Leaders concerned about insurance rates

Port Isabel-South Padre PRESS

Coastal residents are gearing up for a storm, but this one isn’t coming from the gulf. It’s coming from Austin.

A plan has emerged from the Texas Department of Insurance that could cause higher windstorm insurance rates and surcharges on all property insurance. Known as the loss funding rule, the plan would replenish funds used to pay for damage caused by windstorms, including catastrophes like hurricanes.

The Texas Windstorm Insurance Association pays for wind damage in all 14 coastal counties. To get a loan or mortgage, residents in those counties are all but required to purchase a policy. Should a storm hit, policy holders are expected to foot the bill.

“The problem is, if a hurricane hits the coast of Texas and TWIA doesn’t have enough money to pay for the damage, the first thing that happens is a charge to TWI policy holders,” said Courtney Hayden, a city council member for South Padre Island.

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Permanent link to this article: https://www.portisabelsouthpadre.com/2012/07/12/leaders-concerned-about-insurance-rates/

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