Texas Windstorm Insurer Sued for Passing on Ike Costs to Policyholder Charges

A Corpus Christi man is suing the Texas Windstorm Insurance coverage Association for hundreds of millions of bucks simply because he says it improperly passed on charges to policyholders like him following Hurricane Ike in 2008.

Ramiro Gamboa filed the lawsuit on March 31, The Austin American-Statesman reported.

The frequently-sued association is the state’s insurer of final resort for homeowners and companies that cannot uncover industrial insurance coverage since of the danger of hurricanes or significant storms.

The lawsuit says Ike left the Texas coast with more in damages than the association had in reserves, and the further $ 600 million in losses ought to have been paid for by insurance companies that subsidize the group’s coverage – not by charging policyholders far more.

Mark Kincaid, Gamboa’s lawyer, mentioned the association ought to have assessed insurers and rather, “they took it from policyholders’ premiums.”

A spokeswoman for the association did not right away respond for comment.

The association was formed in 1971 right after home insurers quit doing company in coastal elements of Texas since of costly devastation from Hurricane Celia a 12 months earlier. It now operates as a “pool” of all home insurers in Texas and forces them to cover extraordinary damages in situations of significant disaster.

Other lawsuits filed towards the association contain lawyer Steve Mostyn’s attempt to recover income from the association for the Brownsville college district, which he has explained was denied claims following Hurricane Dolly in 2008 due to racist adjusters.

Mostyn and other lawyers have also represented 1000’;s of customers who sued the association for hundreds of millions of dollars over botched claims following Hurricane Ike in 2008 and other storms.

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