Insurance Rates Skyrocketing - KLTV.com - Tyler, Longview, Jacksonville |ETX News

6/5/02 - East Texas

Insurance Rates Skyrocketing

  New premium comparisons from the Texas Department of Insurance shows, in some cases, rates are doubling.

  "It makes me mad to think that they're taking advantage of me," says homeowner Charlotte Parks. Without notice and given no options, she says her home insurance company doubled the rates. Never having a claim, the cost went up from 620 dollars to over 12 hundred dollars in a years time.

  "When insurance premiums double, that affects our lifestyle," Explains homeowner Cherry King. Not only are rates soaring, but King is shopping for a new company. Trinity Lloyds Insurance told her to get rid of her backyard trampoline or her policy would be canceled. "We don't have any claims," she tells. "We're the perfect client and we've had this trampoline for several years and I had no idea that a trampoline could cause us to loose our insurance."

  Agents like Ed Nolan says there's one major reason for the ongoing insurance crisis, "There have been a lot of mold claims." Toxic black mold creeping in homes across East Texas are creating landslide lawsuits.

  "I think it's bigger than greedy insurance companies," King believes. "I think it's greedy consumers too that are wanting to sue for big major bucks."

  If you'd like to help change the raising rates, the best thing to do is voice your concerns with The State Board of Insurance. That number is 1-800-578-4677. The Tyler Better Business Bureau is receiving many calls on homeowners insurance. They say calling the complaint board with the State Insurance Board is the most powerful thing a homeowner can do.

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