HIGHER WINDSTORM RATES

Although many in the insurance industry don’t think they are going up enough, the Texas Windstorm Insurance Association (www.twia.org) is set to raise its rates effective Sept. 1 for new and renewal policies. Commercial rates, including farm and ranch and all builders risk policies will rise by 8 percent. Residential rates will increase 3 percent.

TWIA, the insurer of last resort for windstorm coverage along Texas’ coast, announced that beginning July 18 its E-quote system will be updated to reflect the new rates for policies effective on or after Sept. 1, 2006. Renewal notices produced for renewal dates on or after Sept. 1 will automatically incorporate the re-vised rates.

No new or additional coverages can be written with TWIA on the day a storm is declared a hurricane and is within the boundaries of 80 degrees west longitude and 20 degrees north latitude, or in the Gulf of Mexico.

In addition, if a storm identified as a hurricane is downgraded from that status but still poses a threat to the Texas coast, new or additional coverages may not be written until the TWIA general manager determines the storm is no longer a threat.

TWIA’s Board of Directors and others in the insurance industry have been lobbying for increased funding for the windstorm pool. The Texas Legislature is likely to take up the issue in the legislative session that begins January 2007.