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$189 Million Settlement Reached in Slab Litigation

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Galveston, TX: Hurricane Ike hit the shores of Galveston County on September 13, 2008, reducing hundreds of homes and businesses to nothing but foundations. Ensuing litigation between homeowners and the Texas Windstorm Insurance Association came to be known, appropriately enough, as 'slab' cases.

After more than two years of litigation the parties have now reached a $189 million settlement.

Texas Windstorm is Galveston County's biggest property insurer and underwrites many (if not most) of the homeowners' policies for windstorm damage caused by Hurricane Ike. Texas Windstorm says its policies cover loss caused directly by wind - and do not include coverage for loss caused by flooding.

The $189 million settlement includes homeowners represented individually and those as part of a class action. Texas Windstorm states that its offer is the same for all homeowners, whether individually represented or as part of the class action.

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