Eleven thousand residents of coastal Texas may be looking for a new homeowners insurance carrier, according to a report in the Houston Chronicle (" 11,000 State Farm customers left high and dry," by Dan Wallach). "State Farm said it will not renew regular homeowner policies - aside from windstorm coverage - affecting 11,000 customers in parts of Orange, Jefferson, Chambers, Galveston and Brazoria counties after May 1," the paper reports. State Farm did not give a detailed reason for its decision, but said through a spokesman, "We must strike a balance between our exposure and our ability to pay claims." Reports the Chronicle, "A Texas Department of Insurance spokesman said State Farm has notified the agency of its intent to non-renew a portion of its coastal Texas business over the next 12 months. Some policyholders are not pleased, reports Houston TV station KTRK (" State Farm nixing policies to some coastal communities," by Jeff Ehling. Nineteen-year State Farm customer John Hudspeth told the station, "I feel like I'm being ripped off, I feel like this is another case of the American, hardworking people being ripped off by a giant corporation." And Hudspeth says he's left wondering why the national company would decide to terminate his policy; besides the fact that the home lies nine miles inland from the Gulf of Mexico, he says, Texas Windstorm, the state's high-risk pool insurer of last resort, covers his house against hurricane wind damage, while the federally backed National Flood Insurance Program covers it for water damage.
