GALVESTON, Texas — Hundreds of thousands of families living in Texas coastal counties are facing the possibility of a hefty insurance rate hike. The Texas Windstorm Insurance Association voted Tuesday to increase rates by 10% starting in 2025.
If this rate hike goes into effect, it will impact a lot of people.
"When you talk about rate hikes, increases, you're hurting people," said State Rep. Todd Hunter.
TWIA's board of directors heard hours worth of pleas from lawmakers and constituents.
"We just cannot afford this increase," said one woman.
Residents are stressing about how this windstorm insurance hike would devastate their already-strained budgets.
"I'm going to use the heavenly vernacular of hell: oh, hell no," said another woman.
TWIA's board ignored the pleas voting 6-3 to pass the 10% rate hike anyway.
"Look it's devastating to our homeowners and small businesses up and down the Gulf Coast," said State Senator Mayes Middleton.
Middleton said this hike could make living and working along the Gulf Coast untenable for many families. Right now, there are about 250,000 TWIA policies in coastal Texas.
The average home premium is $2,300 a year. This hike would add $230.
"This is a real impact on people's bottom line," said Middleton.
TWIA told KHOU 11 News the hike is necessary. The current rates are falling short of covering TWIA's expenses.
The nearly 27,000 claims filed after Hurricane Beryl are only making the situation more dire. Senator Middleton said a bipartisan group of state lawmakers plan to fight against it.
"The next steps are to get with our coastal legislators and make our voices heard and ask our Texas Department of Insurance commissioner to stop this 10% rate increase," said Middleton.
Texas Department of Insurance Commissioner Cassie Brown will have the final approval on this rate hike. If she signs off, it will go into effect in January 2025.