a modest increase, 36%, and I've been with State Farm 15 years and never claimed a dime. I don't know why my rates should go up that high. I'm not interested in talk. I want action. We want action!
Zeeble: Action is the responsibility of the legislature, which doesn't meet for another four months. That's why Senator Royce West, who called this meeting, doesn't want to wait.
Texas Senator Royce West: Given what's going on in the insurance industry, given the economy and dollars having to be spent by consumers, it warrants a special session.
Zeeble: But West says he doesn't expect the Governor to call an emergency legislative session. That leaves Insurance Commissioner Jose Montemayor to pursue the temporary solution he offered Wednesday, which he calls the most viable. He wants to extend coverage statewide to those who need it using the Texas Windstorm Insurance Association. The limited state-run program now only provides high wind coverage to Texans in Gulf Coast counties.
Jose Montemayor, Texas Insurance Commissioner: My intention and I have it up for a hearing on Thursday the 10th, is to move it away from just the 13 counties and expand the area to every county in Texas. In addition, to provide additional coverage beyond just windstorm, to others like fire, etcetera - basic, basic coverage. But we have to have a mechanism that insures people don't get dropped through the cracks.
Zeeble: There's just one problem, though.
Jerry Johns, representative, Southwest Insurance Information Service: We don't know if it's doable.
Zeeble: Jerry Johns is with the Southwest Insurance Information Service that writes 85% of the state's property insurance policies.
Johns: The expansion of this came as a shock to us. We want to cooperate and are looking into it. We're not sure it can be done.
Zeeble: Johns says there are legal, financial and staffing issues that'll take time to study. He says the real solution to this crisis lies in deregulation. Remove extensive state oversight, he says, and customers will happily get decent, affordable, insurance, while allowing companies to make money, which they aren't now. Commissioner Montemayor doesn't buy it.
Montemayor: 95% of all policies submitted are through companies not subject to rate regulation. I have a hard time reconciling the fact that they're over-regulated. I think you can expect the legislature to talk about that next session.
Zeeble: The Insurance Commissioner says he expects some legislative plans to be unveiled in December, at the earliest. For KERA 90.1, I'm Bill Zeeble.
To contact Bill Zeeble, please send emails to bzeeble@kera.org.