CLARIFICATION (4:50 p.m. Wednesday): In light of Tuesday's emergency rule, TWIA will delay charging former Weston customers for three months. After that, customers will be expected to pay their full TWIA premium in equal monthly payments.
ORIGINAL:
A Texas Department of Insurance emergency rule was issued Tuesday in order to protect Weston Property & Casualty Insurance Company policyholders who are due to lose their windstorm coverage.
According to Gov. Greg Abbott's Office, the rule will allow Weston customers to have three free months of coverage in order to avoid having to pay multiple premiumswhile transitioning from Weston to Texas Windstorm Insurance Association coverage, and a special payment plan will be available for those clients on Aug. 31.
Weston customers who apply by Nov. 6 also will also be covered retroactively, with TWIA coverage dating back to Sept. 7, the date Weston policies will be cancelled.
The rule also provides immediate coverage for Weston customers, who would typically be denied when switching insurance companies at this time of the year.
The rule comes as a Florida court deemed Weston insolventAug. 8; the company's policies will be voided Sept. 7.
This will leave about 23,000 Texas customers living in designated catastrophe areas without windstorm coverage at the height of hurricane season.
