Fox 26 Houston news with its reporter Greg Groogan has run another story on the problems facing the Texas Windstorm Insurance Association (TWIA). I’m quoted again in this story (accurately, just like last time). The story very well encapsulates the problem. TWIA does not have enough money to pay claims. Coastal residents don’t want their economy hurt by paying higher insurance premiums. And Texas taxpayers and property owners not on the coast don’t want to continue to pay wind and fire premiums not just on their own house but also help subsidize wind premiums on the homes of coastal residents, many of which are more expensive than theirs. As a result, most involved are in one of the Kubler-Ross stages of grief: (1) denial, (2) anger; (3) bargaining; (4) depression; or, possibly (5) acceptance. And I agree with the realtor quoted in the story: as it stands Texas catastrophic risk system is pretty much prayer based.
P.S. Houston Chronicle: anybody home?