Bay Area Houston

Go figure.

The Texas Windstorm Insurance Association is a not for profit insurance provider covering only the “Tier I” areas on the Texas coast. They used to be the insurer of last resort but is now the only resort for most home and business owners. Over the last year TWIA has followed a process and requested a 10% increase in their rates. The final approval was from the Texas Department of Insurance. They denied the increase leaving TWIA underfunded by 38% for homeowners and 45% for business owners. God help them if there is another major storm.

So while the TDI Commissioner and our State Senator Mayes Middleton runs a victory lap for stopping a modest 10% increase the private industry has raised premiums by 25%-50%. TDI has approved all of these increases. Those with private insurance are getting screwed and those with TWIA will get screwed if a storm hits the Texas coast.

None of this makes cents. Senator Middleton filed a bill to end TWIA and allowing the private insurers to return to the coast and raise premiums by 50% with no oversight by the TDI. Private insurance companies do NOT want to return to the coast. Middleton’s bill failed to attract a cosponsor and died before the ink was dried.

You can read the long winded 12 page details of why the modest 10% increase was denied on the TDI website. TWIA issued it’s own comment below:

This entry was posted on Wednesday, October 16th, 2024 at 6:59 am and is filed under Political. 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.