Monday, 25 March 2013

Board meets on Texas Wind Insurance Assoc. future

AUSTIN, TX (AP)- The board of the Texas Windstorm Insurance Association will have a meeting to determine the future of the agency that provides coverage to homeowners along the coast.

Better known as TWIA, the association has been in serious financial trouble for years. The board is considering putting TWIA into receivership at a meeting on Monday.

The association provides insurance to 266,000 homeowners and businesses who cannot find commercial insurance because of the risk of hurricanes or severe storms. TWIA relies on all of the insurance companies in Texas to help finance it.

But following major hurricanes and mismanagement, many question whether TWIA can provide coverage if another hurricane strikes. The Legislature overhauled the association in 2011, but the problems persist. The board has been searching for a way to become more solvent. 

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