TEXAS WINDSTORM POSSIBLE RATE HIKE
08/20/2010
The Texas Windstorm Insurance Association has asked state regulators to approve a 5 percent rate increase that would take effect in January.
The association, which sells wind coverage to customers in hurricane-vulnerable areas who can't buy it elsewhere, calculated it really needs rate increases of 27 percent for residences and 36 percent for businesses. It asked regulators for a 10 percent rate increase last year, but Insurance Commissioner Mike Geeslin rejected the request.
Under legislation passed last year, the commissioner has 30 days to review planned rate hikes of 5 percent or less. If he takes no action during that time, the increase automatically can take effect. For anything higher, the commissioner has 60 days to act.
TWIA residential policies average around $1,220, per year, according to the association. A 5 percent hike would add $61.
As of July 31, the insurer covered about 225,000 residences and 14,000 businesses.