The Texas Senate on Wednesday passed legislation intended to provide relief to Texas homeowners and drivers facing rising insurance costs, as well as lower housing expenses for senior citizens and disabled individuals.
Senate Bill 1643, authored by Georgetown Senator Charles Schwertner, would require insurance companies to obtain pre-approval from the Texas Department of Insurance (TDI) for rate changes exceeding ten percent. Schwertner highlighted significant increases in homeowners and auto insurance premiums in recent years under the state's "file-and-use" system, where rate hikes can be implemented before TDI review. He argued that pre-approval would offer consumer protection while still allowing insurers flexibility to respond to market conditions. The bill applies to both upward and downward rate changes to prevent predatory pricing practices.
Schwertner also saw the passage of SB 1642, which proposes restructuring the TDI from a single commissioner to a three-commissioner panel. This change, according to Schwertner, aims to improve the agency’s responsiveness to both consumers and insurance underwriters within the state’s $290 billion insurance market.
Additionally, the Senate approved SB 23, authored by Houston Senator Paul Bettencourt, which would raise the homestead exemption to $200,000 for homeowners aged 65 or older or those with disabilities. This follows an earlier bill, SB 4, which increased the homestead exemption for all homeowners to $140,000, providing seniors and the disabled with a $150,000 exemption. Bettencourt stated that these combined measures, along with previous tax compression efforts, would result in nearly $1,000 in annual tax savings for senior homeowners, potentially eliminating school maintenance and operation taxes for a "super-majority" of them. Lt. Governor Dan Patrick emphasized the significant increase in homestead exemptions for seniors over the past decade as a step towards providing meaningful property tax relief.
