Texas Officials Blast Feds; Regulators Warn Insurers

Texas lawmakers have praised the state’s response to Hurricane Ike but are not quite so complimentary of the performance of the Federal Emergency Management Agency in the aftermath of the storm that made landfall in Galveston on Sept. 13.

At a recent meeting of the state Senate’s Transportation and Homeland Security Committee, Sen. Tommy Williams, who represents four counties impacted by Hurricane Ike, criticized the “faceless bureaucracy” at federal agencies for failing to meet the needs of southeast Texas following the storm, according to a release posted on the Texas Senate Web site.

Williams said that trailers for emergency shelter are desperately needed in his region. In the five weeks following Ike’s landfall, he said his region requested 4,000 FEMA trailers; only 150 were delivered. “I have people living in tents in the driveways of their homes and living in their cars right now because FEMA has not delivered trailers to the people in southeast Texas,” said Williams.

FEMA spokesman Simon Chabel defended his agency, saying it is responding quickly and compassionately, according to an Associated Press report. He said the agency has spent more than $250 million to help find temporary housing for Ike victims.

FEMA has also issued a statement noting that inspectors contracted by the agency have completed more than 350,000 inspections, or 97 percent of the requests submitted by homeowners and renters. Damage inspections are free and generally take 30 to 45 minutes. They are conducted by FEMA contract inspectors who have construction and/or appraisal expertise and receive disaster-specific training.

Complaints

The Texas Department of Insurance, meanwhile, reports it has received complaints from consumers indicating that through the words, tone, demeanor or actions of their insurance adjusters, they are feeling inappropriately pressured to engage the services of certain building and repair contractors identified by the adjuster.

Subsequently, TDI issued a reminder to adjusters, building and repair contractors, and insurers, that:

• An insurer, its representative or any other person may not misrepresent the terms and provisions of a policy.
• Those insured under a homeowners or dwelling policy are entitled to have their home repaired by the person of their choice.
• An insurer operating in Texas may not engage in an unfair claim settlement practice.

Not attempting in good faith to effect a prompt, fair, and equitable settlement of a claim submitted in which liability has become reasonably clear constitutes an unfair claim settlement practice under the state insurance code, the department said.

TDI also recommended that, among other things, insurers suspend any vacancy provision contained in the policy forms to allow continuing insurance coverage for residents and policyholders in counties devastated by Ike. TDI encouraged agents to contact insurers they represent to verify compliance and to advise policyholders accordingly.

Topics Carriers Texas