Texas Windstorm Insurance Association subject to examination
Lawmakers met in Austin, Texas, this week to discuss the issues that are plaguing the Texas Windstorm Insurance Association. The state-run insurance provider has long been the best location for consumers to find affordable and comprehensive wind insurance policies. Coverage for wind damage is often not included in homeowner’s insurance policies in Texas, leaving many consumers without protection in the event of a powerful wind storm. Insurance Commissioner Eleanor Kitzman was present during the meeting to provide insight on the problems facing the Texas Windstorm Insurance Association.
Committee aims to bring reform to ailing insurance program
The meeting represented the first time a committee tasked to reform the Texas Windstorm Insurance Association convened. Commissioner Kitzman asked the committee exactly what changes it wanted to see come to the insurance provider and how the state-run company would receive funding. The issue of funding has been problematic since the insurance provider was founded by the state. Traditionally, the program provides access to affordable coverage, the premiums of which do little to offset the expenses the company sees.
Lawmakers look to mitigate risk exposure
According to the committee, the Texas Windstorm Insurance Association currently accounts for more than $76 billion in exposure to insured losses. The vast majority of this exposure is associated with structures that are worth less than $250,000. The committee is keen to find a solution that would mitigate the insurer’s exposure to risk. Depopulation of the program seems to be among the most popular options, apart from raising coverage premiums.
Kitzman to work to ensure consumers who need coverage are not left out
Commissioner Kitzman is keen to ensure that the insurance program continues to offer affordable coverage to the consumers that need it. According to the Insurance Commissioner, the majority of the consumers receiving coverage from the program turned to it as a last resort. Kitzman wants to show the committee responsible for reforming the program that not all consumers are financially well off and rely on the program for coverage for a second home.