Governor Abbott, TDI Announce Emergency Rule To Protect Weston Policyholders
Governor Greg Abbott today announced the Texas Department of Insurance (TDI) has issued an emergency rule to protect Weston Property & Casualty Insurance Company policyholders this hurricane season. The rule removes certain barriers for Weston's Texas policyholders to receive wind and hail coverage through the Texas Windstorm Insurance Association (TWIA) after the Florida-based property and casualty company was ordered by a Florida court to end its operations on September 7, 2022.
Of Weston's more than 30,000 Texas-based insurance customers, over 23,000 live in TWIA's Designated Catastrophe Area.
"The State of Texas is working to ensure Texas residents along the Gulf Coast are receiving critical wind and hail insurance coverage throughout hurricane season," said Governor Abbott. "These Texas customers are not at fault and have already taken the steps necessary to insure their homes and property. We must ensure that Texans, especially in our coastal regions, are able to be fully prepared and covered for any weather events with the potential to impact their lives and livelihoods."
“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.”
"Our coastal residents deserve nothing less than the actions taken today," said State Senator Juan "Chuy" Hinojosa. "I appreciate Governor Abbott and TDI Commissioner Brown working with Chairman Todd Hunter and our coastal legislative delegation to protect impacted Weston policyholders during the peak of hurricane season. This emergency rule gives our constituents, who will lose coverage through no action of their own, more time to get insured and the flexibility needed to make payments."
“Thanks to Governor Abbott and the Texas Department of Insurance for helping coastal residents and businesses," said State Representative Todd Hunter. "These rules provide protection, security, and safety for our Texas coast during this ongoing hurricane season."
“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. "Thank you to Governor Abbott and TDI for their swift action in helping coastal homeowners.”
The emergency rule provides Weston policyholders who qualify for insurance coverage through TWIA the following benefits:
- $0 initial payment: TWIA will 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.
- Additional time to apply: If customers apply for TWIA coverage by November 6, 2022, they will get coverage starting September 7 (the date when Weston policies will be canceled).
- Coverage even if a storm is approaching: Even if a storm is detected in the Gulf of Mexico, residents can still purchase a TWIA policy and be covered for wind and hail damage. A TWIA policy must be purchased by November 6, 2022.
More information is available here.