CORPUS CHRISTI, Texas — The construction business in Port Aransas continues to churn out homes, but things could be better. One builder told 3NEWS they have experienced prospective customers walk away because the windstorm insurance is too much for them to afford.
Real estate broker Suzette Freeman has heard similar stories.
"When someone buys a property, a residential property, they’ve got a mortgage, they’ve got taxes and you add in thousands of dollars a year for this windstorm insurance and it’s difficult," she said.
The issue is one that Charlie Zahn has been trying to solve for years. He is a member of a taskforce setup by Texas Rep. Todd Hunter to come up with an alternative to the Texas Windstorm Insurance Association (TWIA).
TWIA is an insurer of last resort for many property owners who can't get wind and hail insurance because of the risk of hurricanes.
He has come up with a bill for lawmakers to consider that he feels will help to lower insurance costs for coastal residents.
"If there is an event on the Texas coast, the windstorm insurance association would determine the cost of that event and they would borrow the money from the state and with the understanding that the money would be paid back in three years," Zahn said.
Where would the state get all that money?
Hunter said it would come from a yearly assessment on everyone's insurance policy.
"The concept is fire, windstorm, hurricane, tornadoes -- hail in particular -- they’re hitting everybody, and so you have a statewide plan, everybody is assessed, the whole state pays," he said.
How much savings could folks see under the new plan if approved?
We're told it could cut their costs in half.
The legislation passed in the House during the last session, but didn't make it through the Senate.
However, Hunter told 3NEWS there is great confidence in it passing this time around.