Legislation Addressing Property Claims Litigation Likely In Texas

By the end of 2008, the Texas residual market for insuring seacoast properties for wind and hail figured it had enough resources available to pay claims for both Hurricane Ike and Hurricane Dolly that hit the Texas coast that year. That was before the Texas Windstorm Insurance Association was inundated numerous large class-action lawsuits over its handling of Ike and Dolly claims. The cost of those lawsuits ran into the hundreds of millions of dollars and forced TWIA into a precarious financial situation.