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big news for Texans living along the
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coast the Texas House has approved a
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bill that could reshape windstorm
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insurance in the state house Bill 3689
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aims to overhaul the Texas Windstorm
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Insurance Association or TWWIA
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potentially easing the financial burden
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on coastal homeowners the core of this
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change lies in how TWWIA will be funded
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currently the association relies on
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expensive public securities which often
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lead to high premiums for homeowners
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under the new bill TWWIA will instead
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use state-backed funding this shift
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could result in significant savings
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potentially translating to more
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affordable insurance premiums for
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coastal residents however the bill
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introduces a new element called a
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catastrophe sir charge in the event of a
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major disaster homeowners might see a
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temporary additional charge on their
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insurance bills while this may seem like
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an unwelcome cost it's designed to
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ensure TWWIA remains financially stable
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and can continue to provide coverage
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even after significant payouts these
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changes won't happen overnight most
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provisions of the bill will take effect
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on September 1st 2025 with the old
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system fully phasing out by 2027
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this gradual transition aims to
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stabilize the insurance system for the
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long term one of the most significant
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improvements in the bill is how TWWIA
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will handle disaster response the new
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statebacked financing allows TWWIA to
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borrow up to $500 million before a
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disaster strikes and an additional $1
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billion afterwards this means faster
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claim processing and less waiting time
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for homeowners in the aftermath of a
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storm at its core this bill aims to make
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windstorm insurance more sustainable
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while homeowners might face occasional
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search charges they could also benefit
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from potentially lower premiums and a
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more robust claims process it's a
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trade-off designed to keep coverage
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affordable and reliable in the long run
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the creation of this bill stems from
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years of criticism over TWWIA's
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financial structure lawmakers recognize
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the need for change to protect both
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homeowners and the association itself by
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moving away from highinterest public
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securities they hope to create a more
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stable and efficient system for coastal
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homeowners house Bill 3689 represents a
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mix of short-term adjustments and
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long-term benefits while there may be
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some new costs in the form of sir
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charges the promise of lower insurance
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premiums and faster disaster response
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could make a significant difference
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ultimately this bill aims to make
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windstorm insurance work better for
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everyone involved potentially easing the
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financial strain on Texas coastal
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residents in the years to come thanks
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for tuning in to This Week in Insurance
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