During a recent government meeting, Representative Smith highlighted the severe impact of recent fires on the small town of Fridge, located between Emerald and Border. The community faced devastating losses, with several dozen homes destroyed, and a troubling statistic emerged: many of the affected families had no insurance coverage. Smith emphasized that the lack of affordable insurance options and the absence of the Terrorism Risk Insurance Act (TRIA) left these families vulnerable, resulting in homelessness for those who lost everything.

The discussion also touched on the broader implications of insurance costs in the Panhandle region. Smith pointed out that high insurance rates are exacerbated by the necessity for insurers to purchase reinsurance to cover potential claims from the Texas Windstorm Insurance Association (TWIA). He estimated that between 8% to 15% of the insurance rate base in the Panhandle is allocated to reinsurance costs, which contributes to the financial burden on residents.

Smith underscored the importance of recognizing that the challenges faced by the Panhandle are not isolated to coastal areas, asserting that every region of Texas, including the Valley, West Texas, and North Texas, deserves attention and support. He called for a comprehensive approach to address the insurance crisis, advocating for equitable solutions that consider the needs of all Texans.