Ten months after severe storms hit the D-FW area last spring, one of my colleagues is still trying to get an insurance settlement to repair damage to her house from a falling tree.

In the meantime, her neighbor's house, damaged in the same storm, has been fixed.

My colleague is not alone. Many Texas homeowners have faced delays in getting their insurance claims resolved, or denials.

Insurance is complicated and getting information that makes sense can be difficult. And in Texas, which has the highest average homeowner insurance premiums in the country, such information can affect your bottom line.

So how can you get more information before you purchase a policy? And what can you do if you have a problem?

A good starting place is the Texas Department of Insurance Web site. It lists premium rates by company and city, along with complaint information. It also lists any penalties in Texas against the company and in some cases, penalties in other states.

In Dallas, for example, TDI lists 30 companies that write homeowner policies in addition to the Texas FAIR Plan Program, which provides coverage for those unable to get coverage elsewhere.

IDS Property Casualty Insurance Co. has the highest average premium, ranging from $1,260 to $1,779 a year depending on the age and structure of the house. The figures are averages, so what you pay may vary. But the list should give you a good idea of what the going premiums are for various companies in your area

United Fire Lloyds has the highest complaint index: 5.65. The average for all companies is 1.0. The index is based on the number of complaints compared with the number of policies written.

The TDI site also lists what type of policies companies write in your area. Those labeled as HO-A cover only cash value, not replacement costs. Depreciation, or wear and tear, is subtracted from the claim amount. Other policies cover replacement costs. Some companies write only certain types of policies in different areas of the state. Some also create their own policies that don't fall into one of the basic categories. Many policies also list damages that they do not cover, so read your policy carefully.

The "Agent Lookup" tool on the TDI Web site lets you verify whether an agent is licensed in Texas and what types of insurance the agent can sell.

If you have a problem relating to insurance, you can file a complaint with TDI. Hundreds of Texas policyholders do that every year.

In 2006, TDI received more than 3,000 consumer complaints about homeowners insurance. After investigating, the TDI found merit to about 60 percent of those complaints. When companies or agents violate state insurance laws, TDI may fine them. In some cases, it may suspend or revoke an agent's license.

The most common complaints in 2006 were from consumers who had not received a premium refund they believed they were owed. Many complaints also were filed because of delays in processing claims, or denials of claims, by insurers. Other complaints ranged from poor customer service, to excessive rates, to the use of credit scores by insurance companies.

To search complaints nationally for a specific company, go to the National Association of Insurance Commissioner's Web site at www.naic.org.

For more information or to file a complaint in Texas, go to www.tdi.state.tx.us/consumer.

READER COMMENTS

Dear Ms. LeFleur,
Have you read the article, The Ten Worst Insurance Companies in America produced by the American Assocaition for Justice? Have you heard about Allstate's written policy, the McKinsey & Co. plan, that gives "good hands" treatment to homeowner insureds who accept less than half what is owed and the "boxing gloves" treatment to insureds who want to be fully paid for their loss? Did you ask the TDI to give you a list of the insurance companies they have fined showing the dates of those actions, how much they [were] fined and if the fine was ever paid? Did you ask the TDI to list how many lawsuits the Texas Attorney General's office on behalf of the TDI has filed against insurance companies and the result of those suits and the fines actually paid? Your story only touches the "tip of the iceberg" on the TDI, consumer insurance costs and complaints. I hope you can investigate this further.

Clint C. Blackman III
Dallas, Texas

Dallas Morning News
03/03/2008

Source: http://www.dallasnews.com/sharedcontent/dws/dn/localnews/columnists/citizenwatchdog/stories/030408dnmetcitiwatch.1cc08a6b.html

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