Jury Finds Texas Windstorm Insurer Adequately Paid City for Ike Claims

Texas’ wind and hail insurer of last resort in coastal areas announced that a judgment has been entered in its favor in a lawsuit brought by League City in Southeast Texas.

The judgment signed on Oct. 16, 2014, by Presiding Judge Kerry Neves of the 10th District Court in Galveston, Texas, stated that League City was not entitled to further payment from the Texas Windstorm Insurance Association (TWIA) over damage to city property from Hurricane Ike in 2008.

A lawsuit filed by League City in 2012 alleged that TWIA underpaid — by several million dollars — for damage to city property resulting from Hurricane Ike.

“The jury found that TWIA’s original payments of over $765,000 adequately compensated the city for the damages covered under its policy, except for an underpayment of less than 10 percent to one structure,” the association’s announcement stated.

TWIA reported that League City’s lawsuit sought “recovery for Ike damage that was not previously presented to TWIA. The jury found that TWIA did not receive prompt notice of all claimed damages and the city failed to keep and provide an accurate record of repair expenses as required by the policy. Ultimately, the jury found that these factors prevented TWIA from properly evaluating and paying the claim.”

League City is required to pay court costs associated with the suit, according to the judge’s Oct. 16 order.