Texas Hailstorm: Insurance Delays Affect Repair Efforts

In the wake of a severe hailstorm in the Coastal Bend region of Texas, insurance processing delays are significantly impacting repair efforts. The storm, occurring in November, caused substantial damage to vehicles, homes, and commercial properties, thus increasing the workload for roofing and auto repair businesses. These AI-driven prior authorization delays are creating bottlenecks, particularly for contractors striving to meet regulatory compliance requirements for windstorm resistance standards.

Impact on Repair and Claims Management

Contractors, such as those from Crane Customs Roofing and Construction, attribute these delays to the Texas Windstorm Insurance Association (TWIA). Typically, insurers resolve claims within a week to ten days, but some requests remain unresolved for over 40 days. This delay complicates risk management and claims processing, with TWIA's unique protocol necessitating checks to be issued to homeowners, thereby prolonging repair and payment timelines. Despite completing 23 roof replacements, Crane Customs Roofing and Construction received full payment for only a fraction of their projects.

TWIA's Response and Recommendations

TWIA emphasizes its commitment to efficient claims resolution, aiming to issue payments within an average of 11 days. Some claims require detailed evaluations, potentially extending processing times. TWIA has paid over $61 million in claims, averaging $1.3 million per day, with the average residential claim amounting to $18,023. Experts like Matthew Tefike from TR3 Realty recommend researching insurers' past claim handling and utilizing independent insurance adjusters for accurate underwriting and entitlement evaluations. This strategy aids providers and payers in navigating the claims process more effectively, fostering quicker recovery within impacted communities.