Windstorm Insurance Prices to Go Up For Third Straight Year

| September 11, 2014 | 0 Comments

twia-logoFor the third year in a row, the Texas Insurance Association’s board voted to raise windstorm premiums by 5%. This increase is set to start in January for all new, and renewing policies.

An average policy is about $3000, meaning that every year you could see an increase of $150 weather a claim has been filed or not. If raising premiums were not enough, earlier this year Texas Department of Insurance ruled that they could put extra surcharges on home, boat, auto and motorcycle insurance policies held by coastal property owners and residents in the event of a hurricane striking the coastal bend. How much? The agency won’t tell you until you actually need to file a claim. If all of this sounds expensive, it’s because it is.

In response to this, State Representative Todd Hunter has said he is working on proposed legislation to add more transparency requirements to the Texas Department of Insurance. “You only ever hear of them when they want to raise your insurance policies,” said Rep. Hunter. “When have they ever helped you out?”

Rep. Hunter went on to say, “Two years ago I knew a family that was paying 6200 a year in insurance for a modest home 2400 feet from the water. A year later they are paying 10,500 for insurance. This year they got a bill for 15,000 dollars. No one else in the state is paying this. I am concerned with people on a fixed income who can’t afford the hikes.”

TWIA is governed by a 10-member board of directors that serve six year terms. TWIA was created by the Texas Legislature to provide windstorm and hail coverage to coastal residents who are unable to obtain insurance elsewhere.

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Category: State Rep. Todd Hunter, Texas Windstorm

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