Texas Watch—Consumer Protection. Corporate Accountability. Citizen Advocacy.

The governing board of the Texas Windstorm Insurance Association this week voted unanimously against paying for evacuation expenses when policyholders flee hurricanes.

The nine voting members of the board also rejected paying additional living expenses for policyholders who weren’t able to return to their properties because of damage caused by flood or other perils.

The state-backed association does pay some evacuation and additional living expenses when wind damage keeps policyholders from their properties.

But covering the cost of gasoline and lodging for all policyholders who evacuated ahead of storms in 14 coastal counties — even if their properties weren’t damaged — would be exorbitant, board members and association staff members said. So would paying for additional living expenses for damage caused by flood, association officials said.

The windstorm association includes all casualty and property insurers in Texas. It provides coverage to 66,094 commercial and residential policyholders in Galveston County and 232,172 in Texas.

Texas Insurance Commissioner Mike Geeslin asked the association to consider providing coverage for evacuations and additional living expenses for damages caused by perils other than wind.

“Individuals purchase a base homeowners policy, wind coverage through TWIA and a flood policy,” Geeslin said in a March 9 letter to Garry Kaufman, chairman of the association’s governing board and president of Galveston Insurance Associates.

“A complex claims settlement process can ensue as to cause of loss and the applicable forms of coverage, through the ALE (additional living expenses) costs continue while the claims are in limbo. Hence, you have a policyholder that has secured all the necessary and available forms of coverage, though the policies do not work in concert with each other to address the total financial risks associated with the storm.”

Read More: Galveston County Daily News