|
Texas is known for big things and Texans have
a big sense of pride in their state. Unfortunately, the exposure
of the state to catastrophic storm damage is large, as well.
In 2005, it was Hurricane Rita. In 2001,
tropical storm Allison struck the Texas coast. Even without
reaching hurricane strength Allison caused more than $5 billion
in damages. The Hurricane of 1900 leveled the city of Galveston
and shifted the demographic distribution and business centers of
this state forever. Lubbock and Wichita Falls were ravaged by
massive tornados. In 2000, a tornado ripped through downtown
Fort Worth. In 1995, much of north Texas was devastated by a
hail storm. These natural disasters caused billions of dollars
worth of damage. And, not only is the size of the storms that
nature has visited upon Texas concerning, but an increasing
frequency has made insuring the property in this state so laden
with risks and the cost of re-insurance so high that few
private-market options are left to property owners seeking
coverage.
This lack of private market participation
has created a secondary problem by "chasing" property owners
into the state’s insurance pool of last resort – exposing the
state to a risk portfolio it was never anticipating.
Texans can and must do a better job of
preparing and protecting their citizens from natural disasters.
It is time for Texans to begin to take the
necessary steps to prepare their home or business for
catastrophe. Be it a tornado in North Texas, flooding in East
Texas, a hail storm in West Texas or a hurricane on the Gulf
Coast, Texans must be proactive, rather than waiting for the
next catastrophe to strike.
|
