AUSTIN — State insurance regulators this week accused the Texas Windstorm Association of deceptive practices in relation to its handling of claims for loose shingles that may have been a result of Hurricane Ike.
In a filing Thursday, the Texas Department of Insurance said it will seek penalties against the association, which is the insurer of last resort for home and business owners along the Texas Gulf Coast.
Internal memos from the Texas Windstorm Association show the legislatively created but privately run association instructed adjusters to deny homeowners claims for raised or unadhered shingles. Raised shingles have been a common problem along the coast since Hurricane Ike, and the windstorm association’s denial of those claims are at the heart of a class-action lawsuit filed by Friendswood attorney Tony Buzbee.
In memos obtained by KHOU-TV, a top claims adjuster for Texas Windstorm wrote, “Shingles that show no signs of damage other than they are not sealed and can be raised with your hand are not considered windstorm damaged.”
Most shingle installations have shingles that overlap and seal off rain and outside moisture. Raised or unsealed shingles can allow rain water to seep in and cause damage inside a home.
In a statement to KHOU-TV, Texas Windstorm spokesman Jim Oliver confirmed the association does not consider unadhered shingles to be windstorm damage and that claims are denied.
However, he said if a policy holder can prove the shingle or shingles were sealed before a storm hit, the claim may be paid.
Consumer watchdog group Texas Watch called the windstorm group’s response “unconscionable.” The group’s executive director, Alex Winslow, told KHOU-TV it should be the windstorm association that must prove the shingles were not lifted or unsealed as a result of the hurricane.
An administrative hearing on the Texas Department of Insurance’s enforcement complaint against Texas Windstorm is scheduled for 9 a.m. Dec. 1 in Austin.
This story provided as part of KHOU-TV’s content partnership with The Daily News.
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At A Glance
WHAT: Texas Department of Insurance vs. Texas Windstorm Association
WHERE: State Office of Administrative Hearings, Austin
Docket No: 454-09-6187. C
WHEN: 9 a.m. on Dec. 1
ONLINE: Read the memos and see more in the Between the Lines blog at galvnews.com.
