1995-03-20 Special Called Regular Meeting

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MARCH 10, 1995 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CHARLES HARRINGTON, DIRECTOR OF PLANNING SUBJECT: CATPOOL INSURANCE On December 14, 1994, the Texas Department of Insurance held a public hearing in LaPorte on a request by the City of Seabrook regarding a special insurance program known as Catpool. This program, operated by the Texas Catastrophe Property Insurance Association (TCPIA), provides windstorm and hail coverage on qualified property when coastal residents cannot fmd it through the regular market. In its petition to the Insurance Department, Seabrook spoke of the many problems that their residents were facing in fmding insurance to cover their homes during hurricanes. As this affected other cities, the Cities of LaPorte, Shoreacres, Morgan's Point, Nassau Bay, El Lago, Taylor Lake Village, Webster and Baytown were also invited to speak in the public hearing. During that hearing, I testified of several occasions where residents of LaPorte east of S.H. 146 had been unable to obtain windstorm coverage through their normal insurer and were forced to go through a secondary market to obtain their coverage at a much higher rate. I also testified how the lack of coverage impacted the redevelopment of the bay area and could in effect eliminate any hope of ever achieving our Bayfront Master Plan. Following that hearing, LaPorte was contacted by the Texas Department of Insurance regarding our concerns and whether or not LaPorte would like to be included as a part of Seabrook's petition. Subsequently, Bob Herrera and I met with three insurance agents representing major companies as well as an independent agent. We discussed the issue with them and determined that for the citizens of LaPorte to be adequately served now and in the future, that inclusion in the Catpool would become a necessity. As a result of our investigations and the meeting with the insurance agents, the staff would now recommend that the Council consider joining the petition of Seabrook to be included in the Catpool Insurance Program. CRH:kcg