Texas Consumers: Begin shopping for new homeowners insurance coverage immediately!
The Texas Commissioner of Insurance has been appointed Receiver of the Texas-domiciled insurers in the Vesta Insurance Group. The Receiver has made the difficult decision to stop writing new policies, discontinue renewing policies, and cancel all existing policies that are currently in force as of 12:01 a.m. August 24, 2006. Vesta Insurance Group includes the following Texas member companies:
Texas Select Lloyds Insurance Company
Vesta Fire Insurance Corporation
Vesta Insurance Corporation
Shelby Casualty Insurance Company
Shelby Insurance Company
You have the right to choose your new insurance carrier.
This resource page provides information to help you begin shopping for new homeowners coverage in Texas immediately.
On June 28, 2006, Texas Select Lloyds Insurance Company, Vesta Fire Insurance Corporation, Shelby Insurance Company, Shelby Casualty Insurance Company and Vesta Insurance Corporation (the "Texas Vesta Companies") were placed into rehabilitation by the Travis County District Court. Texas Insurance Commissioner Mike Geeslin was appointed as Receiver and he in turn appointed Prime Tempus, Inc. to serve as Special Deputy Receiver ("SDR"). The SDR and a team of experts have been on-site at Vesta since that time to maintain control over the companies. The Receiver subsequently determined the Texas Vesta Companies could not be rehabilitated and requested an order of liquidation.
On August 1, 2006, an Order Appointing Liquidator and Permanent Injunction ("Liquidation Order") was entered by the Travis County District Court against Vesta Fire Insurance Corporation, Texas Select Lloyds Insurance Company; Shelby Insurance Company; and Shelby Casualty Company. The Commissioner now acts as Liquidator of these companies. Vesta Insurance Corporation is not subject to liquidation, and will remain in rehabilitation.
The liquidation of an insurance company includes collecting and selling its assets, and ultimately distributing the company's funds to pay creditors.
Vesta Fire Insurance Corporation, Shelby Casualty Insurance Company, The Shelby Insurance Company, and Texas Select Lloyds Insurance Company have been designated as impaired insurers ("Impairment Order").
Texas Department of Insurance Help Lines
The Texas Department of Insurance (TDI) Help Line is now open Monday to Friday from 8 a.m. to 5 p.m. Central time. Please call us at:
1-800-252-3439 463-6515 in Austin
Shopping Tips
Start shopping immediately. Make sure your agent and company are licensed. To verify whether an agent or company is licensed, call our Consumer Help Line or Look up an Agent or Look up a Company.
Understand homeowners policy types and coverages. Insurance companies may sell several types of homeowners policies in Texas, each with a different level of coverage. When comparing policies, make sure you compare policies with similar coverages. Use this worksheet to compare homeowners insurance companies and coverages.
HO-A policies provide limited actual cash value coverage of your home and its contents. Only the types of damage specifically listed in the policy are covered. The HO-A is a standardized Texas policy. This means the coverages in the policy, unless endorsed otherwise, will be identical, regardless of the company selling it. Keep in mind that even though the coverages are identical in a standardized policy, the price can vary by company.
HO-A amended policies provide more extensive coverage than the base HO-A policy but less coverage than an HO-B. Coverage provided by these policies may differ by company.
HO-B policies provide replacement cost coverage for most types of damage, except those specifically excluded in the policy. The HO-B is a standardized Texas policy.
Approved alternative policies offer varying levels of coverage. Companies may only sell alternative policies approved by the Commissioner of Insurance. Coverage may differ considerably from one company to another.
In general, HO-B policies provide the most coverage for the price, but not all companies sell them. Ask companies or agents to identify and explain the different policy forms. You can compare the coverages included in different policies on the Office of Public Insurance Counsel website. www.opic.state.tx.us/homeowner.php
Make sure your coverage fits your needs. Buy enough coverage to avoid a major financial loss if your home is badly damaged or destroyed. Talk to your agent about a realistic replacement cost for your home.
Decide whether you need additional coverages. Homeowners policies typically don´t cover damage from floods. If you live in one of Texas´ 14 coastal counties or certain parts of Harris County on Galveston Bay, your policy may exclude windstorm coverages. You´ll need to buy these coverages separately. You may also need to purchase policy endorsements to add or expand coverage for expensive items such as jewelry, electronics, or artwork.
Consider factors other than price. A company´s complaint history and financial rating from an independent rating organization can help you determine the level of service and stability you can expect from a company. Call our Consumer Help Line at 1-800-252-3439 or Look up a Company.
Ask about payment options. Some insurance companies offer payment plans that permit you to pay your premium through a series of installments. For example, you may make monthly or quarterly payments, rather than paying your entire annual premium "up front."
Learn more about flood insurance, including whether you´re in a flood zone: National Flood Insurance Program: Call 1-800-472-4661 or visit www.floodsmart.gov.
Learn about windstorm coverage for coastal residents: Visit the Texas Windstorm Insurance Association website: http://www.twia.org/
Having Trouble Finding Insurance?
Consumers who have been declined residential property insurance by at least two insurance companies may apply for coverage with the Texas FAIR Plan. To be eligible, consumers may not have received a valid offer of comparable residential property insurance from an insurance company licensed in Texas (not including any surplus lines insurers).
To obtain coverage through the Texas FAIR Plan, you must contact a Texas licensed agent who is an authorized Texas FAIR Plan Association producer. To find such an agent, please go to http://www.texasfairplan.org/ then click on the Find an Authorized Agent link.
Texas Property & Casualty Insurance Guaranty Fund www.tpciga.org
The Texas Property and Casualty Insurance Guaranty Association (TPCIGA) is a non-profit, unincorporated association of all Texas-licensed property and casualty insurers. It exists to protect Texas insurance policyholders and claimants when an insurance company fails. For current information about Texas unearned premium claims visit this link: www.tpciga.org/texasselectuep.html
The National Conference of Insurance Guaranty Funds www.ncigf.org
The NCIGF monitors national insurance activities and coordinates information for multi-state insolvencies.
Didn’t find the answer to your question? Care to make a comment? Please send your questions or comments about this web resource page to: ConsumerProtection@tdi.state.tx.us or call our Consumer Help Line at
1-800-252-3439 or in Austin 463-6515.
For more information contact:
Last updated: 09/25/2008
Archived File - for Reference Use
This file is historical in nature. Links and contact information may be outdated and no longer valid.
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