A Corpus Christi man has sued the Texas Windstorm Insurance Association to assess insurance companies $600 million for costs he says the agency improperly passed on to policyholders like him. Ramiro Gamboa filed the lawsuit Monday in Travis County.
The association was formed in 1971 after property insurers quit doing business in coastal parts of Texas because of expensive devastation from Hurricane Celia a year earlier. It now operates as a “pool” of all property insurers in Texas and forces them to cover extraordinary damages in cases of major disaster.
Corpus Christ city officials said this week that should Gamboa win the lawsuit, it would double the agency’s cash reserves and potentially stave off rate hikes.