More Twouble for TWIA policy holders

I've blogged about this before, now the law is taking effect and home and car owners may feel the sting of insurance reform. Again. From the Bay Area Citizen:

If a major storm comes through the area homeowners might get hit with more than property damage 

As a result of new Texas Windstorm Insurance Association rules that went into effect this year policy holders could also get hit with a surcharge to help pay for the damage.

Because of gross mismanagement of TWIA, this surcharge will be added to homeowners policies and auto policies and it doesn't matter where the storm hits, if the TWIA funds are exhausted, everyone on the coast will pay for it. So because of gross mismanagement of TWIA, Texans on the coast will bail them out. Sound familiar? Maybe TWIA is too screwed up to fail.

The new law also ushers in a complicated arbitration process homeowners must execute prior to filing a suit for damage. This process is so complicated it will require an attorney. It is very similar to the one created by the Texas Residential Construction Commission back in 2003 to resolve new home construction defects. This process and the TRCC was dissolved in 2009 after 6 years of incredible failure. TWIA will now give it a try on behalf of homeowners.

TWIA was created in 1971 as an insurer of last resort. It covered about 6% of homes in the coastal areas. The others were covered by private insurance. Now, after 10 years of reform, TWIA covers over 75% of the homes in the coastal area, becoming the only resort for many while the "free market" insurance companies "flee the market" for safer ground.

I remember a time when TWIA was not perfect. Now it is just simply screwed up.