Deadline Extended for TWIA Damage Appraisal Demands; Depopulation Program Begins
The deadlines for a Texas Windstorm Insurance Association (TWIA) policyholder to demand appraisal of a claim for damages caused by Hurricane Harvey have been extended, the Texas Department of Insurance reports.
The new deadline is 180 days from the day a TWIA policyholder received their most recent Notice of Claim Acceptance (in full or in part) letter. For some commercial policyholders, the deadline is 150-days.
A 30-day extension has been granted for Hurricane Harvey claims received on or before Oct. 24, 2017, on commercial policies with five or more structures and combined item limits of liability of at least $100,000. All other TWIA Hurricane Harvey claims have been granted a 60-day extension.
Before TWIA can consider making an additional payment on a Harvey claim, a policyholder must request appraisal. After their appraisal deadline expires, they cannot request additional payments on the accepted claim.
The act of requesting appraisal provides policyholders with options, according to TWIA. However, policyholders will incur out-of-pocket costs going through the appraisal process. To avoid out-of-pocket costs, TWIA said it can temporarily suspend the process (at their written request) and work with them to resolve the dispute at no cost.
If a claimant shows good cause, TWIA may allow agree to an extra 30 days to demand appraisal. The claimant must ask for the extra 30 days not later than the 15th day after the deadline to demand appraisal ends. This extra time is in addition to the extension made by the commissioner.
TWIA is the property insurer of last resort for wind and hail along the Texas coast.
Policy Depopulation
TWIA has begun its annual program designed to move policies out of its books.
This is the third year for the Assumption Reinsurance Depopulation Program (Assumption Program), which was authorized by the Texas Legislature in 2015.
The program is a process in which participating insurers make offers on large numbers of TWIA’s policies. It is designed to provide TWIA policyholders with property insurance options in the private market.
A Texas-authorized insurer planning to participate in the program must execute a Non-Disclosure Agreement (NDA) and Participation Agreement to access TWIA policy data and identify policies. In addition, participating insurers must submit supplemental documentation to TWIA and TDI for review.
Companies must re-enroll in the Assumption Program on an annual basis.