Recovery from damages to property in the Coastal Bend from Hurricane Harvey (aftermath pictured in Rockport) in August 2017 and Hurricane Hanna in July 2020 are still underway as of July 2021. Courtesy photo
Coastal Bend officials and residents once again will be actively protesting a proposed rate hike to be taken up by the Texas Windstorm Insurance Association at its Aug. 3 quarterly meeting. The TWIA Actuarial and Underwriting Committee recommended a 5 percent rate hike, which will be on the board’s agenda for consideration.
In addition to a letter to TWIA from the Texas coastal legislative delegation, the following organizations have notified TWIA of their objection to an increased rate hike of any amount: United Corpus Christi Chamber of Commerce
- Nueces County
- City of Corpus Christi
- Port of Corpus Christi
- Corpus Christi Association of Builders and Contractors
- Corpus Christi Area Builders Association
- Corpus Christi Association of Realtors
- Padre Isles Property Owners Association
“Any TWIA rate hike is unfair because the rates discriminate against coastal residents,” said state Rep. Todd Hunter (R-Corpus Christi). “After suffering two hurricanes and the virus, increased rates have a negative impact for us. The decision to increase them is economics motivated, and it needs to be people motivated.”
Corpus Christi Mayor Paulette Guajardo sent a letter to the TWIA board of directors, accompanied by a City Council resolution urging it to not increase rates. By statute, the board must send a rate hike recommendation to the Texas Department of Insurance within the next month, even if that request is zero percent.
“The undersigned legislators respectfully request that the Texas Windstorm Insurance Association (TWIA) Board not consider any rate increase on coastal policyholders, residents, and businesses at this time,” reads a letter dated July 29 that was sent to TWIA Chairman of the Board Franklin Womack by the Texas coastal legislative delegation.
The 22 signatures on the document include those of Texas Speaker of the House Dade Phelan (R-Beaumont), Rep. J.M. Lozano (R-Kingsville), and Hunter.
“A rate increase during an unprecedented season of economic distress would only cause an additional and cruel financial burden on coastal residents and business owners,” the letter continues. “Once again, we respectfully reiterate that the coastal delegation firmly opposes any rate increase on TWIA policyholders.”
The Chamber of Commerce encouraged residents to take action and submit comments that are due by noon Friday, July 30, to publiccomment@twia.org. In January, the Texas Department of Insurance rejected a rate hike by TWIA.
The TWIA board’s Actuarial & Underwriting Committee met on July 21 to review the Rate Adequacy Analysis and voted to recommend an increase of 5 percent for commercial and residential TWIA policies.
The position of the legislative delegation, the chamber, and other protestors is that now is not the time to consider an increase in rates on coastal residents. Families and businesses have faced extreme economic hardship due to the COVID-19 pandemic, and communities are still rebuilding four years after the landfall of Hurricane Harvey and last year’s Hurricane Hanna, they stated.
Hunter posed a deeper question of why the coast is punished for the weather it faces. Some people need three insurance policies — home, flood, and wind — which can sometimes exceed their property taxes on the coast, he said.
“Why is a hurricane treated differently when hailstorms are just as damaging as a hurricane, but there’s no specific insurance for it for a non-coastal town?” he said in an interview with Corpus Christi Business News. “We plan to take it to the next level, the governor's office, the Texas Department of insurance, and Legislature if needed.”
Also, to consider increasing rates before the new laws passed by the 87th Texas Legislature’s regular session, which ended in May, “seems rushed and out of step with the will of the Legislature,” he continued. The new laws go into effect Sept. 1.
Deadline for submitting comments to publiccomment@twia.org was noon Friday, July 30. Members of the Coastal Windstorm Task Force, led by Charles Zahn, will attend the meeting to speak against the rate hike during the 45-minute public comment section.
Residents may register for the meeting to watch via Zoom or YouTube and view the agenda in advance. The meeting begins at 9 a.m. Tuesday, Aug. 3.
