Rule to protect Texas homeowners with past claims

[Guest guest]

http://www.chron.com/cs/CDA/story.hts/topstory2/1562349

Sept. 5, 2002, 12:29PM

Rule to protect Texas homeowners with past claims

Associated Press

AUSTIN - Insurance Commissioner Montemayor will issue a rule this week

to prohibit insurers from denying coverage to homeowners based on prior mold

or water claims.

Montemayor, who told a Senate committee about the rule Wednesday, said the

regulation is aimed at protecting the increasing number of homeowners who

are having problems obtaining insurance because they filed mold or water

claims.

The Texas Department of Insurance spokesman said the rule will say an

insurer cannot refuse to renew or sell a policy to a homeowner because the

homeowner has made a water claim, as long as the damage has been repaired.

Insurance companies will have 30 days to request a hearing to discuss or

contest the rule, which would carry a $10,000 fine. If there's no

opposition, the rule would become law 10 days later.

Several insurance companies have been rejecting such customers as they try

to control their record losses from mold and water damage. Besides

restricting who they sell to, most insurers also have raised rates

dramatically in the last several months.