Proposed windstorm insurance changes worry Ritter, Deshotel
March 19th, 2009
KFDM-TV, Beaumont
Representatives Joe Deshotel and Allan Ritter today expressed their concerns with House Bill 911, and the negative impact it could have on the Texas Gulf Coast region.
“As written, this bill-from Brownsville to Beaumont-would be economically devastating to the entire coastal region, ” said Ritter.
Both lawmakers recognized the need to look at measures to reduce the total exposure for the Texas Windstorm Insurance Association (TWIA), the state’s insurer of last resort, while finding a way to keep rates manageable for all Texans.
“We must strike a balance between sharing risk and simply telling our coastal communities and economies there will be no access to insurance,” said Deshotel. Ritter and Deshotel said they will work with members of the Insurance committee to improve the legislation, which is set for a public hearing on Tuesday, March 24.
Potentially damaging measures included in the bill:
- Allowing TWIA to change and introduce new rates without prior approval.
- Allowing only primary residences or homesteads be eligible for coverage.
- Excluding condominiums, apartments, duplexes and other multi- family units from coverage.
- Lowering the cap on coverage of residential property from $1.705 million to $250,000.
- Lowering the cap on coverage of commercial property from $4.154 million to $1 million.
- Lowering the cap on coverage of government property from $4.154 million to $2.192 million.
- Delaying a policyholder from coverage for 60 days after their policy goes into effect.
- Sets rates based on geographic location, causing coastal dwellers to pay more than inland residents.
Allan Ritter, serving in his sixth term, is chairman of the Natural Resources Committee. Joe Deshotel is chairman of the House Committee on Business and Industry and also a member of the Insurance Committee.