Texas Department of Insurance

Helping Texans with their auto, commercial and residential property insurance needs.

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The Law Governing Homeowners Insurance Rates

Law Building

Texas law provides TDI with the authority to both prohibit unfair practices and to promote a competitive marketplace.

Texas Insurance Code
Title 10, Subtitle H, Chapter 2251: Rates
Sec. 2251.001. PURPOSE:

  1. promote the public welfare by regulating insurance rates to prohibit excessive, inadequate, or unfairly discriminatory rates;
  2. promote the availability of insurance;
  3. promote price competition among insurers to provide rates and premiums that are responsive to competitive market conditions;
  4. prohibit price-fixing agreements and other anticompetitive behavior by insurers; and
  5. provide regulatory procedures for the maintenance of appropriate information reporting systems.

SUBCHAPTER B. RATE STANDARDS

Sec. 2251.051. EXCESSIVE, INADEQUATE, AND UNFAIRLY DISCRIMINATORY RATES.


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