Berkshire Hathaway Direct Insurance Company is proposing an average 3.3% rate decrease for its Texas businessowners program, affecting 13,509 policyholders and approximately $23 million in written premium.

The change would reduce aggregate premium by about $760,000. However, individual policy impacts vary significantly, ranging from a 45.1% decrease to a 547.4% increase, according to the filing. The company’s previous rate revision was a 30% increase effective January 2025.

Berkshire Hathaway Direct is also moving away from its existing structure of adopting Insurance Services Office rates and rules with company-specific exceptions. It plans to introduce a complete proprietary rating manual while continuing to use ISO policy forms.

Changes include revised base loss costs, class and deductible factors, building-age and occupancy factors, expense constants and LexisNexis-based insurance scores. The insurer is also adding factors based on mercantile square footage and the relationship between sales and business personal property.

New coverage options include lessors coverage, contractors errors and omissions, bed bug, flood and cyber insurance. Berkshire Hathaway Direct will also incorporate Verisk’s hurricane model into pricing for building and business personal property coverage.

The changes are expected to take effect January 1, 2027, for new business and April 1, 2027, for renewals.