Homeowners insurance is costing Texans more and covering less.

Insurers say that dropping or decreasing certain coverage allows them to control costs and, in turn, keep a handle on the rates they charge to customers. Consumer advocates say it’s a reflection of lax oversight resulting from an overhaul of Texas insurance laws eight years ago.

Since then, many insurers in Texas have limited coverage for mold damage, limited wind damage coverage to named storms and in some cases eliminated windstorm coverage altogether in coastal areas.

More recently, State Farm, the state’s largest insurer, said it plans to move new and renewing customers to a minimum 1 percent deductible starting in December.

That means deductibles will be calculated as a percentage of a home’s insured value rather than a flat dollar amount, increasing how much homeowners would pay out of pocket before collecting on insurance.

The Texas Department of Insurance reported earlier this year that a survey of insurers making up 90 percent of the Texas market found that many dropped or reduced coverage compared to the standard homeowner policies they sold before the laws changed in 2003.

Eighty-seven percent of the insurers had less coverage for leakage from plumbing, air conditioning or heating; 72 percent had less coverage for sewer backups and 67 percent had less coverage for foundation and slab damage.

That could mean they reduced or eliminated coverage for certain types of damage. For example, the department report said, some insurers now cover water damage from sudden pipe breaks, but not from slow or repeated leaks….

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