Texas Coastal Lawmakers Urge No Increase In Windstorm Insurance Rates

| September 24, 2016 | 0 Comments

 

AUSTIN – Texas coastal lawmakers sent a letter Friday (September 23) to Insurance Commissioner David Mattax asking him to approve rates passed by the Texas Windstorm Insurance Association (TWIA) that do not increase costs for consumers for the first time in six years.

Some 22 legislators representing affected counties signed the letter offering their full support for TWIA’s recent decision to keep current rates for 2017 windstorm insurance policies.

“For the hardworking families residing in Tier One counties, the decision to keep rates unchanged for 2017 comes as a welcome reprieve following years of financially burdensome increases,” the letter states. “From 2011 to 2016, the Board voted to increase rates 5 percent each year, resulting in a total cumulative increase of 34 percent for both residential and commercial policies over a six-year period.”

The letter went on to laud the passage of Senate Bill 900 saying the “legislature took historic steps to strengthen the Texas Windstorm Insurance Association by creating a more reliable and predictable funding structure and guaranteeing the availability of resources to cover a 1 in 100 year storm. The bill also restructured the TWIA Board to ensure that important policy decisions were made as the result of true deliberation and better reflected the interests of all stakeholders in the state.

Legislators also noted that it was the goal of “every coastal member of the Texas Legislature to encourage more participation in the volunteer marketplace and see TWIA truly become the insurer of last resort.”

“However,” the letter concluded “this goal must be achieved in a way that is economically feasible for coastal residents and businesses.”

To view the complete letter click here.

Category: State Rep. J.M. Lozano, State Rep. Todd Hunter, Texas Windstorm, Texas Windstorm Insurance Association

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