City sues insurer for $13million – gets nothing

Insurer argued that the complainant did not file proper claims and proper documentation of damage

City sues insurer for $13million – gets nothing

Catastrophe & Flood

By Allie Sanchez

The First Court of Appeals in Texas upheld a take-nothing jury ruling in a case filed by League City against insurer Texas Windstorm Insurance Association (TWIA) in 2012.

League City claimed that the firm did not pay for damages to its buildings sustained during Hurricane Ike in 2008.

Hurricane Ike hit Texas as a Category 2 hurricane and caused billions of dollars in damage across the state and the Gulf Coast.

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According to an SE TexasRecord report, the jury ruled in favour of the city, saying TWIA violated policy provisions and failed to adhere to the Texas Insurance Code. However, it also found in favor of the company on the grounds that the city did not provide proper notice of damage or documentation of repair expenses. As a result, the $13 million suit ended up in a take-nothing decision.

The report also said that TWIA did make a $750,000 payout for claims filed by League City in the aftermath of Hurricane Ike. However, the city filed the suit almost four years later and without prior notice to settle allegedly unprocessed claims.


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