To financial grant is intended to help regions still finding difficult to recover from hurricanes
Rick Perry, Texas Governor, has signed law bills to reorganise the state’ windstorm insurance fund, the only property insurer for homeowners and business in 14 coastal counties, to grant financial help to areas still trying to recover from hurricanes in 2008 – reported Insurance Journal.
The Texas Windstorm Insurance Association was washed-out after hurricanes Ike and Dolly lashed the coast last year. For the Texans, it became the only wind damage property insurer, subsequent to private companies’ decision to pull out of the region following hurricanes Katrina and Rita.
It has been funded by policy holders’ premium payments, assessments on insurance companies that do business in the state, and reinsurance, a backup policy sold to insurance companies.
Mr. Perry’ office said that the changes he signed, will allow coverage of up to $2.5 billion in losses and ease funding method restrictions. The Texas Department of Insurance is required to develop incentives for insurers to voluntarily provide coverage on the coast.
The financial assistance that Mr. Perry signed, includes more than $425 million for disaster-related expenses.