In Texas, homeowners’ associations are in place to protect the members. HOAs generally have rules that the members are expected to follow and if they do not, it can lead to legal disputes.
However, there are other issues that HOAs are in place to address. Insurance can be a problem, particularly if there is a natural disaster. Since Houston and other areas of the state have had a recent history of massive damage from weather-related incidents and more are constantly lurking, it is essential to be up-to-date on potential challenges with insurance coverage. As with any HOA-related concern, having legal advice that works on this area of the law can be helpful.
Storms and damage are making it harder to find suitable insurance
Texas is the latest in the long line of states where property owners are having trouble finding affordable insurance that covers their needs in case of disaster. The trend started in Florida and Louisiana. Now, many Texans have needed to purchase their coverage through a program chartered by the state.
Major storms that have impacted several states – including Texas – have led to this burgeoning crisis. In addition, legal claims against insurers have contributed to the problem. Some companies have ceased providing coverage to areas where hurricanes are prevalent, including the Lone Star State.
Current estimates say that the state-chartered program does not have the funds to pay all claims in full if there is another catastrophic event. With more property owners using this type of coverage, it strains it further making it likely that there will be a shortfall if there is a mass of claims. Both Louisiana and Florida have had this happen.
Texas’ program was put in place more than 50 years ago. With a greater number of people using it for coverage, it has become clear that it could face the same fate as similar exchanges in other states.
HOAs and property owners facing insurance disputes should have assistance
Texas has seen its share of natural disasters in the past several years from ice storms to hurricanes. This has done extensive damage and left property owners and HOAs needing insurance payouts to repair damage, cover lost property and rebuild.
When insurance problems arise or any other HOA-related obstacle comes up, it is imperative to have legal guidance that specifically handles these cases.