Perry Signs New Windstorm Bill

HOUSTON - Gov. Rick Perry signed a bill Tuesday he said would encourage insurance companies to provide coverage along the Gulf coast and increase residents' accessibility to windstorm insurance.

House Bill 4409 eases previous funding restrictions on the Texas Windstorm Insurance Association by allowing coverage of up to $2.5 billion in losses through various funding methods, including premiums, reserves, public securities, commercial paper and other market source financial instruments, according to a statement issued by the governor's office.

The bill also allows the association to establish variable rates based on the location of the customer and the effect that a storm may cause to their property, according to the statement.

“This legislation addresses a number of issues that have made it tough for insurance companies to remain engaged along the Texas coast, making it difficult for citizens to get the windstorm coverage they need and exerting upward pressure on insurance premiums across the state,” Perry said in the statement. “To me, this bill represents progress, incorporating sound business practices to improve the way we handle a critical issue that affects all Texans.”

The legislation also includes incentives to insurers that voluntarily issue policies to coastal residents, according to the statement.