National Flood Insurance Program
Policies in force: 679,389
Insurance in force: $152,359,081,900
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Texas Windstorm Insurance Association
$37.8 Billion (55%) Liability Increase
CY 2004-2008
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Congressional recess causes headaches
By Laura Elder - The Daily News, April 1, 2010
High and dry: Everything’s better now, but area banks, Realtors and insurance agents were left in a lurch when the National Flood Insurance Program expired Sunday, barring consumers from buying or renewing policies required for many mortgages in these parts.
“If you had a loan closing on Monday, you were instructed that flood insurance wasn’t available,” Vic Pierson, president of island-based Moody National Bank, said.
“It caused a stir. A lot of people in the industry were anxious about how to take care of their customers.” Read more . . .
Windstorm insurer picks up pace on Ike settlements
By Purva Patel - Houston Chronicle, January 14, 2009
The Texas Windstorm Insurance Association, under fire by state regulators and policyholder attorneys for how it handled claims after Hurricane Ike, is accelerating the pace of settlements.
TWIA has been meeting with policyholder attorneys to resolve cases in batches, said Jim Oliver, general manager of the association.
“In the past, TWIA mediated possible settlements on an individual basis,” Oliver said. “We are now working with plaintiffs' attorneys to handle mediations in groups and deal with them more quickly, which is to everyone's benefit.”
TWIA, created by state government but privately managed, is the windstorm insurer of last resort for homeowners and businesses in coastal counties most vulnerable to hurricanes. Read more . . .
This Just In: Recent civil suits filed in Orange County District Courts
By David Yates - Southeast Texas Record, January 11, 2010
Dec. 17
Debra Townley vs. National Lloyd's Insurance Co. et al
PA - Steve Mostyn, J - Buddy Hahn
The plaintiff is suing the insurance company and several of its adjusters for denying at least a portion of the plaintiff's Hurricane Ike policy claim. Read more . . .
Texas homeowners' insurance rates drop to No. 2 in new study
By Robert T. Garrett - Dallas Morning News, December 30, 2009
AUSTIN – Texas has slipped to No. 2 in average homeowners' insurance premiums, a new national study has found.
It's not that rates are decreasing. The study found Texans paid nearly 3 percent more in 2007, the most recent year studied, than the previous year.
But Florida, battered by hurricanes in recent years, vaulted over Texas in costs, according to the report issued Tuesday by the National Association of Insurance Commissioners.
It found that the average annual premium in Texas for the most common homeowner policy was $1,448 a year, 76 percent higher than the national average of $822. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Journal, December 17, 2009
A total of four new lawsuits regarding hurricane damage claims were filed against insurance companies in Jefferson County District Court, Dec. 7-11, 2009.
The following complaints were filed. Read more . . .
Windstorm insurer strikes back at plaintiffs' lawyers
By Purva Patel - Houston Chronicle, December 11, 2009
Under fire for how it handled Hurricane Ike claims, the Texas Windstorm Insurance Association sent a letter to lawmakers this week criticizing lawyers suing the association on behalf of homeowners.
“These law firms stand to make huge profits if they are successful in these lawsuits, and some are using every means possible to influence public opinion,” Jim Oliver, general manager of the windstorm insurer, wrote in a letter to members of the Windstorm Insurance Legislative Oversight Committee.
The letter is partly a response to a lawsuit filed by Houston attorney Steve Mostyn on behalf of a League City resident—one of hundreds of cases his firm has filed against the insurer. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, December 2, 2009
Two new lawsuits against insurance companies regarding hurricane damage claims were filed in Jefferson County District Court, Nov. 16-20, 2009. Read more . . .
Windstorm rate increase denied
By Laura Elder - The Galveston Daily News, October 17, 2009
Citing hardships already endured by coastal residents because of Hurricane Ike, Texas Insurance Commissioner Mike Geeslin denied a request by a state-backed insurer to raise windstorm policy rates along the coast by 10 percent.
Geeslin on Thursday signed an order denying the Texas Windstorm Insurance Association’s request to raise the rates by 10 percent for residential and commercial consumers, a bit of rare good insurance news after the September 2008 storm.The windstorm association requested the rate increase in August.
Among the factors that shaped Geeslin’s decision were comments by state Sen. Mike Jackson, who said a rate hike would be another burden on Texans still recovering from Hurricane Ike.
The windstorm association, also known as the windstorm pool, is the insurer of last resort to about 231,000 coastal consumers who can’t find coverage through private insurers. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, October 15, 2009
A total of 10 new lawsuits against insurance companies regarding hurricane damage claims have been filed in Jefferson County District Court during the week of Oct. 5-9, 2009.
The following complaints have been filed: Read more . . .
This Just In: Recent civil suits filed in Jefferson County District Courts
By David Yates - Southeast Texas Journal, October 14, 2009
Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran Southeast Texas Record, October 8, 2009
A total of nine new lawsuits against insurance companies regarding hurricane damage claims were filed in Jefferson County District Court, Sept. 28 - Oct. 2, 2009. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, October 1, 2009
A total of four new lawsuits against insurance companies over hurricane damage claims were filed in Jefferson County District Court, Sept. 21-25, 2009. Read more . . .
Thousands of lawsuits wash ashore in wake of Hurricane Ike anniversary
By David Yates - Southeat Texa Record, September 28, 2009
A year after Hurricane Ike devastated Texas coastal cities, thousands of suits against insurance companies have washed ashore and been consolidated into a multi district litigation panel.
But the hundreds of suits filed each week in Beaumont and Houston alone haven't been an issue, thanks to the Ike MDL, says one local judge. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, September 24, 2009
A total of seven new lawsuits against insurance companies over hurricane damage claims were filed in Jefferson County District Court, Sept. 14-18, 2009. The following complaints were filed: Read more . . .
Some insurance companies may be shorting homeowners
Consumers and experts say some payouts to customers should be as much as 20 percent larger
By Mark Greenblatt - KHOU 11 News, September 11, 2009
HOUSTON --Three new proposed class action lawsuits in Texas allege insurance companies are shorting their consumers. The lawsuits say as much as 20 percent is often missing from what their homeowners insurance should provide in a pay out.
The allegations center around the alleged non-payment of something the insurance industry refers to as “overhead and profit” to consumers, which is money insurance companies pay so consumers can afford to hire a professional general contractor when needed to oversee repairs. The money is supposed to provide enough funds to pay for a general contractor’s overhead expenses such as licensing and bonding fees, and also enough to allow the general contractor to make a living. Read more . . .
Unsettled claims and unsettled lives
A year after Hurricane Ike, homeowners waiting for insurance help find themselves wading in red tape
By Purva Patel - Houston Chronicle, September 11, 2009
Life in a trailer in his driveway is a daily reminder of Hurricane Ike for Michael Amoroso.
After waiting months for a response from the National Flood Insurance Program, he was declined a bigger payment that he had hoped to use to rebuild.
For Amoroso and other homeowners like him, the storm did more than damage their property. The unrepaired houses and pending insurance claims are a daily test of their will.
“For months they didn't even return my phone calls or e-mails,” said Amoroso, who plans to sue for more funds. “I am so fed up.” Read more . . .
See what blew in with Ike: a battle
Windstorm insurers, state regulators spar over shingles
By Purva Patel - Houston Chronicle, September 5, 2009
The outcome of a battle between the Texas Windstorm Insurance Association and state regulators could set a precedent for how future roof claims are handled after a hurricane, consumer groups and policyholder attorneys say.
“The lifted shingle issue is not limited to TWIA,” said Alex Winslow, head of Texas Watch, a consumer group in Austin. Insurance Commissioner Mike Geeslin “can either make sure these claims get paid or he can allow TWIA and the other insurance companies to keep denying them.”
The case stems from 23 complaints the department has received about the windstorm association's denial of certain claims that involve lifted or unsealed shingles. Another 14 complaints on the issue are against other companies. Read more . . .
State charges TWIA "unfair or deceptive"
Insurance consortium under fire again
By James Shannon - The Examiner, September 5, 2009
A formal complaint filed by the Texas Department of Insurance (TDI) accuses the Texas Windstorm Insurance Association (TWIA) of "unfair or deceptive" practices in its handling of claims arising from Hurricane Ike. A certified letter to TWIA director Jim Oliver dated August 27, 2009, orders him to respond within 20 days and sets a hearing before an administrative law judge on December 1, 2009. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Journal, September 3, 2009
A total of three new lawsuits were filed against insurance companies over hurricane damage claims in Jefferson County District Court during the week of Aug. 24 through Aug. 28. Read more . . .
A Better Route for Storm Insurance
By Michael A. Smith - Galveston Daily News, August 30, 2009
The most interesting thing about a new law governing windstorm insurance is it acknowledges, in a way, what some close observers have been arguing for years — having wind and flood insurance in separate policies makes no sense. Read more . . .
HURRICANE IKE
State looking into roof damage policy
By Purva Patel - Houston Chronicle, August 28, 2009
State regulators are investigating how the Texas Windstorm Insurance Association handles certain roof claims related to Hurricane Ike. At issue is whether unsealed asphalt shingles are considered damaged, and if so, whether Ike was the cause.
The windstorm association doesn't always think so. But some homeowners say they have valid claims because Hurricane Ike lifted the shingles on their roofs, breaking the seal that binds shingles to each other. Read more . . .
Insurance regulators call windstorm group unfair
By Purva Patel - Houston Chronicle, August 28, 2009
State insurance regulators have accused the Texas Windstorm Insurance Association of deceptive and unfair practices in an enforcement complaint that seeks penalties. The association and the Texas Department of Insurance have clashed for at least a month over the association's denial of some roof-related claims following Hurricane Ike.
“Whatever talks they were involved with did not reach any agreement, so that triggered this formal action,” said Jerry Hagins, a spokesman for the insurance department. At the heart of the issue: the association's practice of denying claims for lifted or unsealed shingles. Read more . . .
Internal Memos reveal controversy brewing for hurricane insurance
By Mark Greenblatt - KHOU 11 News, August 28, 2009
HOUSTON -- Newly uncovered internal memos at Texas Windstorm have revealed a controversial policy that could mean tens of thousands of homeowners may have their hurricane claims denied -- both from Hurricane Ike or any future storm. Consumer advocates and homeowners who have seen the memos say they believe they show Texas Windstorm is not playing fair with consumers.
KHOU uncovered the memos as part of a two month investigation into Texas Windstorm and other insurance companies in Texas. Friendswood homeowner Pat Conner fears he is one of the many consumers who have been affected. He says contractors have found raised shingles on his home, which are one of several problems they say he has with his roof.
“I have several bids from 15 to 17 thousand dollars to replace it,” Conner said. “They actually paid me like $290.” He says he believes the adjuster Texas Windstorm hired to handle his claim revealed part of the reason why to him. “The claims adjuster for Texas Windstorm said he was being pressured by Texas Windstorm to close out my roof.” Read more . . .
This Just In: Recent civil suits filed in Jefferson County District Courts
By David Yates - Southeast Texas Record, August 27, 2009
15 lawsuits filed. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, August 27, 2009
A total of nine new lawsuits against insurance companies over hurricane-related damage claims were filed in Jefferson County District Court during the week of Aug. 17 through Aug. 21.
The following complaints were filed: Read more . . .
No wind without flood under new law
By Laura Elder - Galveston Daily, August 26, 2009
Owners of houses and commercial properties built or renovated on or after Sept. 1 in areas most vulnerable to storm-driven waves won’t be able to buy or renew state-backed windstorm policies unless they can prove they have flood insurance.
The Texas Department of Insurance still is finalizing the rules of the unprecedented requirement that essentially amounts to “hurricane policies” for perhaps thousands of county residents. Read more . . .
Look What Happens When Insurers 'Run Naked'
By Ed Leefeldt - August 19, 2009
Given the uproar at town hall meetings on health care, it’s interesting that Americans seem to be mute on other kinds of government insurance, particularly the type that protects million-dollar beachfront properties.
A recent story in ClimateWire says that public insurance programs in several coastal states are “flirting with the notion of saving millions of dollars by shrinking or canceling the coverage they buy from private reinsurers.”
In insurance parlance, this is called “running naked,” and it’s about as safe as streaking down the street; someone is either going to call the cops or run you over. Read more . . .
Officials: Disaster funding plan flawed
By Leigh Jones - Galveston Daily News, August 19, 2009
GALVESTON — A proposed state funding plan that could give the Houston-Galveston region a smaller share of federal disaster recovery funding than it received earlier this year is flawed, shortsighted and unfair, area officials told state representatives Thursday. Read more . . .
Last-resort insurer wants rates raised
By Purva Patel - Houston Chronicle August 4, 2009
Thousands of homeowners who have policies with the state's insurer of last resort could see another double-digit rate increase later this year.
The board of the Texas Fair Access to Insurance Requirements Plan voted Tuesday to ask state regulators for a rate hike of 19.5 percent.
The company last raised rates in November 2008, when homeowners saw them jump an average 20 percent.
The brunt of the latest increase is needed to help cover the rising cost of reinsurance, coverage the company buys to pay for claims after a catastrophe, said Jim Oliver, general manager of the state created company. Read more . . .
Windstorm pool seeks sovereign immunity
By Laura Elder - The Galveston Daily News, July 22, 2009
The Texas Windstorm Insurance Association wants a judge to give it immunity against paying attorneys’ fees, penalties, interests and other expenses beyond actual damages in litigation claiming it acted in bad faith or maliciously in dealings with policyholders. In Bakht Khattak vs. Texas Windstorm Insurance Association, the insurer is seeking sovereign immunity, which means it can’t be sued without its consent.
If Judge Susan Criss of the 212th District Court in Galveston grants sovereign immunity in that case, her decision could apply to any lawsuit filed against the insurer since Hurricane Ike, which struck in September with 110 mph winds and devastating storm surge. The windstorm association isn’t seeking dismissal of the lawsuit or others like it, officials said.
Compensation In Excess
What the association’s attorneys at a Monday hearing asked Criss to do is exempt the insurer from compensation in excess of actual damages, including “exemplary, punitive, treble damages, penalties, interest, mental anguish damages, attorney’s fees or any consequential compensatory or actual damages other than policy benefits.” Essentially, the association wants to be exempt from being sued on claims it acted in bad faith. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, July 29, 2009
A total of seven new lawsuits against insurance companies regarding hurricane damage claims were filed in Jefferson County District Court during the week of July 20 through July 24.
The following complaints were filed relating to Hurricane Ike:
Richard Carter of Beaumont alleges K&D Insurance Agency denied his claim for damages on Sept. 12. Carter claims he paid a $446 premium to the agency for flood insurance he purchased from defendant and insurance agent Danny Wright, but did not discover his policy was canceled until after he filed his claim. Pat McGinnis of Beaumont will be representing him. Jefferson County District Court case number: E184-545. Read more . . .
State Farm Lloyds Seeks Homeowners Rate Increase in Texas
Insurance Journal, July 16, 2009
State Farm Lloyds has submitted a rate filing to the Texas Department of Insurance to increase its homeowner's insurance rates in Texas by a statewide average of 8.5 percent, beginning Oct. 1 for existing customers at renewal and Sept. 1 for new customers. Read more . . .
Allstate rates to rise for Texas homeowners
Consumer group decries increase in wake of Hurricane Ike as unnecessary.
Ameican-Statesman Staff, July 9, 2009
Insurance rates for 480,000 homeowners covered by Allstate Texas Lloyds will rise an average of 5.5 percent next month, but a state consumer advocate says the increase isn't justified. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - The Southeast Texas Record, July 9, 2009
A total of nine new lawsuits regarding hurricane damage claims were filed against insurance companies in Jefferson County District Court during the week of June 22 through June 26, 2009. Read more . . .
Winstorm group plans 10% insurance hike forecast along coast
By Purva Patel - Houston Chronicle, June 24, 2009
Premiums could jump 10 percent next year for thousands of coastal residents and businesses insured by the state windstorm association.
The Texas Windstorm Insurance Association’s board voted this week to seek state approval for a 10 percent rate increase that would go into effect in February, said Jim Oliver, the association’s executive director.
The windstorm association provides coverage to 228,000 homeowners and businesses in 14 coastal counties and a small portion of Harris County who can’t find it in the private market. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, June 25, 2009
A total of 11 new lawsuits regarding hurricane damage claims were filed against insurance companies in Jefferson County District Court during the week of June 15 through June 19.
The following complaints were filed regarding Hurricane Ike. Read more . . .
Coastal residents to bear brunt of Farmers increase
By Purva Patel - Houston Chronicle, June 18, 2009
Farmers Insurance customers living closer to the coast could see home insurance rates climb higher than the average 9.9 percent statewide hike the company notified regulators about this week.
Policyholders living in Houston and Dallas will see rates climb as high as an average 20 percent or as little as 1 percent, depending on where in each city they live.
The company did not say specify which parts of the city will receive the higher or lower hikes. In San Antionio, rate increases will range from 1 percent to 14 percent.
The latest rate increase was in the works before Hurricane Ike hit the Texas coast last year and is unrelated to claims from the hurricane, Levy said. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, June 18, 2009
A total of seven new lawsuits were filed against insurance companies in Jefferson County District Court during the week of June 8 through June 12.
The following complaints were filed regarding Hurricane Ike: Read more . . .
Farmers to raise homeowners rates nearly 10 percent
By Purva Patel - Houston Chronicle, June 16, 2009
Farmers Insurance is raising rates an average 9.9 percent for thousands of homeowners statewide. The company filed the rate hike, which is effective immediately as policies come up for renewal, Tuesday with state insurance regulators.
“The need for this rate increase is driven by an increase in reinsurance costs and increased claims costs,” said Michelle Levy, a Farmers spokeswoman. Reinsurance is coverage insurers buy to help pay for claims during a catastrophe. The rate increase was in the works before Hurricane Ike hit the Texas Coast last year, she said. Read more . . .
This Just In: Recent civil suits filed in Orange County District Courts
By David Yates - Southeast Texas Record, June 16, 2009
May 27
Kenneth Prosperie vs. Modern Construction et al
PA - John Werner, J - Pat Clark
The plaintiff hired the defendant in April to perform work on his Orange County home, paying the company $32,000 in advance. Allegedly, the defendant failed to pay its subcontractors and all work on the plaintiff's home has stopped.The plaintiff is suing for actual and and consequential damages, plus attorney's fees. A090303-c Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Journal, June 10, 2009
A total of 11 new lawsuits relating to hurricane damage claims were filed against insurance companies in Jefferson County District Court during the week of June 1 through June 5.
The following complaints were filed relating to Hurricane Ike: Read more . . .
Suit Accuses Insurance Company of Fraud
By Ned Hibberd - MyFoxHouston, June 9, 2009
GALVESTON, Texas - Four Galveston County residents have filed a lawsuit against the Texas Windstorm Insurance Association.
They claim the TWIA, which is the insurer of last resort for 14 coastal counties, committed fraud in the wake of Hurricane Ike.
Plaintiffs' attorney Tony Buzbee said the TWIA issued a memo two months after the storm, reversing its policy on roofs with non-visible damage.
"That basically said that unless there is visible damage-- that is, shingles missing-- they will not pay for the repair of the roof," he said. Read more . . .
Nationwide to drop Houston policies
By Purva Patel - Houston Chronicle, June 6, 2008
Nationwide Property and Casualty Insurance won’t renew 5,300 Houston-area home insurance policies starting Sept. 17, the company said Friday. The majority of those customers are in Harris County.
“Nationwide continually reviews its business strategy with the goals of maintaining long-term viability for its customers, and the potential for ongoing hurricane activity is there,” said Mike Switzer, a spokesman for the insurer. Fearing stronger and costlier storms, Nationwide Mutual Insurance Co. in May 2007 dropped windstorm coverage for about 1,000 policyholders. About 600 of those policies were in Galveston County. Read more . . .
Time to take on insurance lobby
By Heber Taylor - The Galveston Daily News, June 5, 2009
Don’t let the polite talk about “reasonable compromise” fool you. The legislation overhauling the Texas Windstorm Insurance Association was bad news for coastal residents.
The association is a pool that more and more coastal property owners find themselves in as insurance companies restrict the availability of regular commercial coverage.
There are many problems with the bill that passed.
• The bill makes it difficult for the public to play any kind of meaningful role in developing rates and rules. The new legislation seems to anticipate that the industry will make the calls — even about rules involving the amount of coverage available through the windstorm pool — and simply inform the public of its decisions.
• Coastal residents — the people served by this pool — are in the minority on the association’s nine-member board. Read more . . .
Windstorm reform greatest result of 81st session, local representatives say
By Heather Noan - Beaumont Enterprise - June 5, 2009
Southeast Texas representatives agree that hurricane-related bills were the most relevant local issues resulting from the 81st Legislative session, which ended last week. State Rep. Joe Deshotel, D-Beaumont, said the Texas Windstorm Insurance Association reform bill had the most impact on Southeast Texas.
The bill allows for assessments up to a maximum of 2.8 percent on windstorm insurance policies if a damaging hurricane strikes the Texas coast this year. That means for every $1,000 in premium costs, windstorm policyholders in the state's 14 counties would pay an extra $28 if a storm causing at least $600 million in damage occurs. Read more . . .
Hurricane relief? Maybe
By Jim Mitchell/Editorial Writer - Dallas Morning News, June 5, 2009
I've been really busy this week, so I'm just getting around to posting this update on the Texas Legislature's last-minute partial fix for the state's hurricane insurance dilemma.
This "fix" is important because the Texas Windstorm Insurance Association provides coverage to 229,000 homeowners and businesses in 14 coastal counties who can't find it on the private market.
Some key points:
- Insurance companies had their loss exposure capped at $800 million, which means a small- or mid-sized storm along the coast won't sock the insurance industry with unlimted sticker stock. And we know what happens when insurance cos. get surprised -- they cut back or raise premiums. Read more . . .
State Farms Reponds to Insurance Fight
By Jordan Williams - KRGV (News Channel 5- ABC, Weslaco), June 4, 2009
HARLINGEN - State Farm workers have released more details about a Harlingen woman's insurance fight. We recently reported on the the damage Hurricane Dolly did to Aleta Ainsworth's house. Workers are still making repairs. Ainsworth says State Farm dropped her homeowner's insurance policy with little warning. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Journal, June 3, 2009
A total of six suits over hurricane damage claims were filed against insurance companies in Jefferson County District Court during the week of May 25 through May 29.
The following suits were filed relating to Hurricane Ike: Read more . . .
Texas budget heads to governor's desk
By R. G. Ratcliffe - Houston Chronicle, May 30, 2009
AUSTIN — The Texas budget is on its way to the governor's desk. Windstorm insurance reform survived another day. Expanded health care coverage for low-income children still is in a death dive. At issue is how to keep solvent the Texas Windstorm Insurance Association, which provides insurance for homeowners who can't find private coverage — without pushing up insurance rates. Hurricanes Ike and Dolly busted TWIA with an unexpected $2 billion in payouts. Read more . . .
Windstorm reform on ‘last hope’
By John Tompkins - The Facts, May 29, 2009
A bill that would give the state’s windstorm insurance association options to replenish its funding pool might come down to a conference committee ironing out some compromises. The Texas Senate passed an amendment late Wednesday night to House Bill 4409 that would give the Texas Windstorm Insurance Association authority to issue post-event and pre-event bonds and purchasing reinsurance, among others funding possibilities, to meet obligations.
“If we don’t get a windstorm bill out of this session, then we’ll be back,” said Sen. Mike Jackson, R-Shoreacres, who put the measure into his disaster management bill. “This is kind of our last hope to be able to work on this issue and hopefully, hopefully, resolve it in the few days that we have left.” Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, May 28, 2009
A total of 11 suits relating to hurricane damage claims were filed against insurance companies in Jefferson County District Court during the week of May 18 through May 23. The following claims were filed regarding Hurricane Ike: Read more . . .
Windstorm bill blows away in House partisan fight
By Dan Wallach - Beaumont Enterprise, May 26, 2009
Partisan gridlock in the Texas Legislature has all but killed a bill intended to fix the agency that insures coastal residents against hurricanes. The deadline for voting on the bill passed at midnight Tuesday and as of press time it remained stalled behind a controversial voter identification measure. That likely would send lawmakers into an overtime special session to deal with the continuing financial problems of the Texas Windstorm Insurance Association. Read more . . .
Committee agrees on wind insurance
Bill going to House next week
By Enrique Rangel - Amarillo Globe-News, May 22, 2009
AUSTIN - Members of the House Insurance Committee on Wednesday night finally agreed on a compromise bill that the chamber is expected to take up next week. Gov. Rick Perry said he will call a special session of the Legislature on June 2 if windstorm insurance is not addressed. Read more . . .
House committee OKs windstorm insurance plan
By R.G. Ratcliffe - Houston Chronicle, May 20, 2009
AUSTIN — Windstorm insurance reform legislation suddenly got voted out of a House committee Wednesday after Gov. Rick Perry threatened to call a special session on June 2 if the bill does not pass. Read more . . .
Insurance reserves gone with the wind
State legislators seek ways to replenish funds
By Dan Kelley - Caller Times, May 10, 2009
When Hurricane Ike slammed into the Texas Coast last year, it cost the state’s windstorm insurance fund more than $2 billion. That’s $200 million more than the 38-year-old fund collected in all its years of existence. Lawmakers are considering those numbers as hurricane season approaches. Inland lawmakers and insurance authorities want coastal residents to pay a bigger share of the fund’s costs.
Lawmakers from coastal counties are fighting bills that have the potential to dramatically raise rates for insurance through the Texas Windstorm Insurance Association. If the rates rise as much as proposed, housing construction could slow and coastal property values could fall.
“Why should our area be punished when we haven’t had a hurricane since 1980?” said state Rep. Todd Hunter, R-Corpus Christi. “Just because we’re on the water? That doesn’t justify an onerous, punitive rate hike.” Read more . . .
Windstorm insurance issue affects state, not just coast
Editorial - Caller Times, May 7, 2009
Nothing is clear as the Legislature heads into its final stretch, but before a punitive windstorm insurance measure emerges at the end of the session, coastal residents and legislators need to stay on message: This is not just a coastal issue, as Rep. Todd Hunter, R-Corpus Christi, has said. It is a statewide issue. That message was reinforced Tuesday when 200 protesters rallied on the Capitol steps in Austin chanting, "Don't kill the Texas coast."
The protesters included a large contingent of public officials and others from Nueces County. Protesters said the proposed windstorm legislation puts most of the burden for hurricane costs solely on the coast. They warned that punitive windstorm insurance legislation would destroy economic development on the coast. Read more . . .
Latest hurricane-related insurance suits filed in Jefferson County
By Kelly Holleran - May 6, 2009
A total of nine lawsuits relating to payment of hurricane-related damage claims were filed against insurance companies in Jefferson County District Court the week of April 27-May 1, 2009.
The following suits regarding Hurricane Ike were filed: Read more . . .
Windstorm watchdogs hope to alter bill in House
By T.J. Aulds - Galveston Daily News, May 3, 2009
The state senate bill overhauling the Texas Windstorm Insurance Association wasn’t as bad as it could have been for coastal residents. It wasn’t as good as it could have been either, the president of the Galveston Windstorm Action Committee said.
“My first thought is that we really need to praise our senators, Mike Jackson and (Joan) Huffman,” Lee Otis Zapp Jr. said. “They had been working for over a week to strip a lot of the punitive provisions out of the bill.” Even with some of the provisions removed, Huffman, R-Houston, whose district includes Bolivar Peninsula and almost all of Galveston Island, voted against the bill, which passed overwhelmingly Thursday. Jackson, Galveston County’s other state senator, voted for it. Huffman said she voted against the bill because the rate hikes would come too quickly.
“We had wanted seven years (for the rate increases to be phased in), but the compromise was for five years,” Huffman said. “But that didn’t make it into the final version of the bill. It was three years instead, and I just thought that was too much of a burden on my constituents. I know it’s going to be tough on those people.” Read more . . .
Senate OKs windstorm insurance plan
By W. Gardner Selby - Austin American Statesman, May 1, 2009
Coastal residents would likely face windstorm insurance rate increases of 5 percent a year for the next three years under an insurance rescue plan approved by the Texas Senate this afternoon. But if a hefty hurricane hits Texas, property-owners from border to border could be required to help pay off bonds issued after the storm. Estimated charges after an event like last year’s Hurricane Ike would run from $85 a year for 10 years along the coast to $2 a year for 10 years in inland regions including Travis County. The estimated 5-percent-a-year increases for property-owners along the coast would be needed to fulfill the revised plan’s demand that the state’s windstorm system become actuarially sound in the three years, sponsoring Sen. Troy Fraser said. Read more . . .
Explosion of Ike Lawsuit Expected As Insurance Companies Back Out of Agreements
By Bryan Rupp - News KBMT, April 25, 2009
Arguments over Hurricane Ike damage are making a lot of Southeast Texans storm weary. KBMT 12 News ABC/NBC Brian Burns talks to one victim of the storm who's getting ready to sue their insurance company. Read more . . .
Senate passes Department of Insurance Sunset Bill
By The Rockport Pilot (Rockport, Texas), April 24, 2009
The Texas Senate passed Senate Bill 1007 - the Texas Department of Insurance Sunset bill - which provides new consumer safeguards and significantly strengthens the Department of Insurance’s ability to protect Texans from unscrupulous insurance carriers, said State Sen. Glenn Hegar.
The bill, which passed by a margin of 18-12, was the result of an almost two-year intense review of the state’s Department of Insurance by the Sunset Advisory Commission. The bill also increases protection for Texas homeowners and Texans receiving their health insurance through Preferred Provider Organizations (PPOs). Hegar serves as the Commission’s vice chairman.
“Senate Bill 1007 is good public policy that protects Texans and demands insurer accountability,” Hegar said. “The Texas Senate had no choice but to pass this important bill - not doing so would have been bad for Texas consumers. I am sorry some of my colleagues were willing to let insurance companies continue doing business as usual for another two years,” he added. Read more . . .
Churches suing state windstorm insurance pool
By Laura Elder- The Galveston Daily News, April 23, 2009
GALVESTON — Seven island churches have filed separate lawsuits accusing the Texas Windstorm Insurance Association of shortchanging them on Hurricane Ike claims. Jerusalem Baptist Church, Live Oak Missionary, Macedonia Missionary, Mt. Calvary, Progressive Missionary, St. John Missionary and St. Luke Missionary filed the lawsuits last week in Judge Susan Criss’ 212th State District Court.
Chief among the lawsuits’ complaints is that the windstorm association, insurer of last resort to 230,000 coastal property owners, has refused to pay the full amount of claims the churches say they’re owed. Read more . . .
Reform of the Texas Windstorm Insurance Association not Weathering
By Paula Smith - InHouston, April 22, 2009
With the Texas Legislator (sic) in session and the aftermath of Hurricane Ike first and foremost on our minds, of course we expected to see reform legislation introduced. Outcries from inland Texans who feel subsidizing insurance for coastal properties aren’t the job or responsibility of residence of, say, Amarillo sparked the debate over house bill 911.
Coastal Texas supports our petrochemical industry, tourism and second homes in local communities and not least the international trade through our harbors.
The Texas Windstorm Insurance Association is intended to be the insurance of last resort. As companies no longer choose to write windstorm coverage in Corpus Christi, Galveston, Rockport and other coastal communities, it has become the insurance of only resort. Read more . . .
Legislature slow to deal with Ike-induced insurance problems
Senator says inaction could be costly.
By W. Gardner Selby - American-Statesman, April 22, 2009
When two hurricanes slapped Texas last year, they took more than lives and property. Hurricanes Dolly and Ike blew away the state's windstorm insurance fund, leaving a multimillion-dollar hole that lawmakers have yet to tackle with less than six weeks left in the 2009 regular session.
A key lawmaker fears legislators could fail to retool the Texas Windstorm Insurance Association for the third straight regular session. Read more . . .
Texas Senate Approves Insurance Department 'Sunset' Bill
Insurance Journal, April 21, 2009
The Texas Senate has approved a measure that allows the continued operation of the Texas Department of Insurance, but would slightly reform its operations, according to a Senate new release.
The bill's author Senator Glenn Hegar of Katy, said the legislation better defines the file-and-use system of setting insurance rates "with stronger prior approval protections as a back drop, to bring greater stability and consistent regulation in Texas." Read more . . .
Texas Senate missed chance to reduce homeowner insurance rates
Editorial - Beaumont Enterprise, April 21, 2009 The Texas Senate missed an opportunity this week to do something about soaring homeowner insurance rates that are hurting so many Texans. It voted to renew the state Department of Insurance and a flawed system that allows companies to raise homeowner rates and start collecting premiums before regulators get a chance to review them. Read more . . .
Texas Senate rejects tightening insurance regulations By Terrence Stutz - The Dallas Morning News, April 21, 2009
AUSTIN – In a major win for insurance companies, the Senate – voting along party lines – Monday rejected a Democratic-backed proposal that would have required home insurers to get prior approval from the state before raising rates. Senate Republicans also beat back several other Democratic attempts to tighten regulation of insurance companies, including a proposal that would have required health insurers for the first time to file rate increases with the Texas Department of Insurance.
Sen. Juan Hinojosa, D-McAllen, led the effort calling for prior state approval of all home insurance rate increases, arguing that Texas homeowners are paying the highest rates in the nation because state regulators don't have enough authority over companies.
"We need to protect Texas homeowners, who are being fleeced by their insurance companies," said Hinojosa, who noted that the average $1,409 a year that Texans pay for homeowners coverage is about $600 more than the national average. His amendment, backed by consumer groups but vigorously opposed by the insurance industry, would have required all home insurers to get approval from the state insurance commissioner before increasing rates. Read more . . .
Legislature is not 'Ropin' the Wind' of storm insurance
By Dan Wallach - Beaumont Enterprise, April 18, 2009
An ill wind could be blowing toward the Texas Gulf Coast from the Hill Country. It's not cedar pollen, or eau de feedlot. It could be a state law that fixes what coastal residents pay for windstorm insurance - if we can get any.
It's not an organized storm yet by any means. Lawmakers are blowing in a variety of directions about how to pay claims to people through the Texas Windstorm Insurance Association. Some pretty awful gusts have blown through already. Read more . . .
New suits against insurance companies over hurricane claims filed in Jefferson County
By Kelly Holleran - Southeast Texas Record, April 16, 2009 A total of six suits regarding hurricane damage claims were filed against insurance companies in Jefferson County District Court during the week of April 6 through April 10.
The following claims relating to Hurricane Ike damage were filed. Read more . . .
Coastal home insurance fund needs patching
By Purva Patel and Janet Elliot - Houston Chronicle, April 13, 2009
As hurricane season approaches, Texas lawmakers are trying to figure out how to shore up the state’s windstorm insurer of last resort, and if one state senator has his way, that could mean more expensive policies for coastal property owners. Read more . . .
‘Backstop’ idea appears too risky
Catastrophe fund may have opposite effect By Eli Lehrer - Houston Chronicle, April 12, 2009
Texans have many reasons to worry about hurricanes. Two large storms struck the state last year, insurance rates have risen steadily in most coastal areas, the state-mandated wind insurance mechanism faces severe problems, and residents have seen an ever increasing percentage of their income going to pay for property insurance.
The call for elected representatives to “do something” is understandable.
Recently, members of the Legislature led by Rep. Craig Eiland (D-Galveston) introduced a proposal that would set up a state “backstop” — a fund that insurance companies themselves could draw on to pay claims following a major catastrophe. It may sound good, but it won’t work. In fact, it’s likely to raise insurance rates, undermine a vital private industry, and, possibly, get the state into financial trouble. Read more . . .
New suits against insurance companies over hurricane claims filed in Jefferson County
By Kelly Holleran - Southeast Teas Record, April 9, 2009
A total of seven suits against insurance companies regarding hurricane damage claims were filed in Jefferson County District Court during the week of March 30 - April 3, 2009. The following suits regarding Hurricane Ike were filed. Read more . . .
State Rep. Craig Eiland's A True Ike Victim
He's Suing The State's Insurance Group
By Amina Rivera - Houston Press, April 8, 2009 The Texas Windstorm Insurance Association (TWIA), a last-resort insurer, is dragging its feet on claims filed after Hurricane Ike, and Democratic State Rep. Craig Eiland isn't having it. According to the Galveston County Daily News, last week Eiland filed suit against TWIA, as have 50 other coastal business owners, for its disproportionate compensation.
Eiland told Hair Balls, "They paid 60 percent, and I believe they should pay 100 percent." He's been paid $60,000, or the equivalent of three months of business interruption, even though the office he leases for his Galveston law firm has been under construction for eight months. Read more . . .
Lawmakers debate windstorm insurance By Kelley Shannon - Associated Press/Houston Chronicle, April 7, 2009
AUSTIN, Texas — Texas legislators jumped into debate Tuesday over how to improve the troubled windstorm insurance system that serves as a last resort for hurricane protection along much of the Gulf Coast. Revamping the windstorm fund has been on the minds of legislators since private companies began pulling away from offering property policies on the Texas coast after hurricanes Katrina and Rita in 2005. The state-chartered fund — replenished in large part by payments from private insurers — has become the only windstorm insurer for homes and businesses in 14 counties.
Rep. Todd Hunter, a Corpus Christi Republican, laid out proposals on assorted ways to potentially fund the windstorm insurance system. Among the ideas are general state revenue, federal economic stimulus money, the state's Rainy Day Fund or assessments and fees on insurers or policy holders. "To me, it's a statewide issue," he said, emphasizing his view that operation of the windstorm insurance association is not just a coastal concern. Read more . . .
Hearings will be held today on punitive windstorm bills
Editorial - The Caller (Corpus Christi, Texas), April 7, 2009
Today's scheduled hearing of the House Insurance Committee could be a crucial one for Corpus Christi and other interests along the Gulf coast. Again, the question of how to fund the windstorm insurance pool will be considered. Thus far this legislative session, coastal residents have been on the defensive against bills that would impose unfair, unreasonable and ultimately unbearable financial burdens. Those bills are the work of Rep. John Smithee, R-Amarillo, chairman of the House Insurance Committee, and Sen. Troy Fraser, chairman of the Business and Commerce Committee.
Both bills have a common, misguided principle -- that insurance protection against hurricanes is a problem only for the coast. Yet the state's entire economy would feel the effects of a big storm that renders the valuable tourism economy and the petrochemical complex along the coast inoperable.
That means that any solution to the windstorm insurance issue starts with spreading the insurance risk, finding a way to refund the pool's catastrophe fund that doesn't put an unreasonable burden on the coast and that finds a way for private insurers to enter the coastal market. The first step toward finding a workable, reasonable, long-term solution should begin with today's hearing. Read more . . .
Bills aim to change state windstorm pool funding
By Laura Elder - The Galveston Daily News, April 7, 2009 If one inland lawmaker gets his way, thousands of windstorm insurance policies would come with the warning: “You may be paid less than the full amount of damages that you suffer.” HB 4733, filed by state Rep. John Smithee, R-Amarillo, is one of several up for public hearing today that would change the rules governing the Texas Windstorm Insurance Association, insurer of last resort for nearly 230,000 Texans.
HB 4733 would reduce the financial responsibility of those insurers and, for the first time, remove any guarantee by the state that policyholders would be able to collect for damage if the association’s funding were depleted. Removing the guarantee of payment would have a chilling effect on real estate and mortgage lending in coastal markets, said Lee Otis Zapp Jr., president of the advocacy group Galveston Windstorm Action Committee. Read more . . .
Texas taxpayers, policyholders at risk with hurricane fund
Legislature takes on problem of insurance against hurricanes and must decide how much of the risk should rest on the entire state, not just on coastal residents and businesses.
EDITORIAL - Austin Statesman (Texas), April 06, 2009
Over the past few weeks, Texas coastal communities have been aroused to fury over proposed legislation that, they say, would make insurance against windstorm damage — hurricanes — unaffordable or even unavailable and thus ruin their local economies. People in the rest of the state should not dismiss this as just a coastal issue. Read more . . .
Insurance Woes Continue For Lawmakers
By Lauren Williamson - KRISTV-6 CBS (Corpus Christi, Texas), April 1, 2009
CORPUS CHRISTI - Local business and government leaders have just returned from Austin where they're fighting proposed legislation that would dramatically increase what residents now pay for windstorm insurance. Also, they're getting ready to go fight again.
Two weeks ago, the Chamber of Commerce asked residents to join them in fighting House Bill 911. The bill would raise insurance premiums and lower coverage for homeowners in 14 coastal counties. Read more . . .
Hearing under way to decide whether State Farm overcharged Texas customers
By Terrence Stutz - The Dallas Morning News, April 1, 2009
AUSTIN – State Farm customers will soon find out if they are due refunds of $250 or more to resolve allegations that they were overcharged by the state's largest insurer over the past several years. State Insurance Commissioner Mike Geeslin began listening to testimony Wednesday in one of the biggest insurance rate cases ever in Texas. State Farm disputed claims by state regulators that it charged excessive rates on homeowners policies beginning in 2003.
But lawyers for the Texas Department of Insurance and Office of Public Insurance Counsel said State Farm has overcharged its million-plus Texas policyholders by at least $250 million and as much as $500 million, and should be ordered to issue refunds to its customers. "Now is the time for State Farm to be the good neighbor it represents itself to be and refund the hundreds of millions of dollars it has overcharged it customers in Texas," said Public Insurance Counsel Deeia Beck. Read more . . .
Windstorm plan boosts costs for residents, firms
Many local leaders speak out against bill during hearing
By Jaime Powell - April 1, 2009
AUSTIN — Reforming the state-run Texas Windstorm Insurance Association would mean a hefty price tag and new mandates for both coastal property owners and the insurance industry under the terms of a bill pending in the Senate Business and Commerce Committee.
Senate Bill 14 isn’t the absolute answer to replenishing the fund depleted by Hurricane Ike claims last year, its author Sen. Troy Fraser said, but it’s the start of a necessary discussion to avoid the next major hurricane bankrupting the state. Read more . . .
Insurers fight efforts to curb financial abuses
By Jay Root Associated Press/Houston Chronicle, April 1, 2009
AUSTIN, Texas — State lawmakers are trying to rein in the often eye-popping commissions paid to insurance agents who sell questionable or downright bogus financial products to elderly Texans. But officials say the industry, including representatives of the maligned insurance giant American International Group, Inc., is fighting hard against increased regulation. In some cases, commissions worth tens of thousands of dollars are being paid out to agents who sell annuities that often bilk senior citizens out of much of their retirement nest eggs, officials say.
Sen. Rodney Ellis, D-Houston, said he found it "disheartening" that representatives of AIG-affiliated companies are members of the industry associations that are trying to kill his proposal for more oversight over the commissions people pay for annuities. "That struck me — that they would be bold enough to come here to argue against any kind of checks and balances on abusive compensation," Ellis said. "They are the godfather of unjust compensation entities in America." AIG has been at the center of criticism over bonuses paid to companies getting federal bailout money. Read more . . .
Insurer slows John Ford Jewelers’ return
By Laura Elder - The Galveston Daily News, March 30, 2009
Diamond in the rough: It’s a story to which many a hurricane-hit business can relate. The island’s John Ford Jewelers hopes to return in May but still is working to collect money from his out-of-state insurer. Read more . . .
Texas Supreme Court Rules for Policyholders in Major Corporate Insurance Lawsuit
Fox Business, March 30, 3009
In a major victory for insurance policyholders, Texas Supreme Court justices have made it more difficult for insurers to deny coverage to corporate customers who fail to timely report claims, as long as the delay does not prejudice the insurer. The decision came March 27 in Prodigy v. Great American, which involved a "claims-made" Great American Insurance Company insurance policy held by Prodigy, an AT&T, Inc. subsidiary.
Since most corporate policies covering liability for directors and officers (D&O) and for errors and omissions (E&O) are "claims-made," the outcome of this case will have substantial implications beyond Texas borders. Read more . . .
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Smithee: Rainy day fund won’t be source to restore windstorm insurance fund
By W. Gardner Selby - March 30, 2009
Rep. John Smithee has backed off his recent proposal to let a state insurance fund borrow up to $1.5 billion from the state’s rainy day fund in the event of a hurricane-like disaster. Smithee, R-Amarillo, chairman of the House Committee on Insurance, said today he shifted from his initial proposal—blogged about here—in recognition that Lt. Gov. David Dewhurst isn’t supportive of schemes to tap the rainy day fund for such a purpose.
He said he’s eager to hear alternative methods of shoring up the fund. “No one has been able to give me an answer on that,” Smithee said. Coastal residents, he said, “want home insurance and they want it real cheap. But no one has any idea how to come up with the money.” Read more . . .
In windstorm fight, it's them versus us
By Dan Wallach - Beaumont Enterprise, March, 29, 2009
On the Great Seal of the United States is the motto, "E Pluribus Unum," which is Latin for "Out of many, one." It's a nice idea, but it seems to have been lost on a state representative from Amarillo who apparently prefers to think in terms of "us versus them." The "us" in Rep. John Smithee's point of view is all of Texas that isn't the Gulf Coast. We're his "them."
Most worrisome is the slashing of coverage for business property. Without adequate insurance, there is no borrowing for things like expansion, jobs, the future. Read more . . .
Fraser foresees coastal homeowners paying 20 percent insurance surcharges or more
By W. Gardner Selby - The Austin American-Statesman , March 31, 2009
Sen. Troy Fraser this morning gave Senate colleagues their first look at his revised legislation to shore up the state's catastrophe fund against windstorm disasters.
Under Fraser's rewrite, insurance companies with customers in 14 coastal counties and part of Harris County would pay $400 million toward rebuilding the Texas Windstorm Insurance Association fund with another $500 million coming from a state revenue source to be named later in this legislative session by Republican legislative leaders or even Gov. Rick Perry.
That's not all the pitching in that Fraser envisions. For instance, 40 percent premium surcharges would be levied in the future on individuals purchasing newly built homes in coastal counties if the homes are not their homesteads/primary homes. Read more . . .
Local officials don't like insurance bill
By John Tompkins - The Facts, March 29, 2009
Legislators from Gulf Coast communities really don't like HB 911, which would require a homestead status in order to obtain a Texas Windstorm Insurance Association policy.
"It's pure evil," said state Rep. Dennis Bonnen, R-Angleton. "It is one of the most devastating bills that has ever been filed relating to the Texas Gulf Coast."
The bill, authored by state Rep. John Smithee, R-Amarillo, also would raise premium costs 75 percent, lower the coverage cap on residential property from about $1.7 million to $250,000 and lower commercial coverage for property and contents to $1 million from $4.2 million. Read more . . .
Ike's subtle damage persists in minds, bodies
By Laura Elder - The Daily News, March 29, 2009
Some of Hurricane Ike's least obvious but most serious and persistent damage is showing up every day at doctors' offices all over the county. Anxiety, depression, hypertension, fatigue, gastrointestinal distress, insomnia, irritability, muscle tension, uncontrolled diabetes and spiking cholesterol levels are nearly epidemic as residents deal daily with contractors, insurers, mortgage companies and shattered routines six months after the storm wiped out their houses, jobs or both. Read more . . .
Texas has 'critical' economic interest in ensuring Gulf Coast has insurance
By Dan Wallach - Beaumont Enterprise (Texas) March, 27, 2009
The coastal counties of Texas are "a critical component" of the state's economy, which means its insurability is essential to the whole state, an economic report asserts. That means a bill filed by the chairman of the House Insurance Committee that aims to reduce coverage and increase premiums for property owners along the 14 coastal counties could cause an economic storm in his home area in the Panhandle.
The report from The Perryman Group, dated December 2006, calculates that the "Tier 1 windstorm area," meaning the 14 coastal counties including Jefferson County, makes up at least 30 percent of the state's overall business activity. Read more . . .
Revised windstorm insurance legislation out Tuesday, says bill author
By Steve Taylor - Rio Grande Guardian, March 27, 2009
AUSTIN, March 27 - The chair of the House Committee on Insurance says he will have a committee substitute to his controversial windstorm insurance bill available for the public to see next Tuesday.
As filed, HB 911 instructs the Texas Windstorm Insurance Association to change the way it assesses rates. In future it would be based on geography. And so coastal communities could see a 60 percent hike while property owners living further inland would see smaller increases, if any. "Just imagine a 60 percent increase on what you pay now. It'sgoing to have a huge economic impact and obviously a pocket book impactfor many homeowners and business owners," state Rep. Solomon Ortiz,D-Corpus Christi, told the Guardian last week.
Read more . . .
Independent Insurance Agents of Texas Discuss Challenges with Windstorm Funding
Business Newswire, March 26, 2009
Since funding for the Texas Windstorm Insurance Association (TWIA) has become a top priority for the Texas Legislature, statewide lawmakers have debated several solutions that will impact policyholders in Texas, according to the Independent Insurance Agents of Texas (IIAT).
“We’ve seen what happens when a large storm hits our coast,” said David VanDelinder, IIAT executive director. “If we don’t put adequate funding in place for the 2009 season, we could wreck our insurance markets and the state budget with one more Hurricane Ike.”
Read more . . .
State Rep. Ortiz calls for windstorm bill of rights
By David Yates - southeast Texas Record, March 25, 2009
Over the last few years, the Texas coast has been battered by several costly hurricanes, leading to a windstorm insurer exodus and an onslaught of hurricane-related lawsuits. In a move to alleviate the "windstorm insurance crisis," State Rep. Solomon Ortiz Jr. of Corpus Christi filed two bills Friday, March 20, hoping his proposed "windstorm bill of rights" will help coastal homeowners with the rising cost and complexity of windstorm insurance. Read more . . .
House bill blows away windstorm insurance coverage along Texas coast
By Dan Wallach - Beaumont Enterprise, March 25, 2009
Texas coastal residents could pay more for windstorm insurance coverage because of a bill in the state House, but how much more isn't yet known, the bill's sponsor said.
At stake, however, is the financial stability of the Texas Windstorm Insurance Association, the state-backed insurance pool, also known as the insurer of last resort. Read more . . .
Catastrophe plan
Hurricane Ike reminds us of the need for planning. Texas CAT fund would help do so.
Houston Chronicle, March 25, 2009
In its messy wake, Hurricane Ike left us a clear message: Category 3 or stronger storm winds will come this way again, perhaps soon. Prepare well for them and do so without delay. Read more . . .
A bill to destroy life on the coast
By Michael A. Smith - Galveston Daily News, March 24, 2009
House Bill 911, which would dramatically change what the Texas Windstorm Insurance Association is able to cover and how much the coverage would cost consumers, is aptly named, as it constitutes an emergency for people living, and trying to make a living, along the coast. That would be a near-fatal blow to the real-estate industry all along the coast. If you can't insure a house, you can't get a mortgage, so the bill, among other things, would make it practically impossible to sell to anyone who didn't plan to live there full time or rent the place out. Read more . . .
Dolly, Ike ended feast years for insurers
By Laura Elder - Galveston Daily News, March 24, 2009
Bruised last year by major hurricanes and spring hail storms, companies underwriting homeowners insurance in Texas paid out more in claims than they earned in premiums, breaking a five-year profitability streak and setting the stage for possible rate hikes, officials said.
A look at preliminary insurance loss data released Monday by the Texas Department of Insurance shows insurers collectively earned about $5.2 billion in premiums against $6.6 billion in claims, largely because of hurricanes Ike and Dolly, which slammed the coast last year. But consumer groups called the data incomplete and inflated because they include claims filed, but not necessarily paid. Arguments between insurers and policyholders over claims have become a big issue and inspired numerous lawsuits since Hurricane Ike. Read more . . .
Texas insurers report big losses for '08 due to hurricane claims
By Terrence Stutz - The Dallas Morning News, March 24, 2009
Texas insurers, slammed by one of the most destructive hurricanes in state history, recorded massive losses last year, ending five straight years of hefty profits.
New financial reports released by the state Department of Insurance on Monday indicated that most companies took a big hit in 2008 primarily because of Hurricane Ike, which blasted Galveston and the Houston area in September. Read more . . .
'Punish the coast' windstorm legislation looks to be dead
Editorial - Caller Times (Corpus Christi, Texas), March 22, 2009
The initial attempts to write windstorm insurance legislation in Austin haven't been encouraging. The bill which emerged last week, but which now seems all but dead, indicates that too many legislators still don't understand the vital contributions made by coastal Texas to the state's economy. Read more . . .
Send In the Voters
Editorial by Bob Moser - The Texas Observer, March 20, 2009
You know that a problem has spun pretty thoroughly out of control when you find yourself thinking, "Hey, maybe a Texas election can fix it!
That's the conclusion that many folks-Democrats and Republicans alike-have reached when it comes to bringing down the state's gravity-defying insurance rates. Texans pay the highest home-insurance premiums in the country-almost twice the national average. Even after the much-ballyhooed "regulation" in 2003, prompted by rate hikes so extreme that even Gov. Rick Perry was forced to feign outrage, the Good Hands people of Texas have hauled in well in excess of $11 billion more than they've paid out in claims. Read more . . .
Perils of separate hurricane policies
By Michael A. Smith - The Galveston Daily News (Texas), March 19, 2009
U.S. Rep. Gene Taylor's proposed Multiple Peril Insurance Act may not be the best way to untangle the knot of problems caused by the way we insure against catastrophe, but it's worth a hard look, and at first glance appears better than the present situation. Taylor, a Mississippi Democrat, proposes rolling windstorm coverage into the National Flood Insurance Program to create a hurricane insurance policy. The logical foundation of that idea is solid. Hurricanes cause damage with wind and water. From a property owner's point of view, it matters little which caused what share of damage.
Now, however, it matters a lot whether wind or water caused the damage. Property owners wanting flood insurance must buy polices through the federal program. Texas' coastal residents wanting windstorm coverage have to buy policies through the Texas Windstorm Insurance Association. Ordinary homeowner coverage for contents comes through a third policy. Read more . . .
Bill strips vacation homes of windstorm insurance
By Laura Elder - Galveston Daily News, March 19, 2009
A bill up for hearing in the Texas Legislature would make thousands of vacation houses ineligible for windstorm insurance coverage, sharply limit the coverage available on all property and increase premium prices, opponents say.
HB 911, filed this week by state Rep. John Smithee, R-Amarillo, who chairs the House Insurance Committee, would allow only primary residences to be covered through the Texas Windstorm Insurance Association. State Rep. Larry Taylor, R-Friendswood, and state Rep. Craig Eiland, D-Galveston, say they intend to fight the bill. Taylor is a member of the insurance committee.
"The bill as filed is unacceptable for our coastal citizens," Taylor said. "Eiland and I are working with other coastal representatives to make sure the final version of this bill will support the continued economic vitality of our area." Read more . . .
Congressman proposes hurricane policy
By Laura Elder - The Galveston Daily News (Texas), March 18, 2009
As thousands of Texans battle with insurers about whether wind or water from Hurricane Ike damaged their homes and businesses, a federal lawmaker is pushing a bill that would roll both perils into one policy. U.S. Rep. Gene Taylor, R-Miss., who lost his home to Hurricane Katrina in 2005 and joined hundreds of others in a lawsuit against his insurer for refusing to pay for property damage, has introduced legislation that would make windstorm coverage part of the National Flood Insurance Program. The bill would create what amounts to a single hurricane policy, render moot whether flood or wind caused damaged and decrease both the likelihood of post-disaster litigation and the need for massive federal disaster aid programs, Taylor said. Read more . . .
Windstorm bill threatens region
Proposal could raise insurance price by 60%
By Jaime Powell - Caller Times (Corpus Christi, Texas) March 18, 2009
Texas coastal property owners beware.If a bill filed by the chairman of the House Committee on Insurance gets through the Legislature, the price of windstorm insurance - required of all coastal property owners - would soar by as much as 60 percent, it wouldn't cover nearly as much and for certain properties, it would not be available at all.
"This thing is an absolute economic death sentence, a disaster," said Nueces County Judge Loyd Neal, who intends to join Coastal Bend business and community leaders planning to attend a House Insurance Committee hearing in Austin on Tuesday, where the bill will be laid out for a first vote. Read more . . .
Schools, governments take a double financial hit
Economy, post-Ike insurance hikes forcing officials to do with less to pay for higher rates, they say
By Ericka Mellon - Houston Chronicle, March 15, 2009
The national economic storm and Hurricane Ike have delivered a one-two punch to Gulf Coast school districts and local governments.
The cost of insuring property has spiked since the storm, with premiums increasing by 10 percent to 40 percent and deductibles doubling in some cases.
To pay the bills, officials with Harris County, the city of Houston and several school districts say they plan to make do with less coverage or cut their budgets in other areas rather than turn to already-pinched taxpayers. Read more . . .
Hurricane Ike Aftermath: Unsettled and unhappy
6 Months later, many on Bolivar wait for windstorm cash
Watch video
By Purva Patel - Houston Chronicle, March 12, 2009
Hurricane Ike razed Joni Harding’s home and two rental properties six months ago today. Since then she’s been able to pool enough money from her three flood insurance policies and savings to rebuild her primary residence, but she is still waiting for a settlement offer from the Texas Windstorm Insurance Association on two of her properties, including her home. Read more . . .
Local judge says hurricane MDLs will save money, time for all parties
By David Yates - Southeast Texas Record, March 4, 2009
Consolidating the hundreds to possibly thousands of hurricane suits piling up in Jefferson County District Court into a multidistrict litigation (MDL) will save money and time for all parties involved, says one county judge.
In February, the four district judges presiding over the county's civil litigation formed a Hurricane Rita MDL in an effort to ensure consistent-blanketing rulings are made while each individual suit passes through discovery. Read more . . .
Texas lawmakers make proposals to stabilize insurance rates
By Terrence Stutz - The Dallas Morning News, March 4, 2009
Several lawmakers Tuesday pitched insurance proposals that they said would better protect consumers and help stabilize rates in the wake of a study affirming Texas' standing as the most expensive home insurance market in the nation. Read more . . .
Texans still pay highest insurance rates for homeowner policies
By Terrence Stutz - Dallas Morning News, March 3, 2009
Texas homeowners still have the dubious distinction of paying the highest insurance rates in the nation - despite measures designed to lower rates and much worse weather losses in other states. Read more . . .
TWIA policyholders to take anger to Austin
By Laura Elder - The Daily News (Galveston, TX), March 3, 2009
PORT BOLIVAR - At least 60 windstorm policyholders, angry about what they call slow service and unfair settlements, are headed to Austin next week to picket the headquarters of their insurer on the sixth-month anniversary of Hurricane Ike.
Members of the Yahoo Internet group BolivarBLUE are organizing the March 13 protest in front of the Texas Windstorm Insurance Association's headquarters. If the group follows through, it will be the first time in memory that fed-up policyholders picketed the state-created insurer of last resort, industry observers said. Read more . . .
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