The Texas Department of Insurance announced that Capitol County Mutual Fire Insurance Company has notified policyholders that their industrial fire insurance coverage will end effective with the policy monthly anniversary date in May 2009.
TDI fined Capitol County for bad faith and other claims violations in the wake of Hurricane Rita in 2005. The company was also hit with a number of policyholder lawsuits.
TDI said consumers who have received notice that their policy will be non-renewed should begin shopping for new insurance immediately to ensure that their home and property are protected.
The Texas Department of Insurance (TDI) offered the following tips when shopping for a new policy:
–Ask several companies and agents for price quotes because rates vary. TDI publishes homeowners rate comparisons that can help you shop. You can view the comparisons along with a variety of other useful information on www.helpinsure.com.
–Decide whether you need flood insurance. Most homeowners and dwelling property insurance policies do not cover damage caused by rising waters. You can buy a separate flood policy from the National Flood Insurance Program (NFIP). Call NFIP at 1-800-427-4661, visit its Web site, www.floodsmart.gov, or contact an insurance agent.
–Consider factors other than price. A company’s complaint history and financial rating can indicate the level of service you will receive. Buy only from licensed companies and agents. Call our Consumer Help Line or visit our Web site to verify license status.
–Ask about discounts. Some companies offer discounts. The discounts and amounts offered vary by company.
–Choose the highest deductible you can afford. Higher deductibles will lower your premium, but you’ll have to pay more out of pocket if you have a claim.
–Buy enough coverage to avoid a major financial loss if your home is badly damaged or destroyed. Talk to your agent about a realistic replacement cost for your home.
–Answer questions truthfully. Wrong information may result in an incorrect price quote, rejection of your insurance application, or cancellation of your policy.
–Consider the Texas FAIR Plan if you’re having a hard time finding insurance. If you have been declined residential property insurance by at least two insurance companies, you may be eligible for coverage with the Texas FAIR Plan. For more information or to find an authorized agent, visit www.texasfairplan.org.
–Consumers on the coast may be eligible to buy wind and hail coverage from the Texas Windstorm Insurance Association (TWIA). TWIA is the state’s insurer of last resort for wind and hail coverage in the 14 coastal counties and parts of Harris County on Galveston Bay. TWIA policies only cover losses from wind and hail damage, so a separate policy from another insurance company is needed to cover losses from fire, theft, and other events. To learn more about TWIA, talk to an insurance agent or visit the TWIA website at www.twia.org.
For more information visit TDI’s Capitol County Mutual Web resource page at www.tdi.state.tx.us/home/capitolcounty.html.
Was this article valuable?
Here are more articles you may enjoy.
U.S. Auto Insurers’ Strong Performance to Continue Through 2025: Fitch 
Construction Defects Are Not Covered Property Damage in Commercial Liability Policy 
Manufacturers Hit by Soaring Property Insurance Costs 
Debby’s Florida Claims Already Near 12,000 as Yaworsky Says Market Is Strengthening 
