Insurance company goes bankrupt, leaves Bridge City family helpless

Long delays, under-paying and flat out denials... all common complaints from hurricane victims about their insurance companies.  What about bankruptcy?  That's the latest struggle one Bridge City family is facing.

"It doesn't look so bad, but when they start pulling stuff out, what are they gonna find?"

During Hurricane Ike, Dawn Dugas' Bridge City home handled the storm differently than the rest of the community.  'Her' problems went from 'top', to 'bottom'.

She said, "I got extensive water damage coming in from the roof, wind and water damage."

Dugas says a tornado tore off the front part of her roof... every hole you see invited rain water into all four of her children's bedrooms... now they all stay in 'her' room.

"Ceilings, walls and floors, all the furniture was messed up and then it came down on the first floor and damaged all the rooms downstairs as well," said Dugas.

Although inconvenient, Dugas says she wasn't worried about repairing the damage. She had homeowners' insurance with Austin Indemnity Lloyds Insurance Company. But as the months went by, Dugas says the company delayed her claim, then sent a few checks. But those checks bounced, and in December, she found out why.

"I found out that the company was insolvent, which is basically bankrupt," she said, "You hear the 'Big Three' insurance companies so you wanna go with guys that are a little smaller, maybe that have some personal communication with you and I just don't know what happened to them."

Since then, Dugas has found frustration when searching for what to do next, all the while making minor repairs out-of-pocket, and trying to keep the house of six, safe.

"I maintained my homeowners insurance, I always paid my bills and when they were supposed to come through for me, I have been left out in the cold."

The Texas Department of Insurance says there is an organization in place to help policy holders whose insurance company fails.  The Texas Property and Casualty Insurance Guaranty Association can be contacted at 512-345-9335.