Texas Windstorm Insurance Legislation Advances

The Texas Senate unanimously approved its version of a bill to revamp the state’s windstorm fund that insures coastal properties against hurricane damage.

The Texas Windstorm Insurance Association reform measure, House Bill 272, attempts to address the issue of “slab claims,” where after a storm only the foundation is left with little indication as to whether wind or water caused the damage.

Provisions include creating a panel to determine if claim damage was caused by wind or water. Some property owners would also be required to carry flood insurance equal to wind insurance.

Bill sponsor, Dallas Senator John Carona, said the bill is “a compromise and negotiated product,” representing agreed language between all stakeholders.

Because TWIA only offers windstorm coverage, Carona said, there were questions as to whether the organization overpaid claimants who lost property due to water damage.

The bill also reforms the claims process, by giving claimants up to one year to file. It sets up a process by which claimants can dispute damage appraisals.

For slab claims, policy holders can dispute settlements, but must first go through non-binding arbitration hearings. If claimants still aren’t satisfied, they can seek remedy through the courts.

This bill will now head back to the House, where it will choose to concur or not in the Senate changes to the bill.

The windstorm association is a quasi-government agency that is the primary property insurer for residents and businesses in 14 coastal counties.

Source: Texas Senate, Associated Press

Topics Catastrophe Natural Disasters Texas Legislation Windstorm