TWIA Board Approves Premium Rate Hike
The Texas Windstorm Insurance Association’s board of directors on Tuesday approved a 5 percent increase to all policyholders' premium rates that would take effect next year. But it delayed a decision on a proposal that would adjust premium rates based on the likelihood of severe storm damage in a particular area.
As the state-run insurer of last resort for Texas’ coastal residents, TWIA insures against catastrophic hurricane damage. But the organization went underwater after Hurricane Ike slammed into Texas in 2008. On top of the billions paid to fix the hurricane damage, TWIA spent millions of state dollars to ...
Comments (3)
Tim ThèRockstâr via Texas Tribune on Facebook
Total and utter BS. Insurance Companies have been rolling the dice for years and raping us. Then Black Mold shows up, they deny that, flooding, deny that, now wind. I remember when there was a simple deductable for even roof's now you have to pay a %. This is criminal.
gypsy314 ne
I say rates may go up but will they go down when we have time there is know storms and why don't they increase just the county's were the damage is not the whole state????
Sounds like someone is getting kick back!
Anyone but Obama the fraud and the liar democrats!
Clinton Richey
As a professional in the insurance industry I would like to clarify Texas Windstorm Insurance and how it's different than your typical Texas standard lines insurance carrier. I'm sure everyone would like to believe that TWIA has soring profits and stuck it to customers for years and years.
That is simply not the case and needs to be clarified. TWIA is a state run organization that doesn't answer to wall street like the big captive carriers. TWIA doesn't have a profit motive or pay out dividends to it's shareholders because it doen't have any profits or shareholders. TWIA doesn't have enough money in the coffers to pay out another big storm, either. It will be more borrowed money that covers the bills.
However, my disclaimer is that the standard lines companies saw the writing on the wall years ago about the eventual claims paid out for having windstorm included in their policies. So, they were able to protect their profits and still continue to provide home coverage for the Tier 1 counties excluding windstorm coverage. However, more storms and more claims the larger carriers are backing off the coastal counties all together.
In is in everyone's best interest to have standard line carriers sitting at the table paying or contributing their fair share. It's not all out of reason to see the rates differ based on where your home is located on the coast. Basically, that is what insurance is, "Risk". The insurance company takes on the risk based on the premium that is collected.
In any event, if things do not change or atleast all parties are represented at the table in a fair and equitable negociation, we all lose.
If you would like a "good faith" estimate on your Texas Windstorm Insurance my office would discuss your options with you. Please feel free to call (800)-776-0633 or look up http://texascoastalinsurance.com.