(The Center Square) – The state of Texas has taken action to protect more than 30,000 people living along the Gulf Coast during the hurricane season after their Florida-based casualty insurance company was forced to close by the state of Florida. .
The Texas Department of Insurance issued an emergency order to protect customers of Weston Property & Casualty Insurance Company whose policies will be canceled on Sept. 7. It will help them get wind and hail coverage through the Texas Windstorm Insurance Association (TWIA).
While Weston resides in Florida, he holds a Texas license to do business in the state and had a large Texas population with approximately 22,000 Florida policies. Weston was the fifth Florida property insurer this year to be liquidated, according to Florida state regulators.
Earlier this month, the Florida Office of Insurance Regulation issued a notice to the Florida Department of Finance stating that Weston was “insolvent or nearly insolvent,” and DFS should begin bankruptcy proceedings.
It issued the statement a day after Demotech, an accounting firm, announced it had withdrawn Weston’s financial stability. Last month, Weston’s board of directors agreed to seek bailout after the company reported a $94 million loss over the past two years and rising insurance costs, Insurance Journal reported. report.
The five companies that folded this year did so after the state legislature and Gov. Ron DeSantis has been established amendments to regulate Florida’s property insurance market. These changes are expected to lead to consumer trends and lower prices over time, but more changes are expected next year.
Of Weston’s more than 30,000 Texas insurance customers, more than 23,000 live at TWIA. Known Areas of Catastrophe near the Gulf Coast. The area stretches from Jefferson County in the northeast along the coast to Cameron County in southern Texas.
“The State of Texas is working to ensure that Texas residents along the Gulf Coast are covered by wind and hail insurance throughout the hurricane season,” said Gov. Greg Abbott.
“These Texas consumers are not at fault and have already taken the necessary steps to protect their homes and property.” “We need to make sure that Texans, especially in our coastal areas, are prepared and prepared for every season. events that can affect their lives and their lives. “
The emergency law helps provide quick and affordable hurricane coverage to thousands of coastal residents, Rep. Mayes Middleton said. They offer policyholders in Weston who qualify for insurance through TWIA with several benefits including $0 down payment, additional time to apply for coverage, and protection even when a hurricane approaches.
The emergency order authorizes TWIA to implement a special payment plan starting Aug. 31, which gives policyholders flexibility in paying premiums and allows them to pay $0 in premiums. A $0 payment provides support for the first three months. After that, the monthly payments will be the same.
The law also allows customers to sign up for TWIA service by Nov. 6, 2022, although he will receive treatment starting September 7, when Weston’s rules expire.
Texans will also be able to receive aid even if the storm is located in the Gulf of Mexico, according to the emergency order. In general, people can’t buy a TWIA policy if a hurricane is headed for the Gulf of Mexico.
Residents will be protected from wind and hail damage as long as they purchase coverage by Nov. 6.
“Coast residents don’t have to do anything more than what happened today,” said Sen. Juan “Chuy” Hinojosa. Hinojosa, a Democrat, thanked Abbott and TDI Insurance Commissioner Cassie Brown for taking immediate action to protect Texans living along the Gulf Coast. “This emergency order gives our people, who will lose the opportunity to protect themselves through their own actions, more time to get insurance and the flexibility they need to pay,” he said.
TDI has released a lot on the Internet including guidance for Weston policyholders and encouraging those with questions to call 800-252-3439.