Texas Insurance Commissioner Kent Sullivan has declined to approve a request by the Texas Windstorm Insurance Association to raise the maximum limits of liability on windstorm and hail policies.
TWIA in August filed a request to increase the limits for residential dwelling and individually owned townhouses and associated contents; contents of apartments, condominiums, or townhouses; commercial structures and associated contents; and governmental structures and associated contents.
The proposed changes would have raised limits on dwellings 0.9 percent from $1.77 million to $1.79 million; contents of apartments, condominiums, or townhouses 1.7 percent from $374,000 to $380,000; and commercial structures 1.1 percent from $4.42 to $4.47 million. The adjustments would have taken place on policies written or renewed on or after Jan. 1, 2018, and were based on the BOECKH Index as required by the state insurance code.
A hearing was held on the proposed change in maximum limits on Sept. 25; the order denying the change was issued on Oct. 16.
On Oct. 12, TWIA reported that its expected ultimate loss and loss adjustment expenses from Hurricane Harvey we be around $1.13 billion. At that time, TWIA had received 69,833 claims, including commercial, residential and manufactured housing. It had closed more than 50 percent of the claims received — 36,894 — and had paid approximately $460 million in claim payments, including closed and open claims, as of that date.
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