HOUSTON – It’s a move that seems to benefit the insurance giant, but the realtor who spoke to KPRC 2′s Deven Clarke expects it to have a major impact on the local buyers’ market.
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“Homeowners insurance is, I mean, one of the most important things because if anything happens you want to make sure your home is insured,” said Cathy Treviño, the immediate past chair for the Houston Association of Realtors.
She also emphasized that homeowner’s insurance is mandatory for buyers who take out a mortgage.
“What I understand is Progressive was one of the top ten largest real estate companies in Texas,” Treviño said.
Now Progressive no longer offers the option for new home insurance policies in the state.
“In Texas, you’re starting to see more and more, you know, stronger natural disasters and so you’re seeing, unfortunately, providers pull out,” Treviño said.
In a report, filed with the Securities and Exchange Commission, Progressive’s CEO, Tricia Griffith’s letter to shareholders partly reads, “Reducing the impact from weather-related volatility is strategically important and shifting our geographic mix continues to be a top priority,”
It goes on to say, “We continue to focus on growing in states where weather risk is relatively lower, while maintaining or reducing our market share in higher volatile states that are more susceptible to catastrophic weather events and have higher exposure to hail.”
“Tornadoes we’re seeing wildfires, hurricanes, hail, all of these things have a large factor into insurance companies and because we’re seeing more and more of it, they’re paying a lot more out,” Treviño said. “It’s really putting a pinch on homebuyers.”
Progressive’s move does not appear to affect people who already have homeowners’ insurance with them, but Treviño says she’s already seen homeowners’ insurance renewal rates increase between about 10-23 percent across the board.
It’s a trend she expects will continue to ramp up in our state.