Bay Area Houston

And you wonder why your insurance premiums are so high?

I filed a claim for roof damage after Hurricane Ike in 2008. I received about $5000 from USAA, my insurance company at the time. Bids for the roof replacement ranged from $10,000-$16,000. At the time I did not have the extra funds to pay for the roof and since there was no leaks I put the repairs off for 2 years.

In 2010 I had my roof replaced for $4800. One of the companies that quoted over $10,000 in 2008 provided a quote of $6800 in 2010. At the time I knew the Commissioner of the Texas Department of Insurance and mentioned the price gouging after a hearing in Austin. Soon afterward he left the Commission and I ended my consumer activism.

So here we are in 2024 and I filed a claim for hail damage. Eventually I had my roof replaced for a cost that was listed at $24,000 about 5 times what I paid in 2010 just 14 years ago. I’ve heard from others in my subdivision whose estimates were even higher, $32,000 for one homeowner. What is disturbing is that the insurance companies are paying these inflated prices. It’s a win-win for the roofer and the insurance company who can simply pass the inflated cost to consumers in higher premiums. Everyone is happy except for the consumer.

Last year Harris County Attorney filed a number of suits resulting in settlements for price gouging of gasoline. According to Houston Public Media:

The Bellaire location allegedly sold regular unleaded gasoline for $3.79 and $4.29 per gallon, an increase of 25% and 41% respectively from the gas station’s pre-hurricane price of $3.03. The Baytown location was allegedly selling premium gasoline for $5.49 per gallon, which is 44% higher than the gas station’s pre-hurricane price of $3.80.

Price gouging after an event like a hurricane is illegal. Raising the cost of a gallon of gas by 40 cents can be considered price gouging and could be investigated by the County Attorney. Charging 2 to 4 times the regular price for a roof should be considered price gouging.

I’ve asked the County Attorney to investigate.

This entry was posted on Thursday, December 19th, 2024 at 7:43 am and is filed under Consumer. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.