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In the wake of Hurricanes Katrina and Rita, thousands of families turned to their insurance companies for help.  At least one company -- Allstate -- has turned their backs on their policyholders by engaging in abusive practices.  Texas Watch has helped bring to light a number of these abuses, leading to action by state regulators and the Attorney General. 

• Last month, Allstate Insurance Company was airing a false and deceptive ad that claimed that Texas families could lose their home if they did not carry sufficient auto insurance. As a result of Texas Watch pressure, the Texas Attorney General issued a "cease and desist" letter to Allstate, forcing the company to take the ad off the air.
  
• The Mississippi Attorney General has taken Allstate to court for abusive claims handling following Hurricane Katrina.  This prompted Texas Watch to encourage Texans to prepare their insurance documents in advance of a catastrophic event and we established the Rita Insurance Hotline to serve as a clearinghouse for insurance complaints.
  
• A district court judge issued a temporary restraining order against Allstate after Texas Watch activists and others affected by Hurricane Rita filed complaints at the insurance department.  The company has been unfairly denying claims for families that have been displaced by Rita.

 
 
The insurance companies and special interests have teams of lobbyists and multi-million dollar advertising budgets to get their message out.  At Texas Watch, we rely on a much more powerful tool -- accountability. 

From insurance abuse and patient safety to irresponsible homebuilders and makers of dangerous drugs, we fight for Texas families who have been harmed by a wrongdoer.  Here are some recent examples where Texas Watch stood up to the special interests: 

• Homebuilders have been able to escape responsibility because of legislation passed in 2003 that forces homeowners into a lengthy and expensive bureaucratic maze that is tilted in favor of homebuilders.  Texas Watch is shining the light on this special interest giveaway.
  
• After a jury in Angleton held the makers of Vioxx responsible for killing a Texas man, Texas Watch told the other side of the Vioxx verdict by demonstrating how Texas law allows makers of dangerous drugs to escape real accountability even when a citizen jury decides they are at fault.
  
• Lawmakers dissolved the state Office of Patient Protection after just 2 years.  Given the restrictions on patients’ legal rights, this small state agency was vital for patients who have been harmed by an irresponsible doctor or hospital.  Texas Watch has been talking with reporters and editorial boards about the importance of an independent ombudsman for Texas patients.  We will be working with lawmakers to re-instate this important state office.

 
In the wake of Hurricanes Katrina and Rita, homeowners should take a moment to review their insurance coverage so that they will be prepared if they are forced to file an insurance claim after a catastrophic event. 

Evaluate your insurance coverage to ensure you are adequately covered if a hurricane, tornado, windstorm, flood, or hail storm were to devastate your home and property. 

Texas Watch recommends that Texas families take the following actions:

• Inventory Your Home.  Homeowners should take a comprehensive household inventory so that they have a record of their personal belongings.  Homeowners should at least have a paper inventory stored in a safe place.  Texas Watch recommends also making a photographic or video record.
  
• Check Your Policy.  Periodically, homeowners should review their insurance policy to be sure that they have adequate coverage to protect them in the event of a catastrophic claim, paying particular attention to the exclusions written into their policy.
  
• Talk With Your Agent.  Homeowners should visit with their agent or customer service representative to ensure that their policy is designed to fit their needs.  Homeowners should be sure that their deductible is appropriate and their coverage is sufficient so that they are not bankrupted in the event of a major catastrophe.
  
• Check into Flood and Windstorm Insurance.(  Homeowners in flood prone areas should purchase federal flood insurance protection through the National Flood Insurance Program http://www.floodsmart.gov/; 1-800-427-4661).  Coastal residents who are susceptible to serious windstorms should visit with their agent about windstorm protection either through their insurer or the Texas Windstorm Insurance Association (http://www.twia.org/). 

Texas Watch has a 5-step resource guide to assist homeowners as they are shopping for their insurance.  Texas Watch’s “Make the Market Work” guide can be found at www.TexasWatch.org or by calling Texas Watch at 1-888-738-4226.