Dear Agent,
On March 19, 2020, the Texas Department of Insurance approved rate changes for the Texas FAIR Plan Association’s (TFPA) Homeowners, Dwelling, Tenant, and Condominium coverage forms. The rate changes will apply to new and renewal business beginning May 1, 2020.
The rate changes vary for each individual policy depending on territory. Please review the chart below for the different percentages per territory.
| Region |
Territory |
Homeowners |
Dwelling |
Tenant |
Condominium |
|
|
|
Fire |
EC |
|
|
| Central North -Greater Dallas/Ft. Worth |
2, 3, 4 |
10.0% |
-1.2% |
10.0% |
10.0% |
10.0% |
| Central North - Remainder |
16C, 16S, 17, 19C |
10.0% |
-1.2% |
10.0% |
10.0% |
10.0% |
| Central South |
5, 6, 7, 12, 13, 14, 15C |
10.0% |
-1.2% |
10.0% |
2.6% |
10.0% |
| North/Northwest |
15N, 16N, 18, 19N, 20 |
10.0% |
-1.2% |
10.0% |
5.6% |
2.9% |
Seacoast -Tier 1
|
8, 9, 10 |
10.0% |
-1.2% |
-10.0% |
10.0% |
4.5% |
Seacoast -Tier 2
|
1, 11 |
7.3% |
-1.2% |
10.0% |
10.0% |
10.0% |
| Statewide Average |
All |
7.9% |
-1.2% |
9.5% |
9.4% |
9.2% |
Texas Insurance Code Chapter 2211 requires that the Texas FAIR Plan Association set rates in an amount sufficient to carry all claims to maturity and to meet all expenses incurred in the writing and servicing of the business. The TFPA Board analyzed and considered the 2019 actuarial analysis for TFPA before submitting the filing for approval by the Commissioner of Insurance on December 20, 2019.
Based on guidance from the Texas Department of Insurance, TFPA is exploring potential measures to provide relief to policyholders who may temporarily experience difficulty paying premiums due to the COVID-19 Coronavirus outbreak. We will update you on any such measures as they are implemented.
If you have any questions about these rate changes, please call us at 1-800-979-6440 or contact Agent Services at agentservices@twia.org.
Sincerely,
Texas FAIR Plan Association
|
