Homeowner’s insurance laws are regulated by individual state agencies as opposed to a federal regulatory agency, states FindLaw. Thus, main homeowner's insurance laws differ from one state to the next. A large number of states have homeowner’s insurance laws that touch on fairness, lawfulness and general conduct of insurance business.
In California for example, building owners are required by law to insure their buildings. However, only the building itself and related structures are covered under the homeowner’s insurance plans. Insurance protection does not extend to the tenant’s personal items such as furniture and electrical appliances. Tenants in California therefore have to buy a renter’s insurance policy if they wish to have insurance protection for personal property. Renter’s insurance also provides liability coverage for tenants, explains the California Department of Insurance.
In Texas, one of the main homeowner’s insurance laws touches on the question of insurance rates. Section 2251.051 of Texas insurance law explains and defines excessive, inadequate and discriminatory homeowner’s insurance rates. Excessive rates are those likely to produce an unreasonably high long-term profit. Inadequate rates are those that are insufficient to maintain the projected expense and losses. Discriminatory rates have no sound actuarial principles; do not bear a reasonable relationship with the expected expenses and losses; and are based on creed, color, race or ethnicity, among other discriminatory categories, according to the Texas Department of Insurance.