Progressive not writing new homeowners policies in Texas

Climate change strikes again, as insurance companies back off from storm-prone areas. Texas is the latest to see homeowners policies restricted. (c) ConsumerAffairs

Climate change strikes again, as insurance companies back off from storm-prone areas

It's not just California and Florida where homeowners are finding it increasingly difficult to find insurance. Progressive has pulled out of Texas and says it won't be writing any new policies for the moment.

“Reducing the impact from weather-related volatility is strategically important," Progressive Insurance CEO Tricia Griffith said in a letter to shareholders.

The action follows massive damage in the Houston area from Hurricane Beryl. Foremost Insurance, a holding of Farmers Insurance, stopped writing and renewing new policies a little more than two weeks before Beryl hit.

In a letter to a customer, Progressive said: “We recently reviewed our exposure and risks relating to natural and catastrophic losses, and have determined that we will no longer offer this insurance program in your area. As a result, this policy will not be renewed at the end of your current policy term," the Houston Chronicle reported.

Not only is it hard to find a new policy, but holding onto an existing one is also tough as companies increase their premiums to cover losses from new storms. 

One Texas resident said their premium went from $2,600 last year to $8,800 in just the last year.

Homeowners aren't completely high and dry if they can't find a commercial policy. There's something called the Texas Fair Plan Association, a state body that helps people denied coverage get home insurance.

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