The Independent Insurance Agents of Texas announced its support of the proposal by the Texas Windstorm Insurance Association (TWIA) to increase commercial and government building limits to $3 million.
IIAT Executive Director David VanDelinder, testifying in support of the proposal, cited reports of severe market problems from independent agents all along the Texas coast. VanDelinder told Texas Department of Insurance Commissioner Mike Geeslin reduced capacity in the excess wind markets is driving costs to unaffordable levels.
“All the signs of a hard market for this coverage are present, including reduced capacity, higher pricing and much higher minimum premiums,” said VanDelinder. “We believe the increase requested by TWIA is minimal, and we recommend exploring an even higher limit to bring down the cost of excess insurance.”
Current limits on commercial buildings are $1,907,000.
IIAT member James Elbert, representing the Galveston Windstorm Task Force, requested the commercial limits be increased to $5 million. Elbert is also chair of the TWIA Board. Geeslin did not say when he expected to make a decision on limits.
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