# Texas Windstorm



## Runway (Feb 6, 2005)

Well it appears the the TWI people want me out of my place in Sargent. I had an inspector come by. He pointed out a little deferred maintenance on the overhang on my roof and left a message to get it repaired. When I got with the roofer, we called TWIA to confirm what needed to be done. We are talking less than 3 square feet of repair.
After sending in the pictures as requested, I got a letter saying I need a windstorm certificate from an engineer. I called several in the area and got essentially he same response, that any repair less than 100 sq ft did not require a windstorm certificate. According to Matt Sist, a big guy with TWI, the rules have been changed and ANY repair requires a windstorm certificate. Now I have to rip off the repair (in the spirit of full disclosure, I replaced more of the roof because it just made good sense) let an inspector see the four screws that hold the roof deck down, then replace the perfectly good roof repair. Including the engineers fee and the double roof repair, I'm looking at about $3k. So I say to myself "Self, instead of throwing more money at a roof repair than would in effect only cover 3% of the roof ( and probably what I would be able to recover inthe event of a claim) why not get someone to build a new roof over the whole house and be done with it. Only problem with that plan is now I am looking at $10-$15K. Sure is putting a dent in my fishing money! Anyone else smell a rat in the TWI and TWIA?


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## force10 (Aug 16, 2005)

Total scam.

Sent from my PC36100 using Tapatalk 2


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## BlueWaveEd (Jan 3, 2007)

Absolutely ridiculous what has happened to insurance in Texas


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## Mont (Nov 17, 1998)

If anyone but the government was selling TWIA insurance, they would be in jail. It's insolvent, over priced and the chances that you will collect on it when you really need to are very small. I am seriously considering not renewing mine this year. It's a bad investment in my book.


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## kinja (May 21, 2004)

Mont said:


> If anyone but the government was selling TWIA insurance, they would be in jail. It's insolvent, over priced and the chances that you will collect on it when you really need to are very small. I am seriously considering not renewing mine this year. It's a bad investment in my book.


Certainly an option. Especially for inland locations. I bought myTiki place in April of 2008. Finally placed TWIA and TXFP coverage in Late July of 2008. Got paid over $100,000 7 days after Ike without need for any large supplement.

The adjuster was good and perhaps better than most I've encountered in the last twenty years in the business. So your shopping experience will vary greatly at times.

The WPI 8 rules are stupid stupid stupid though. That's why most of the engineers have pulled out of the program.


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## RAYSOR (Apr 26, 2007)

Mont said:


> If anyone but the government was selling TWIA insurance, they would be in jail. It's insolvent, over priced and the chances that you will collect on it when you really need to are very small. I am seriously considering not renewing mine this year. It's a bad investment in my book.


I could not agree more Mont, sometimes we keep doing the same thing over and over again and it is still not right, just try collecting anything from the gov't haha


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## irbjd (Aug 11, 2005)

Mont said:


> If anyone but the government was selling TWIA insurance, they would be in jail. It's insolvent, over priced and the chances that you will collect on it when you really need to are very small. I am seriously considering not renewing mine this year. It's a bad investment in my book.


Is TWIA poorly run: yes. However, I'm going to have to disagree with you that it is over-priced. If anything it is priced well under what you would get the same coverage for on the open market.


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## catndahats (Sep 15, 2005)

TWIA is a rat's nest of BS.

For the consumer with a mortgage you are required to maintain insurance, but there is zero competition in the market so the prices are sky high IF you can find some company willing to insure. It leaves you feeling desperate to even secure windstorm insurance, and the insurance companies know it.

TWIA paid out after IKE and we got a new roof---first and only claim in 30 years. They were fair and prompt to pay for us.

Since then however, they send out an "inspector" every year, and look for the most ridiculous reasons to CANCEL your insurance. The inspector last year was some kook from Chicago that knew NOTHING about coastal Texas. 

We were threatened with cancellation because a crepe myrtle was growing within 3 feet of our roof (limbs the diameter of your pinkie finger)-----not touching, not even near.

One neighbor was cancelled because of a 2" crack in a storm window pane. 

And it is impossible to get coverage if your roof does not have a windstorm cert.....

If you don't play the mortgage company's game, they'll gladly find you insurance at 5 times the going rate..........yeah, it is a crock and stacked against the consumer.

This is the kinda poop that needs to change.


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## CHARLIE (Jun 2, 2004)

Well it has been this way for years. If you work on anything that the windstorm covers you must have it inspected and by an approved engineer and the report sent to TWIA. Several engineers in our areas have been removed from the approved list because they were just taking your money and not even inspecting.The approved engineers are usually easier to work with than the windstorm inspectors. From their side of the picture the reasons were that Jake leg work was being performed and TWIA was covering it and it was failing so they had to do something. If you want to get involved with some real insurance issues just get in the middle of flood insurance in coastal areas.


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## Runway (Feb 6, 2005)

_If you don't play the mortgage company's game, they'll gladly find you insurance at 5 times the going rate..........yeah, it is a crock and stacked against the consumer._

That is exactly what is happening. I got the letter from the mortgage company yesterday. Now I am in a "no-mans land." I can't get the windstorm certification done because the work is already complete (unless of course, I have it ripped off and do it again) and can't get the insurance unless I comply with the rules that are changing. The sad news is that even the people at TWIA aren't up to date on the requirements. If they were, I would not be in this position.
I would like to continue to be a property owner down there, but this deal sure has me looking at getting out of there and finding a new weekender somehere off of the coast. The losers will be the community and the state. The structure will have to be demolished (no taxes collected except for the land) and I won't be down there spending cash for restuarants, bait, gas, etc...


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## Smackdaddy53 (Nov 4, 2011)

Eff a bunch of windstorm inspectors. Back when I installed and fabricated aluminum hurricane shutters we had windstorm inspectors come by jobsites and most of the time the lazy SOBs wouldnt even get out of their vehicle, theyd just roll down the window and ask me to hold up a fastener out of my toolbelt then leave. If they did get out and walk around it was for no longer than about a minute because theyd come shake my hand and leave. Ten or more stops a day at $250-275 a pop is a friggin scam.

http://www.fishingscout.com/anglers/SmackDaddy


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## KJON (May 1, 2006)

Changes are coming, should get interesting!


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## jebatu (May 22, 2006)

That's why we sold our Little Place in Sargent between Taxes and Insurance you couldn't afford to have a fish camp


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## Bassman5119 (Feb 26, 2008)

Mont said:


> If anyone but the government was selling TWIA insurance, they would be in jail. It's insolvent, over priced and the chances that you will collect on it when you really need to are very small. I am seriously considering not renewing mine this year. It's a bad investment in my book.


You and me both Mont. Paid my house off last year, so don't have to have it, but struggling with, should I have it. No real damage during Rita or Ike, but never know when a tornado will spawn during one. Am thinking of putting that TWIA money in a roof account and let that pay for the new roof. If I'd have done that 15 years ago, I'd have a new roof paid for by now.


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## dwycoff (May 25, 2004)

I could do the same but not sure if you discontinue insuance and then decide to sell if they would give you a hard time.


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## owens33 (May 2, 2007)

got the "letter" last fall. puttin on new siding this year. they gave me 3 options. roof, siding or window and door coverings. this is a criminal scam and the reason it's such a mess is because the govt's running it. the reason the govt's running it is because we were offered a "govt option". that dried up all the private incentive.


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## Fordzilla06 (Oct 14, 2010)

How is TWIA legal? Isn't it a monopoly? Aren't monopolies illegal? It's a bunch of government BS. Should be an open market, and it would be run effectively. Just like any other government run entity it sucks and will never be run effectively.


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## Shredded Evidence (Jun 25, 2007)

I don't know how new houses are being built in any coastal counties to be honest. If you have a loan you must have flood and WS insurance and it is getting extremely difficult as well as cost prohibitive to do so. I know it is all but impossible to get new insurance on commercial structures in at least Matagorda county. Being grandfathered in is the only way and if it is sold the new owner can't get insurance. 

We own our place in Sargent and pay the insurance which is more expensive than our property taxes each year. 

Maybe I am not doing it right? We are in the Govt pool for flood and windstorm.


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## Texxan1 (Dec 31, 2004)

TWIA does not pay worth a ****!!!!!!!!!!!

I had to sue them after Ike!!!!!!!!

I ended up winning, but lawyer took 25% of that.. Still ended up a loss.

Insurance is the biggest reason I am scared to build new in louisiana. Its getting as bad as texas is with windstorm and flood.

I know one thing for sure. Once my mortgage is paid off. I will NOT pay TWIA a dime ever again, or flood for that matter.

Capt Thomas


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## gerstoy (Jan 4, 2007)

Smackdaddy53 said:


> Eff a bunch of windstorm inspectors. Back when I installed and fabricated aluminum hurricane shutters we had windstorm inspectors come by jobsites and most of the time the lazy SOBs wouldnt even get out of their vehicle, theyd just roll down the window and ask me to hold up a fastener out of my toolbelt then leave. If they did get out and walk around it was for no longer than about a minute because theyd come shake my hand and leave. Ten or more stops a day at $250-275 a pop is a friggin scam.


My inspector actually sent pictures that could have only been taken from the roof. Had to trim some branches on my tree back. They did need trimming as they were almost touching the roof.

Still, this whole deal really sucks. I've heard State Farm still covers windstorm, but it appears everyone else has dropped it. Might give them a call, but then who knows how long they will carry it. My house is paid for and I live north of 35 in Matagorda county so, maybe I should just cancel like Mont said. Put that money in the bank for a really rainy day.


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## makoclay (May 25, 2004)

I just dropped my windstorm coverage from them for my boathouse. I had $30K worth of coverage and my premium was almost $2,000 per year. I think the deductible was $2,000. I am just going to roll the dice on the boathouse. The premium for the home is much more reasonable. I understand it is more because it is over the water, but I considered that to be excessive.


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## acoastalbender (Jul 16, 2011)

Fordzilla06 said:


> How is TWIA legal? Isn't it a monopoly? Aren't monopolies illegal? It's a bunch of government BS. Should be an open market, and it would be run effectively. Just like any other government run entity it sucks and will never be run effectively.


It is exactly that. The private insurance co's cherry picked all the best deals in Texas and didn't want to pick up coastal liabilities because of the way the Texas insurance bureaucrats allowed them to operate. So, Texas came up with their own "insurance" company out of neccessity. I don't know that you can expect anything different when you have gov't trying to run a business...think "ObamaCare"...

.


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## warlock (Mar 27, 2006)

I may be one of less than a handfull of individuals who understands TWIA and thier operations. PM me if you want to ask why.

Currently TWIA has 74 Billion in exposure in 14 Coastal counties and less than 200 million in cash to pay claims. They are insolvent. They cannot sell pre-event bonds and do not have money for reinsurance. There is no backing from the State and if you think there is I will be happy to show you the testimony from the insurance commisioner.

A movement to send a letter to all policy holders about solvency has be shut down as alarming...if we have a storm this year and things do not change, do not plan to be paid if you have a claim. The 81st legeslature six months after IKE changed it to the current broke system. Crazy but local coastal legeslators authored the plan. As an Insurance provider I have increased my liability coverage five fold because I know I am selling insolvent policies...but then again that same legeslation reduced my liability to zero.


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## jeffm66 (Sep 14, 2010)

If you don't have windstorm or flood would your contents be covered by homeowners in a hurricane? I dropped my flood but kept windstorm for now.


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## vette74 (Oct 11, 2009)

I might get flamed for this but I actually am a windstorm engineer. To the OP call me and I can swing by your place when I am in the area. I can charge you my minimum fee. Everything else people have said is true. There were a lot of bad inspectors that got kicked off. The reason I am still around is that I turn down at least 50% of the calls that come in my office. It is a racket there is no other insurance company that is willing to write in the coastal county's.


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## stdreb27 (Aug 15, 2011)

warlock said:


> I may be one of less than a handfull of individuals who understands TWIA and thier operations. PM me if you want to ask why.
> 
> Currently TWIA has 74 Billion in exposure in 14 Coastal counties and less than 200 million in cash to pay claims. They are insolvent. They cannot sell pre-event bonds and do not have money for reinsurance. There is no backing from the State and if you think there is I will be happy to show you the testimony from the insurance commisioner.
> 
> A movement to send a letter to all policy holders about solvency has be shut down as alarming...if we have a storm this year and things do not change, do not plan to be paid if you have a claim. The 81st legeslature six months after IKE changed it to the current broke system. Crazy but local coastal legeslators authored the plan. As an Insurance provider I have increased my liability coverage five fold because I know I am selling insolvent policies...but then again that same legeslation reduced my liability to zero.


IMO they are betting federal funding will pay for most of the damage. And are just supplemental coverage.


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## sea hunt 202 (Nov 24, 2011)

*twia*

Oboma dosen't care for whiteis people.


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## LandLocked (Apr 28, 2005)

TWIA is proof that political contributions can get you what you want. All you need to do is apply the proper amount of grease to the right palms.


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## EndTuition (May 24, 2004)

I just replaced a perfectly good 4 year old roof because it was not certified. $6k.

Yep, it's a rip off.

I made it as easy on myself as I could. Call Holden roofing.


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## warlock (Mar 27, 2006)

There is no State or Federal backstop for TWIA. None!


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## Muddskipper (Dec 29, 2004)

warlock said:


> ....Currently TWIA has 74 Billion in exposure in 14 Coastal counties and less than 200 million in cash to pay claims. They are insolvent. .....if we have a storm this year and things do not change, do not plan to be paid if you have a claim. .....


This is farily accurate ...

I sell insurance for a living (mainly in the commercial world) but do have some personal lines clients

In short - if you are going to have work done - *don't go cheap on the roofer* ... a good roofer in your area will know what to do and the inspections that are needed for TWIA - (WPI-8)

If you hire some guys off the street to do the work, you better know the process


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## vette74 (Oct 11, 2009)

Here are my recommendations after looking at approx 2000 roof/patios/homes/ commercial buildings since hurricane Ike.
1. Pay the extra money to have your roof hand nailed.
2. Do not pay the contractor until you receive the WPI-8 Certificate.
3. Do not close on the house until you receive the WPI-8 Certificate.
4. If the home you are looking at purchasing was built after Jan 1. 1988 and it does not have a WPI-8 certificate on the ENTIRE STRUCTURE buy a different house.
5. If you re buying a home and there are roof repairs get a WPI-8 on the repairs by the seller.
6. The term WPI-8 can be confusing. A WPI-8 is issued by Windstorm after the engineer sends in his WPI-1&2. A WPI-8 can be done on a door, windows, roof, porch, entire structure ect. If you are buying a house make sure you verify it has the correct one.


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## gerstoy (Jan 4, 2007)

warlock said:


> I may be one of less than a handfull of individuals who understands TWIA and thier operations. PM me if you want to ask why.
> 
> Currently TWIA has 74 Billion in exposure in 14 Coastal counties and less than 200 million in cash to pay claims. They are insolvent.


So based upon your numbers, if Texas had a hurricaine of any signicance, there would be no money to pay out and no government to the rescue.

If you have a mortgage, I assume you have no choice but to play the game.

I know a fishing forum isn't the place to seek legal or financial advice, but it sounds to me that if you have no mortgage, you could just set that money aside and be better off regardless fo the outcome, correct?


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## warlock (Mar 27, 2006)

The answer is yes and no...they can handle a hailstorm or tornado locally but not a Hurricane...The readers digest version below.
Overview: Using TWIA numbers...and I have the Documentation...
Hurricane Strike on the texas coast using 75th percentile model loss...
Galveston = $7 billion
Corpus Christi = $5.7 billion
Brownsville = $900 million

Calculation of claims funding for the 2013 hurricane season:

1. Cash on hand = 0 - this is confirmed from TWIA on the Public Information Response received yesterday. They have lost 180 million this year.,

2. Funds in CRTF = $180 million per TWIA on the Public Information Response received a couple of days ago

3. Class 1 Bonds -not marketable = 0 - Paid back by TWIA but there broke.

4. Class 2 Bonds - without the Class 1 bonds, these drop down and TWIA has to repay half with future revenues. These are also not marketable because TWIA has no future revenues to repay any of its share. Most recent financials were a large loss. My call = 0 

5. Class 3 Bonds - 60 day post event Will be marketable because they are repaid by insurance company assessments = $500 million

6. Reinsurance no money to buy any because they are losing money. Attacment point is 1.63 Billion anyway and you never get there. = 0

Total available for claims in the 2013 hurricane season for TWIA = $680 million. There are no hurricanes strikes of any magnitude that could be funded. This puts TWIA in solvency risk from a large thunderstorm in an urban area.

There is no State or Federal backstop...None!


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## WillieT (Aug 25, 2010)

My wife and I have been planning on retiring to the coast in about a year and a half or two. I even posted a thread a couple of weeks ago on windstorm and flood insurance. After reading through this, I am not sure if we can get down there. We do not have the money to self insure, and will have a lot of our retirement locked up in a home. Does this mean that all the people living along the coast are just SOL if a hurricane hits? What are the alternatives?


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## warlock (Mar 27, 2006)

Folks there are three bills currently in the Texas legeslature dealing with this and all three suck...Two do little to move the numbers and one which seems to have the republican leaderships approval basically doubles insurance rates in coastal counties...to market based rates, and solvency. 

They have been fighting between special interest groups the last two sessions and left coastal residents high and dry.

Right after Ike our Republican legeslature HB 4409 changed the funding mechanism and took insurance company assesments out of the picture and this is the result...we have had straw man aurguments ever since but the system was doomed to fail from action that was in the interest of Insurance Companies doing business in Texas.


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## owens33 (May 2, 2007)

thanks warlock.
now, where is all the money we're paying in going? my premiums are high and have been going up for years. what's the solution? does twia have an attrition plan? just crank up the pressure til no one can qualify?


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## warlock (Mar 27, 2006)

Its going to guys like me who make a 16% Commision for selling worthless paper...and before sombody screems lawyers...get a grip, thats what you have been told...lets give back the 300 million they and there clients who had Ike claims (Real Losses) recived and you still have the insolvency issue...

There is no plan currently and although for some of us (Actually only three or four of us) have been trying to point this out for years. Our only hope is the legeslature that created this and then dropped the ball with the change. Then again the same guys are the same trying to fix it. At this point the true fix is Draconian.

There is legal gambling in Texas its called TWIA...Insurance guys like me are the house and we get our cut...


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## LandLocked (Apr 28, 2005)

This **** makes my blood boil. Thanks War for your insight into this situation. Its truly a tragic situation when elected officials allow what looks like nothing more than their own personal gain take precedence over the entire population of 14 costal counties. What a mess.


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## 98aggie77566 (Jul 7, 2009)

I guess I am lucky....my insurance still includes windstorm...and I dont have to go through the windstorm pool (TWI).

I could probably save about $80 a month by switching to another company + TWI.....but I just cant see dealing with all of the BS.

No inspections for us...and no hassles to deal with.

I was thinking about switching....this thread pretty much sealed the deal.....I'm staying put.


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## WillieT (Aug 25, 2010)

98aggie77566 said:


> I guess I am lucky....my insurance still includes windstorm...and I dont have to go through the windstorm pool (TWI).
> 
> I could probably save about $80 a month by switching to another company + TWI.....but I just cant see dealing with all of the BS.
> 
> ...


If you don't mind my asking, who is your insurance through? I am going to have to make some decisions if we are going to move, which I hope to do, or stay where we are, which is way too far from the salt.


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## gerstoy (Jan 4, 2007)

I've heard State Farm still insures for windstorm. You might give them a call.


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## vette74 (Oct 11, 2009)

shaggydog said:


> My wife and I have been planning on retiring to the coast in about a year and a half or two. I even posted a thread a couple of weeks ago on windstorm and flood insurance. After reading through this, I am not sure if we can get down there. We do not have the money to self insure, and will have a lot of our retirement locked up in a home. Does this mean that all the people living along the coast are just SOL if a hurricane hits? What are the alternatives?


I wouldn't let it stop you I just built a 2nd house closer to the coast. Just make sure it is built strong enough that you wont have any problems.


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## 98aggie77566 (Jul 7, 2009)

shaggydog said:


> If you don't mind my asking, who is your insurance through? I am going to have to make some decisions if we are going to move, which I hope to do, or stay where we are, which is way too far from the salt.


Germania....but they are not writing any new policies in my area...not sure about yours.


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## vette74 (Oct 11, 2009)

gerstoy said:


> I've heard State Farm still insures for windstorm. You might give them a call.


State farm goes through windstorm also. The only other company is geovera and their policy is almost worthless.


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## stdreb27 (Aug 15, 2011)

State farm pulled out of corpus. They even dropped my renters when I first moved down here.

The house I'm currently in, was insured by State farm for decades. But I call em up and ask em, hey you carried by grandparents policy since they bought to the house. I'm buying it, what needs to be done to stay your customer. 

They said, sorry can't write any new policies this close to the water.


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## spurgersalty (Jun 29, 2010)

shaggydog said:


> If you don't mind my asking, who is your insurance through? I am going to have to make some decisions if we are going to move, which I hope to do, or stay where we are, which is way too far from the salt.


You could always choose a "3rd tier county" to live in and still be closer that Watchthemhackme.


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## Runway (Feb 6, 2005)

Tip o' the Hat to vette74 and Warlock for great information. I have learned a lot and still have miles to go before this is done. One thing for sure, we as a voting public have our work cut out for us. The TWIA is another government run outfit that could not make it in the marketplace and is a sure sign of the type of thing that will happens as Big Brother continues to creep into our lives. ANYONE with property on the coast needs to follow this travesty closely. Coming to your pocketbook soon!


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## Fordzilla06 (Oct 14, 2010)

stdreb27 said:


> State farm pulled out of corpus. They even dropped my renters when I first moved down here.
> 
> The house I'm currently in, was insured by State farm for decades. But I call em up and ask em, hey you carried by grandparents policy since they bought to the house. I'm buying it, what needs to be done to stay your customer.
> 
> They said, sorry can't write any new policies this close to the water.


You must be talkin about windstorm from State Farm? Because I live on the island and am insured by State Farm, but wind is through TWIA, like anywhere on the texas coast, it's a monopoly.


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## kenny (May 21, 2004)

I'm no fan of TWIA, but the pool is the only way to get coverage. Without the pool, windstorm insurance would be almost impossible to get and if you could get a policy, you couldn't afford the premium.


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## gerstoy (Jan 4, 2007)

What's frustrating is that they didn't just invent homeowners insurance in the last few years. Some of these companies have been in business for decades. Some years good, some bad, but overall, they have grown bigger and bigger, making more and more money.

I'd like to ask how we wound up here, but I'm sure, like everything else in this country, people have been warning us all along. We just buried our heads in the sand because it didn't effect "us". It was always those other people, and somehow, they seemed to deserve what they got.

More and more it seems, they is us. hwell:


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## donbmt (Nov 19, 2004)

I am a windstorm inspector and will only do roofs for two clients who hand nail and document with pictures during installation. As far as new construction we do an engineered design with at least 20 pages of calculations (residential and commercial) and monitor construction by verifying approved doors, window, siding, etc. People call on a daily basis asking for a WPI-8 on their home whether it be for a roof, carport, or whatever and my answer to them when I say we can't do it is, call your State Representative and Senator.


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## donbmt (Nov 19, 2004)

I am a windstorm inspector and will only do roofs for two clients who hand nail and I document with pictures during installation. As far as new construction we do an engineered design with at least 20 pages of calculations (residential and commercial) and monitor construction by verifying approved doors, window, siding, etc. Our fees aren't cheap! People call on a daily basis asking for a WPI-8 on their home whether it be for a roof, carport, or whatever and my answer to them when I say we can't do it is, call your State Representative and Senator.


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## donbmt (Nov 19, 2004)

I am a windstorm inspector and will only do roofs for two clients who hand nail and I document with pictures during installation. As far as new construction we do an engineered design with at least 20 pages of calculations (residential and commercial) and monitor construction by verifying approved doors, window, siding, etc. Our fees aren't cheap! But they are nothing compared to our exposed liability. People call on a daily basis asking for a WPI-8 on their home whether it be for a roof, carport, or whatever and my answer to them when I say we can't do it is, call your State Representative and Senator.


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## capt. david (Dec 29, 2004)

Never had any issues with windstorm. During Rita I lost on bunch of shingles. Windstorm wrote me a check for the roof. Got my roof and my certificate no problems. Now during a storm things get complicated. Was it flood or wind damage?


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## warlock (Mar 27, 2006)

For those who dont believe...Posted on the Quorum Report...

*TALK OF THROWING TWIA INTO RECEIVERSHIP HAS FOLKS ON THE COAST JITTERY 
A Monday board meeting lists receivership as one of several options up for discussion to shore up the financial health of the state's windstorm insurer of last resort
When it comes to the topic of windstorm insurance in the Capitol, nerves are already frayed. Reform of the state's windstorm insurer of last resort - the Texas Windstorm Insurance Association - became a high stakes game of brinksmanship in the last two legislative sessions and could easily become so again this session with competing bills filed this year.
But with three words written into the agenda for its Monday afternoon board meeting, TWIA is raising a new round of apprehension. According to an agenda submitted to the Secretary of State, the board is slated to review options to address the windstorm insurer's financial situation with "rehabilitation in receivership" listed as the third and final option.
At this point, no one we talked to was all that sure as to how realistic the receivership option is or what might happen to people living along the coast as a result of such an action. But since sending TWIA into receivership would be akin to declaring bankruptcy, even the possibility - however remote - of that happening has many people on the coast on edge.

*


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## Dick Hanks (Aug 16, 2007)

Doesn't this all come down too the risk not matching the reward for private insurance companies? If they thought that they could make a dime on the current rates you are paying, they would be doing it. Long term forcasts are for Hurricanes to become more frequent and with that, there may be some more potent ones as well. 

You may think the amount of your present payments actually cover the risk, but obviously they don't. Think double, and the private sector might get back into the business. Can you even imagine what the payout was for the east coast storm? TheTexas coast is a much higher risk of having a bad hurricane than the upper east coast. 

It doesn't appear that most people have a realistic view of the potential danger and risk of financial loss of being in a hurricane zone. Pleople that live inland, shouldn't have to be paying higher taxes so the government can bail out the people that CHOOSE to live in a hurricane zone. That leaves, coast people paying for their own choices and risks. Remember, you do have the choice to move inland. 

The day should (not sayin will) come where coastal insurance is privatized again. If they could double the current rate, they probably would. They aren't in business too lose money. Get the wallet out.


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## warlock (Mar 27, 2006)

Dick,

You are not wrong but things to consider...Once again I can back any of this up with documentation.

Current rates to be actuarily sound seward of the intercoastal amount to a 253% increase.

Rates away from the water in the farthest parts of coastal counties could drop by 10% give or take.

35% of TDP GDP comes from texas Coastal Counties...Ports, Chemical, Refining ect...very few would actually live here if not for industry that drives not only the Texas Economy but also are National Security Assets.

In order to make the Texas Economy Viable we need to be able to have a work force that can afford to live here. Of the 280K homes insured by TWIA majority are 150K or less in Value (90% below 250K).


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## WillieT (Aug 25, 2010)

I want to thank those taking their time to make us aware of the situation with windstorm insurance. It is making me take a long look at my future plans. I will continue to watch this thread closely. Thanks again.


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## CDHknives (Mar 17, 2012)

warlock said:


> Current rates to be actuarily sound seward of the intercoastal amount to a 253% increase.


Can you give me an idea as to the formula to come up with the "actuarily sound seward of the intercoastal amount" for a house on Padre Island in Corpus Christi? I assume the risk is mapped to location and based on the home replacement value. I understand it is likely affected by a lot of variables, but mine is a relatively simple home built in 1983 and since I bought it I made 3 major improvements...a new roof, new siding+windows, and a new garage door, and all were inspected and passed by the windstorm engineer, so my house is about as wind resistant as I can make it.

Nothing I can do about rising water.


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## warlock (Mar 27, 2006)

Simple if the current Sen. Carona Bill passes the Legislature, if your paying a $1000 now for Windstorm I would plan on $2530 for the same coverage within two years, if a private carrier will take you.

The other bills don't do much other than keep the system insolvent...but the most expensive insurance is the insurance that does not pay....


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## kenny (May 21, 2004)

Dick Hanks said:


> Doesn't this all come down too the risk not matching the reward for private insurance companies? If they thought that they could make a dime on the current rates you are paying, they would be doing it. Long term forcasts are for Hurricanes to become more frequent and with that, there may be some more potent ones as well.
> 
> You may think the amount of your present payments actually cover the risk, but obviously they don't. Think double, and the private sector might get back into the business. Can you even imagine what the payout was for the east coast storm? TheTexas coast is a much higher risk of having a bad hurricane than the upper east coast.
> 
> ...


So Dick, what about Houston? Should it be abandoned and everyone move "inland"? How far from the coast do responsible tax payers live?


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## stdreb27 (Aug 15, 2011)

Fordzilla06 said:


> You must be talkin about windstorm from State Farm? Because I live on the island and am insured by State Farm, but wind is through TWIA, like anywhere on the texas coast, it's a monopoly.


Nope, basic homeowners insurance. I live off everhart and alameda.

They said I was within their setback.

I laughed and told them their setback was asinine. I'd been through 2 hurricanes 70 miles from the coast (rita and ike) And Corpus hasn't seen one since the 70's...



warlock said:


> In order to make the Texas Economy Viable we need to be able to have a work force that can afford to live here. Of the 280K homes insured by TWIA majority are 150K or less in Value (90% below 250K).


That is a really interesting point. Especially considering Corpus's mean household makes under 30k...



warlock said:


> Simple if the current Sen. Carona Bill passes the Legislature, if your paying a $1000 now for Windstorm I would plan on $2530 for the same coverage within two years, if a private carrier will take you.
> 
> The other bills don't do much other than keep the system insolvent...but the most expensive insurance is the insurance that does not pay....


If that was the case, I'd be up poop creek. As it is, taxes and insurance cost me more annually than my mortgage...


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## Red3Fish (Jun 4, 2004)

I feel for all you guys, and not to be a smart..., but there used to be a reason WHY the only houses past the seawall in Galveston were fishing shacks built out of driftwood!! In the early 60's only a single lane blacktop road, a ranch house or two, and a few fishing shacks past Scholes Field....NOTHING ELSE!!

Good Luck!
Later
R3F


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## warlock (Mar 27, 2006)

This is a good article published today by the only reporter and paper covering this in Texas...but you heard it first on 2cool...

http://www.caller.com/news/2013/mar/20/windstorm-association-may-be-headed-for-some/


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## WillieT (Aug 25, 2010)

warlock said:


> This is a good article published today by the only reporter and paper covering this in Texas...but you heard it first on 2cool...
> 
> http://www.caller.com/news/2013/mar/20/windstorm-association-may-be-headed-for-some/


Again, let me express my thanks for you staying on top of this issue and passing it on to us. That was a very interesting article. The paragraph below really concerns me.

Merely mentioning receivership has created tremors in coastal communities similar those felt in 2012, when Kitzman and a state representative from Amarillo discussed, in writing, the association's apparent lack of funding and whether the state is legally obligated to pay claims should it become insolvent.

It looks to me like Kitzman is looking for any way out if a big storm hits. Her concern is not for the people that the storm will affect, but if the state can get out of paying if the agency becomes insolvent. Typical.

Please continue to keep us updated if possible.


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## warlock (Mar 27, 2006)

FYI there is currently no Back Stop from the State...None. This is not a matter of opinion but law HB 4409 81st Legislature Author Representative Larry Taylor HD 23 at the time.

Frankly Kitzman for all he failings is the one trying to shed daylight on this matter...she is soon to loose her job with her Senate confirmation up in the air.


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## ol' salt (Jun 11, 2006)

There are not enough engineers to maintain the system. You can't get inspections and no insurance w/o engineer's signature.


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## Ernest (May 21, 2004)

*People that live inland, shouldn't have to be paying higher (insurance rates) taxes so the government (insurance pool) can bail out (subsidize) the (insurance rates) people that CHOOSE to live in a hurricane zone. That leaves, coast people paying for their own choices and risks.*

Dick - the first rule of government sponsored re-distribution schemes is we don't talk about government sponsored re-distribution schemes.

The second rule of government sponsored re-distribution schemes is the beneficiaries of the schemes will seek to rationalize the necessity of such schemes until their last breath.


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## vette74 (Oct 11, 2009)

ol' salt said:


> There are not enough engineers to maintain the system. You can't get inspections and no insurance w/o engineer's signature.


You are right about that. Last year there were 899 windstorm inspectors after the new test and recertification there are 187 and the majority of them including myself are so gun-shy of windstorm that I turn down 3 out of every 4 jobs that come in.


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## 2slick (Dec 5, 2008)

The mere mention of "receivership" would make me ill if I had insurance thru this group. I just paid a $725 premium to a company that went this route.....all I ended up with was a letter canceling my policy & a smaller checking account.


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## warlock (Mar 27, 2006)

Now Austin is reporting the recievership...the Engineer/Inspector thing is also, as reported, a fiasco. Taking what may be the most difficult things to become a P.E. and basically making it impossible to continue doing their Job...bureaucrats who would not even understand the math to work out an engineering load...Threatning them with thier licence and living.

http://www.statesman.com/news/news/coastal-insurer-could-be-headed-for-receivership/nWymS/

Any banks currently on this news would normally stop all loans in these areas and prepare to call the notes (Part of your contrct) because you are using an insolvent carrier...Thats how stupid this can get...fast!


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## Dick Hanks (Aug 16, 2007)

kenny said:


> So Dick, what about Houston? Should it be abandoned and everyone move "inland"? How far from the coast do responsible tax payers live?


Ernest hit the nail on the head, but I'm going to try to respond to the above comment anyway.

I think people need to be responsible for their own choices in life. I don't believe that that it is the governments job to subsidize "cost of housing" decisions" that we make. Private insurance rates are usually a part of the real cost of housing.

Example: If you have $1200 a month that you can use towards housing expense, the $1200 should cover the house payment, insurance, taxes, maintainance.and utilities.

Now if the real cost of insurance (not subsidized by the government) causes your insurance to go up by $200/month, what should happen now?
You do have the option of living in a house in the same vicinity that has a $200/ month smaller house payment. Or, the government can pick up the tab for the additional "real cost" to insure your home. If the government does that, they have to tax somebody to get the money to do it with. Some of those people will be taxpayers that had to accept living in a less expensive home than your living in because taxes prevented them from having more money to spend on their housing costs. Somebody, somewhere, needs to live in a less expensive home.

So... who should be living in the less expensive home? The guy who's chooses to live in a high insurance risk area and actually created the real expense, or the guy living in a low risk area?

If I have a home in northern Minnesota I shouldn't expect the government to subsidize part of my heating bill, because my winter heating bill costs more than a Texas home. It's part of the real cost of living in a cold climate.

Warlock is right, in that much of coastal industry needs to be where it is, and the workforce needs to be within an acceptable distance. But that doesn't mean that the workforce has to live in nicer home than the true cost of insurance will allow them to. It also doesn't mean that for all of the retired people like me, the government should be paying part on the insurance bill so we can live in a nicer home on the coast.


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## Hookless (Jan 18, 2013)

vette74 said:


> You are right about that. Last year there were 899 windstorm inspectors after the new test and recertification there are 187 and the majority of them including myself are so gun-shy of windstorm that I turn down 3 out of every 4 jobs that come in.


Myself, I will never certify any building unless I did or directly oversaw the design myself. I am in no way going to open myself to the added liability and exposure of TWIA putting me on the hook for a design I had no control over. And for the same reasons 10 fold I would not certify a residence of any type. Residential home builders are the lowest of the low in short cutting etc...

Now it is my opinion that no residential construction should take place South and East of the 120mph line. If an owner decides to build there, then they should take full liability unless they can find a private insurer.

As a taxpayer, I do not want to be on the hook to bail someone out just because they wanted a beautiful ocean view home.


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## 98aggie77566 (Jul 7, 2009)

I dont put much faith in the 120 mph vs. 130 mph theories.

I dont know what % of homes and $ is in the 130 mph zone...but it has to be pretty darn small compared to the 120 mph zone.

And if we get a good hurricane....both zones are toast.

If you want to reduce risk, you better back up to the Tier 2 line......and uninhabit every coastal county.

I guess I agree on the cost of living.....for me personally....if rates went up too much, I guess I would stay until the kids graduate and then head for the hills.


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## capt. david (Dec 29, 2004)

If Ike would have rolled up 288 and into Houston the damage cost woulld have exceeded that of Galveston.


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## Runway (Feb 6, 2005)

Some of you have made some good points about the property owner being responsible for the costs of ownership. I will not debate that. Let me offer a few points that may not have been considered. 1) On our place in Sargent, we pay school taxes for a school my kids did not or ever will attend. 2) I pay property taxes at a much higher rate than I do for my homestead in Houston. 3) There are no limits that Matagorda County Appraisal District has to stay within for raising my taxes each year (and they push the limit - I have had as much as doublling of the assessments.) 
My wife and I spend money down there each time we go, benefitting the markets, restaurants, and other local businesses, including but not limited to all the sales tax that is collected by the county. I am not looking to push my liability off on someone else, but the rules have been changing and we are just trying to stay in compliance. It has and will cost me more money - I am not asking for a handout. But to insinuate that we are not paying our fair share is a gross misrepresentation of the situation.


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## Ernest (May 21, 2004)

No, it is not a misrepresentation to suggest that the rates charged to many coastal property owners for windstorm is FAR below the market rates. Thats a fact. If the private market was cheaper, we would not have to use a gov. sponsored pool to provide coverage. Same with your Fed. flood insurance. 

Further, one can't defend one massive, government sponsored re-distribution scheme (windstorm insurance) by pointing to an even larger government mandated re-distribution scheme (property taxes). Lets be serious here. Texas property taxes are based upon the idea of from each according to his real estate wealth, and to each according to the number in his litter. 

Plus, if the local merchants or the local gov. are benefiting from you spending money on the coast, then they should be kicking in to help subsidize your premiums. Not me. Not some family in Amarillo.


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## kenny (May 21, 2004)

Red3Fish said:


> I feel for all you guys, and not to be a smart..., but there used to be a reason WHY the only houses past the seawall in Galveston were fishing shacks built out of driftwood!! In the early 60's only a single lane blacktop road, a ranch house or two, and a few fishing shacks past Scholes Field....NOTHING ELSE!!
> 
> Good Luck!
> Later
> R3F


That's not correct. My house, and all the other original ones in Jamaica Beach were built in 1962.


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## warlock (Mar 27, 2006)

The problem is everyone is under a false assumption that TWIA is currently supported by Tax Dollars...it's not...and has not been since after Ike and only prior to that when assesments were made to Insurance companies after a catastrophe and they in turn could write off premium taxes (Not paid to Texas) for Five years...but still only cents on the dollar for the assesment to the "Member" insurer who help set the system up in 1973.

There is currently no support or backstop for the fund...period.


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## kenny (May 21, 2004)

Dick Hanks said:


> Ernest hit the nail on the head, but I'm going to try to respond to the above comment anyway.
> 
> I think people need to be responsible for their own choices in life. I don't believe that that it is the governments job to subsidize "cost of housing" decisions" that we make. Private insurance rates are usually a part of the real cost of housing.
> 
> ...


Dick,
My wife & I live in a 900 sq. foot, 50 year old cabin at the beach that I bought and paid for 20 years ago. When I bought this place, I never expected anyone to subsidize anything. We all pay taxes which go to subsidize all sorts of things that we may not personally approve of or use, even shyster lawyers are beneficiaries.


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## Red3Fish (Jun 4, 2004)

"That's not correct. My house, and all the other original ones in Jamaica Beach were built in 1962."

Maybe I was off by a year or two, but we were coming back from the pass in late 50's or early 60's, and they had just put up the sign for Jamaca Beach. We stopped in there to see the Indian remains they found there....made all the papers.....still in the hole with dirt piled around and a canvas canopy over them!! No houses. LOL

Sea Isle was just getting started, and just a construction shack out front.....Cousin Bob won a lot in some drawing there and built. We fished out of there for a decade or so. I think there was some little convenience store/shack about where Sea Isle is today....cigs, beer and dead bait.

Before that, there wasn't much!! LOL

Later R3F


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## warlock (Mar 27, 2006)

TWIA is toast...as predicted...This statement from the TDI websight...

*Why could TDI decide to send TWIA to Rehabilitation at this time? *
TWIA's 2012 Annual Statement was filed on February 28, 2013. The Annual Statement shows that, based on additional litigation filed in 2012, TWIA is now insolvent. TWIA's liabilities exceed its assets by $183 million. Allowing TWIA to continue to operate in this condition could place new policyholders in jeopardy, and could further threaten the current policyholders. 

for the ful FAQ...

http://www.tdi.texas.gov/news/2013/documents/twiafaq3212013.pdf

FYI the report listed is currently not availible to the public.


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## Ernest (May 21, 2004)

Does this mean we will likely see forced placed insurance by the mortgage holders on properties previously subject to TWIA? Meaning, lender secures the TWIA type coverage from a private insurer on the property, and then bill the premiums thru to the borrower? 

If so, thats going to be a cluster of epic proportions. And, expensive for borrowers.


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## warlock (Mar 27, 2006)

Its a question to be answered...and yes it would be very expensive...


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## capt. david (Dec 29, 2004)

Lawsuits stemming from IKE really hurt TWIA. Some were valid in filing suits. but when attorneys start catering for business, something is wrong. I still wonder how Murdoch's was rebuilt from money recieved through TWIA.


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## warlock (Mar 27, 2006)

An issue, but even if you give all the money back given to the lawyers its still broke...its a nice diversion but a "red herring" in the end. I wish it was that simple but its not....


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## BS (May 24, 2004)

Pattillo said:


> Certainly an option. Especially for inland locations. I bought myTiki place in April of 2008. Finally placed TWIA and TXFP coverage in Late July of 2008. Got paid over $100,000 7 days after Ike without need for any large supplement.
> 
> The adjuster was good and perhaps better than most I've encountered in the last twenty years in the business. So your shopping experience will vary greatly at times.
> 
> The WPI 8 rules are stupid stupid stupid though. That's why most of the engineers have pulled out of the program.


The engineers are pulling out because of the added CE requirements. If I'm to understand correctly they are all PE's anyway, and miffed at these added requirements. I was talking to a Tx windstorm dude (working for the state) a couple of days ago at a FEMA meeting. I've known this guy for several years. To be honest, I felt like punching him in the nose at what he was explaining to me with regards to the upcoming changes. It's one screwy mess.

BS


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## reelist (Jan 16, 2013)

Sure seems like to me that all they must want to insure are new houses with all the latest new requirements. The older of the houses they want owners to make the improvements indestructable driving cost of projects up so high renovation plans get shelfed often. 120 mph wind code on metal shops doubles the price they were before recent storms. Gimme a break If a tornado drops on it somethings getting tore up no matter what. found out something just the other day when i was given a timeline and cancelation threat from TWIA on roof repairs. When I went to my agent to drop windstorm before they thought twice and save em their trouble found out my primary insurer carrys insurance on the twia policy for in the event they go broke or cant satisfy their obligation. Was told this way the primary provider don't pay out of their money and remain solvent no matter what happens with TWIA


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## owens33 (May 2, 2007)

insurance on your insurance. what a concept.


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## capt. david (Dec 29, 2004)

I have a catastrophic policy on my house also. Pays my mortgage if house is not livable after a event for up to 2 years. They also pay a living expense every month your not in the house. They pay my insurance deductable at the time of a claim. If house is destroyed they pay whatever my insurance doesn't cover. policy was really cheap to add to my mortgage.


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