Texas Insurance Companies Are Panicking & That’s Bad News

When Hurricane Beryl ripped through Texas, it left behind a massive amount of destruction. Houses were leveled, cars were completely thrown, businesses were destroyed, and the amount of flooding that took place was catastrophic in some areas.

Once the hurricane was gone, people began assessing how they were going to rebuild their lives. Many had home damage that couldn't be repaired, while many lost things they simply cannot replace. Until you've been through a disaster, you can never know how you're going to react.

Get our free mobile app

Well, one of the first things many did was reach out to their insurance companies. After all, that's why you pay a homeowners insurance, renters insurance, car insurance, etc. They're there to protect you and help you fix the things you need done.

Unfortunately, because of the amount of claims that came in after the hurricane, insurance companies are panicking in a major way. The amount of claims coming in are overwhelming them, and they aren't for small amounts.

The Texas Windstorm Insurance Association, or TWIA, has said they anticipate draining half of its catastrophe fund because of the devastation left in Hurricane Beryl's wake. For context, TWIA has over $450 million sitting in that fund.

If you don't know what TWIA is, it's kind of a last resort for Texans if they're unable to secure coverage in the open market. TWIA only covers wind and hail damage, and obviously a lot of the damage cause by the hurricane was wind related. TWIA has reported 16,000 claims already received by their office.

Because of this, it's affecting ALL Texans. The agency took a vote, that passed 5-1, to recommend a 10% premium jump from the Texas Department of Insurance for residential and commercial policyholders.

We're already dealing with rising construction and labor costs due to inflation, and with the insurance hike, Texans are going to be paying more for their homes than ever. The one person that voted against it called on state legislature to deal with the issue of the rising costs.

Since Beryl, insurance companies have tightened up their standards even more. They're becoming even more selective about the type of damage they'll cover, and insurance rates will continue to climb. So in essence, you're paying more for less.

Things look like they're only going to get worse before they get better.