Bay Area Houston

Homeowners in the Clear Lake area should take some time to read the article by the Houston Chronicle, “Home insurance costs are soaring. Here’s what to know about the Texas Fair Plan Association“. TFPA might be providing your insurance in the near future.

In 1971 Texas created the Texas Windstorm Insurance Association (TWIA). It was advertised as the insurance of last resort covering those in the coastal areas who could not find insurance from the private sector. In 1995 Texas created the Texas Fair Plan Association (TFPA). It was advertised as the insurance of last resort covering those in the under served areas who could not find insurance from the private sector. Sound familiar?

Up until 2003 TWIA was providing service to a small number of property owners. Now it isn’t the last resort. It’s almost the only resort. Private insurance companies have fled the coastal areas leaving most owners to seek coverage from TWIA. I have little knowledge of TWIA, except that they are a non-profit organization and sell policies just like the private sector. TWIA issues detailed yearly assessments of their policies and financial situation. They are transparent to the public. When they ask for a 10% increase in rates they can prove it with data, data that is publicly available.

When did you ever see your insurance company justify their 25% increase or the reason why they will not renew your policy? As with TWIA I know little about the Texas Fair Plan except that they are managed by TWIA and like TWIA they are the insurance of last resort. They are also transparent and a non-profit. I think homeowners in the Clear Lake area should read the articles about the TFPA because it may become the last resort. 5 of the 6 largest insurance companies in Texas that make up the Texans for Affordable Insurance Solutions (TCAIS) will no longer write policies in the Clear Lake area.

Maybe it is time for all insurance companies to leave the state and let the non-profits provide service.

The articles by Houston Chronicle reporter, Megan Kimble, concerning the rising cost of home insurance are lengthy yet highly informative reads. If you can access the articles, take some time to read them. Here are my thoughts on the article:

Elected officials are not immune from increases. Senator Tan Parker out of the Dallas area says he was dropped by his company and is now paying three times as much for his insurance. State Rep. John Smithee, an Amarillo Republican had his premiums raised by 40% last year. He authored the insurance bills of 2003. Our own State Representative had his roof replaced last month. I am sure he has felt the pinch.

Our elected officials are missing in action. Where are our State officials? Our Representative, Dennis Paul, sits on the Insurance Committee. Where has he been? In office for 10 years he has NEVER convened a town hall meeting to address the issues of the community. We are now in crisis mode and he has still refused to respond to his constituents except for form letter responses if even that. The same can be said about our State Senator Mayes Middleton. Both have been asked to address the community at our Jan 7th meeting.

Climate Change. For decades the industry and elected officials have denied climate change but are now claiming that is the main factor in the rising cost of insurance. So they did nothing over the last 20 years to minimize the risk due to climate change and are now passing the consequences on to us.

Rates vs Premiums. This wasn’t specifically discussed in the articles but realize rates and the cost to rebuild determines your premium. So when the Texas Department of Insurance says that rates only went up by 21% over the last few years that might be true but the cost to rebuild has skyrocketed as has your premiums. Case in point USAA based the cost to rebuild my home at $645,000 driving my premium up over $15,000. Your deductible is also based upon a percentage of the cost to rebuild.

The Texas Coalition for Affordable Insurance Solutions. They are quoted in the article. They are a lobbyist group funded by the top 6 insurance companies in Texas. Over the last 20 years they have done NOTHING to find solutions for affordability. I have written about them here. The same lobbyist quoted in the article was the same one leading the fight to reform insurance back in 2023.

Lowering the risk and damage. Other states have been proactive in addressing the issue by encouraging better storm resistant products for homes and roofs. They have created incentives for homeowners to use these products. Texas has done nothing over the last 20 years. Even our HOAs can refused the use of these products and the State will do nothing to stop them from enforcing it. There are hail resistant roofs available, even metal ones, and water cut off valves that could detect a leak and prevent damages to a home due to busted pipes. The industry along with our elected officials are finally discussing these possible solutions, 20 years too late. There have been fills filed to address this issue but the Republic Party in the Senate killed them.

Inflation. Yes some of the increases can be attributed to inflation but it is NOT responsible for a 50% increase or a 100% increase. This, along with climate change, are a great excuses to justify dropping your coverage or over charging. Inflation is now under 3%.

Surge Pricing. This wasn’t discussed in the articles but it is real. Why does a roof cost $30,000 when it usually would cost just $8,000? In 2008 after hurricane Ike bids for a new roof ranged from $10,000-$15,000. I had my roof replace two years later for $4800. This year after a hail storm bids were coming in at $23,000 for the cheapest roof. My roofer eventually quoted $24,000. This needs to be addressed.

I have secured the Webster Activity Center on Jan 7, 2025 for another community meeting to discuss and take action concerning the rising cost of home insurance in our area. We will focus on the upcoming legislative session and how we can take the opportunity to influence our elected officials. For those who are not aware this session begins Jan 14 and will continue til June 2. 

Our elected officials have been invited to attend and discuss what we can do. Please save the date, invite your neighbors, and I will see you after the holidays.

Spread the word

Thank you for staying engaged. As of today we have almost 700 individuals who have signed up for for our newsletter. I am now expanding this activity to statewide. Please spread the word and invite your friends to join this list at tinyurl.com/BayAreaHouston. Also you can post this information on your social media platforms including Facebook and Nextdoor. 

Thank you for your interest in this issue!

Video and Handouts from our 1st Community meeting

Here is a great summary video provided by Texas Watch. 3 minutes https://www.youtube.com/watch?v=LkdozpsekjI

Here is a video of the complete meeting. About 1.5 hours https://www.youtube.com/watch?v=AGOWuMEj5o8

Here is the presentation by Ware Wendall of Texas Watch, Property Insurance. Paying More for Less.  https://www.dropbox.com/scl/fi/id7g4tgq2m1ghdxgids7f/Property-Insurance_Paying-More-for-Less_Texas-Watch_Seabrook_June-2024.pdf?rlkey=mrl3p4vvggqa6w6vxvln07yh4&st=c0835w7x&dl=0

Here is my presentation, History of Insurance Reform. https://www.dropbox.com/scl/fi/y55gpoaj31srmzko5xwof/Insurance-presentation.pdf?rlkey=czkomo60pcwpj8euy0n9z26j5&st=cwsnje32&dl=0

If there is a guide on “How to lobby elected officials” I have not found it. So I will give you an idea of what we could do just based upon my experience as a consumer activist years ago. I don’t expect to know it all so if you have ideas, I am all ears.

1. Be focused. Stay on message. For the insurance issue the message should be very clear: We want our premiums to be lowered, our deductibles to return to a fixed amount not more than $1000, and we do NOT want a deduction in coverage.
2. Develop a relationship to your elected official or their staff. Call your elected official in Austin and ask for the staff member assigned to insurance issues. Ask for an email address. Then keep in touch. Make sure you send them any information you think is important to the issue. For our area contact Greg Bentch at greg.bentch@house.texas.gov with State Representative Dennis Paul and Matt Patterson at matt.patterson@senate.texas.gov with Senator Mayes Middleton’s office.
3. Contact the members of the specific committee that will hear the bill(s) you are concerned about. The insurance bills in the House will most probably be assigned to the State Affairs Committee. The Chair lives in the Corpus Christi area and has an interest in this issue. I have collected the contact information for the members. I have listed them below. Again, contact each one with your specific information. If you can, call and email them.
4. Visit your elected officials office. Make an appointment in the district. Talk with someone about your insurance issue. Dennis Paul’s office is at 17225 El Camino Real Blvd Suite 415 (281) 488-8900. Senator Middleton’s office is at 174 Calder Road Suite 900 League City, TX 77573 (281) 332-1000
5. Spend a day in Austin. What I have done in the past was to make appointments with the staff members of the elected officials on the committee. The State Affairs Committee has 13 members. If you spend 15 minutes with each you might talk to all of them in 1 full day. That is a tough day. When you visit make sure you have a written copy of what you intend to talk about. Keep it to the point. Make sure they hear and understand our message.
6. Attend a hearing. This will be covered in a later email.

So. You can start now. Here are some important contacts:

State Representative Dennis Paul
Insurance Committee
C/O Greg Bench
greg.bentch@house.texas.gov
(512) 463-0734 Austin phone
17225 El Camino Real Blvd Suite 415 
(281) 488-8900. 

Senator Mayes Middleton
Business and Commerce Committee
C/O Matt Patterson
(512) 463-0111 Austin Phone
174 Calder Road Suite 900 
League City, TX 77573 
(281) 332-1000

You can find the contact info for members of the State Affairs Committee here. They will be hearing the bills.

I am working on the Business and Commerce Committee.