By Sherry Koonce

The News staff writer

Citing catastrophic losses, including those from Hurricane Ike, the Texas Department of Insurance granted a rate increase for the Texas Windstorm Insurance Association, the state’s insurer of last resort for windstorm coverage.

Homeowners insured through the state’s windstorm insurance association, will pay an additional 12. 3 percent, while commercial policyholders will see a 15.6 percent. The rate changes begin Feb. 1 at the time of the policy’s renewal.

For Ester Benoit, the rate increase will make a hardship caused by Ike, even harder.

Benoit hasn’t reopened her seafood restaurant under the Rainbow Bridge since Hurricane Ike washed ashore two months ago. She’s waiting on an insurance settlement, while her employees wait on their jobs.

Now, she’s learned the cost of insurance is going up — possibly before she serves her first plate of fried shrimp from a remodeled building.

“This is not good news at all. Insurance was so high anyway, and now it’s going to be more expensive. This is going to be tough for business owners,” Benoit said.

And, that’s just the commercial end.

Business owners who have windstorm coverage through the state, could be hit twice if their homeowner coverage is also written by the state association.

“A double whammy,” Benoit said.

Port Arthur City Commissioner Martin Flood, who owns a construction business, said he expected an increase because of the storms, but was not prepared for one so large.

“I thought it would be 2 or 3 percent. That’s an increase, but this is a quantum leap,” Flood said.

The rate increases are part of a long-term goal to build the windstorm association’s strength, Mike Geeslin, Texas Department of Insurance Commissioner, said in a press release issued Monday.