The Texas Department of Insurance (TDI) announced an emergency rule this week removing barriers for Weston Property & Casualty Insurance Company policyholders to receive wind and hail coverage through the Texas Windstorm Insurance Association (TWIA). Weston’s Texas policies will be canceled on September 7 after the Florida-based company went insolvent.
The emergency rule allows for Weston policyholders along Texas’ Gulf Coast to bypass a TWIA provision prohibiting acceptance of new coverage applications once a hurricane is in the Gulf of Mexico. Even if a storm is detected in the Gulf, residents can still purchase a TWIA policy and be covered for wind and hail damage.
“After learning that thousands of Texans in coastal areas could be without necessary insurance coverage due to no fault of their own, we issued this emergency rule,” said TDI Insurance Commissioner Cassie Brown. “Without TDI’s emergency rule, many Weston policyholders would not be able to get wind or hail insurance for this hurricane season.”
Starting September 7, the effective date of Weston policy cancelations, TWIA will offer Weston policyholders a 60-day extended period to submit an application. Once submitted, TWIA is authorized to issue the policy with an effective date of September 7 at the agent’s request to avoid a lapse in coverage.
Another change allows TIWA to set up a special payment plan starting August 31, 2022, giving policyholders flexibility in paying premiums. A payment of $0 will provide coverage for the first three months, and afterward the premium will be due in equal monthly amounts.
“This emergency rule helps provide immediate and more affordable windstorm coverage for thousands of coastal residents who were left without insurance in the middle of hurricane season,” said State Representative Mayes Middleton.
Of Weston’s over 30,000 policies in Texas, approximately 23,000 are in the TWIA Designated Catastrophe Area. The area extends from Jefferson County down to Cameron County.
The TWIA Board of Directors will hold an interim meeting on August 31 at 1:30 p.m. CT to discuss the insolvency of Weston and the Association’s preparation for Weston policyholders seeking TIWA coverage. The meeting will be held at TWIA’s Austin office.
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