Over 100 Insurance Companies Suing ERCOT Over Winter Storm Losses
Looks like the February Freeze of 2021 is still ongoing with ERCOT.
Last year many residents here in Texas were left in the cold due to ERCOT shutting off the power. Obviously without power during a freeze, residents were not able to keep warm themselves, but also their property. This led to pipes bursting and other issues for many here in Texas. Insurance claims began piling up in the weeks after the freeze.
My friend in Dallas had a pipe burst in the condo above is. He just got back into his condo back in October due to so much damage and issues with the insurance company. According to the latest report from the Texas Department of Insurance, insurers indicated they had 500,196 insurance claims. It is reported that insurance companies are having to pay around 10.3 billion dollars due to the damage of the winter storm.
The lawsuit, filed in Travis County District Court, said the Electric Reliability Council of Texas (ERCOT) and 37 different power generating entities were “at fault” for the energy failure and power loss that left millions of Texans in the cold and dark for days. It alleges gross negligence when these defendants “failed to plan and prepare for the winter storm event, and the energy failure caused significant property damage to the policyholders of plaintiffs.”
This lawsuit could be big if the insurance companies were to win. Whatever your deductible was, if you had to use insurance for the winter storm damage, you could get that money back. This case could take months in court with all the different insurance companies involved in the case. We will wait to see what happens.