[Reel-tor]

Oh, some of you probably don't remember but in recent years insurance companies have been cancelling homeowner policies for counties near the Gulf. The Legislature created the "Texas Windstorm" insurance pool and allowed the sale of policies for all those $1.5 million beachfront weekender homes on West Galveston Island. Now, when those "shacks" get wiped off the face of the earth and the Texas Windstorn fund goes broke, the Legislature allowed the Texas Windstorm pool to recover their losses by imposing an "assessment" on our home owner policies to pay for those $1.5 million beachfront weekender homes on West Galveston Island.

"Get off my beach, boy! But be sure to pay your homeowner assessment to rebuilt my million dollar weekend home on the beach"

This will be a "breaking news" story soon.

 

[Bobby]

My house is a long way from a million dollar home but I really don't think it has caused your insurance to go up very much. Its not right on the beach. It has been here since 1952 and never had anything but minor damage. Total cost paid by insurance has been about $8000. So can you explain, since I have paid my premium just like you how my house has cause your insurance to go up? Also tell me how much my home has increased your premium and I will see if I can get it paid for you.

 

[Reel-tor]

Bobby:
Please re-read my post, I said "when the Texas Windstorm fund goes broke" then the law lets the special assessments begin to all insurance companies. Last I heard the Windstorm "fund" doesn't have enough funds to handle a major strike on Houston area. Thus, it will (or is likely) to go broke and then we all who have ANY insurance policy in Texas will get hit with assessments.

This can ONLY happen IF & WHEN the Windstorm fund goes broke. Ike might break it!

Basically, the State of Texas "insures" the Windstorm Fund will have money to pay all claims of its policyholders. But if there is not enough money in the fund, then the State of Texas forces all property insurance companies in the state to pay a special assessement to cover the windstorm fund losses. The insurance companies WILL pass along this assessement to all their policeholders in the state. Thus, the Windstorm fund is a potential liability for all Texans no matter what part of the state they live in.

You are correct in that what insurance you and anyone else on the coast has paid has not impacted others in Texas YET. Hopefully it never will. But, stay tuned. I'm merely pointing out what could happen. This same thing happened in Florida with their Windstorm fund and they are paying lots more for insurance due to special assessments.

And, I have no quarrel with those who have a modest home or fish camp on the coast. I just don't think people ought to build mini-mansions on the beach and expect ordinary "joe's" to pick up their tab for such ill-advised construction in a known hurricane zone.

 

[Txfishman]

Reel-tor you should not carry your jealousy around on your shoulder like a big chip.