07 Aug More Bad News for HomeOwners
Here at Mendez Law Firm, we know that homeowners in coastal Texas are pretty aware of the type of damage Mother Nature can cause. It’s because of this reason that you buy all the insurances you need to protect yourself from any potential calamity.
Unfortunately, just as we’ve seen flood insurance premiums rise in recent months, windstorm insurance is experiencing the same trend. These increases are putting a hurt on Texans who are only looking to rightfully protect their homes and property.
Your Brownsville bad faith insurance lawyers at Mendez Law Firm have been keeping a keen eye on all these recent changes and we believe it is our duty to keep you aware of what is happening so you can prepare for the road ahead.
Business as Usual
On July 31st, the Texas Windstorm Insurance Association (TWIA) voted 5-4 in favor of raising premiums by 10 percent for next year. This result still came to pass in spite of the efforts made against it by many legislative representatives from areas that experienced heavy damage from Hurricane Harvey.
The increase will become official on January 1st of 2019 if the Texas Department of Insurance (TDI) approves the change. The increase would affect both new policies and those being renewed by owners. Sadly, there’s little hope for a rejection of rising premiums as this same situation played out last year.
On August 1st in 2017, the board of TWIA voted for a 5 percent increase on premiums. As residents across the state remember, this was a little over three weeks before Hurricane Harvey made landfall with gusts over 170 mph. In spite of the destruction that the storm caused, that rise in premiums still went into effect the first day of 2018.
What This Means for TWIA and Policyholders
TWIA has until the 15th of August to file the proposed premiums increase with TDI, as required by law. Before then – and during the approval/rejection process – there will likely continue to be negative blowback around the move.
Letters, like the one sent to TWIA which included remarks from state representatives arguing for premium increases to be shot down, may continue to come in. The mayors of Port Aransas and Corpus Christi have also spoken out against the approved increases with the support of legislators and judicial figures from across the coastal region.
Policyholders can take heart in these political stances and lend their efforts to the cause but can’t lose sight of the historical trends of TWIA. Their own site highlights the recent trend in increasing rates. From 2011-2018 alone, they have voted in favor of and seen an increase of over 40% in the premiums on their policies.
All these are geared toward the organization’s goal of policies being actuarially adequate. While that is a goal that is beneficial to TWIA, it is one that can only be achieved by rises in premiums rates.
Those of us living in coastal regions can’t afford to not keep up with insurance trends, particularly ones affecting windstorm policies. However, if those making the important decisions continue to regulate things the way they have been, we might not be able to afford our policies either.
At Mendez Law Firm, we know just how much there is for home and business owners to juggle. The last thing we have time for is to have to fight against bad faith insurance tactics when we deserve help.
If you have been dealing with your insurer acting in bad faith, denying your claim, or attempting to underpay you, contact us today at (956) 541-7600 and we’ll guide you in getting your affairs back in order when adversity strikes.