Texas Windstorm Association Accused of being “unfair”

The Texas Department of Insurance is not happy about how the Texas Windstorm Association handled past claims for roof shingles that were lifted by hurricane winds.

A complaint was filed recently stating there were “unfair” and “deceptive” practices and claims were handled in “bad faith”. Since Hurricane Ike, 724 complaints have been made against the Texas Windstorm Association.

Customers that filed complaints are upset their claims were denied unfairly. Others filed complaints stating their claim was under-paid and a proper investigation of damages was lacking. One complaint, for example, is about how a claim was treated regarding loose shingles on a residential roof after Hurricane Ike. An engineer, hired by the state of Texas, inspected a customer’s roof and determined it needed to be replaced, stating (emphasis added): “It is my opinion that the shingles will not perform as designed under high winds and may fail causing moisture related damage to the interior portion of the residence. In my opinion, the roof should be replaced to prevent any future moisture related damage to the residence.”

However, when the claim’s representative sought guidance on the issue from a senior staff person, he was told the damage probably occurred before Hurricane Ike hit and there is no point to replace the roof when some tar could stick the shingles back on. Plus, if they replace this roof because of a few loose shingles, they would have to replace a lot more. The agent looking for guidance reports the shingles will not re-adhere.

Many businesses have been affected by Hurricane Ike and are represented in the complaints mentioned above. Before a natural disaster occurs, businesses should have a disaster recovery plan developed. Learn how here.