Homeowners insurance organization may soon overcome challenges
The Texas Windstorm Insurance Association (TWIA) has been struggling with some severe financial and management challenges in recent years. The state-run, non-profit organization provides some homeowners insurance protections to properties in coastal regions of the state. The organization is typically the only place where homeowners can find protection against wind damage along the coast. Despite past struggles, TWIA officials expect that 2013 will be a good year for the organization.
TWIA manages to settle numerous lawsuits
TWIA has been in debt since early 2012 having suffered a grievous financial blow from powerful natural disasters that struck the state in the early months of the year. The organization has also been the subject of various lawsuits throughout 2012, many of which have come from those that suggest that the organization has mismanaged its duties in the homeowners insurance sector. The organization recently settled some $135 million in suits that claimed the organization did not properly honor home insurance policies and withheld claims payments from consumers.
TWIA could have $14 million surplus by year’s end
Though TWIA has been confronted with challenges over the past year, TWIA officials are projecting that the organization will see its first surplus by the end of this year. One of the major contributors to this surplus is the fact that several of the organization’s legal battles have been resolved. As such, the organization is no longer liable for legal costs and will have more money to spend on other issues. TWIA officials suggest that the surplus will reach $14.7 million by the end of this year.
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Lawmakers remain unconvinced of viability of TWIA
Texas lawmakers remain skeptical of the homeowners insurance organization despite news of the potential surplus. These lawmakers have expressed concerns in the past regarding the organization’s ability to pay claims in an appropriate manner. Some legislators believe that there are better homeowners insurance options available to residents in coastal regions and have been working to invest funds into these alternatives.