HOUSTON -- State regulators are considering a 10 percent hike in windstorm insurance for hundreds of thousand of homeowners along the coast. The Texas Insurance Commissioner heard from some of them in Austin Tuesday, KPRC Local 2 reported.

"I come to Austin, Texas, and hear everybody say, 'That's only $100 more a year.' A hundred dollars is a lot of money to people on Social Security -- people that are on fixed income," said Henry Freudenburg, former Galveston mayor.

About 200,000 property owners in 14 counties rely on the Texas Windstorm Insurance Association for coverage. It's a state-run pool and known as the insurer of last resort.

More and more property owners are being forced to use it as private insurance companies refuse to cover them. They are anxious to avoid losses like those caused by Hurricanes Katrina, Rita, and most recently Humberto.

That's putting a strain on the TWA's resources.

The fund currently insures about $58 billion worth of property, but only has a little more than $1 billion in reserves.

"The real issues are real simple. Does TWA have sufficient reserves to pay potential losses? The answer is no, we do not," said Jim Oliver with the Texas Windstorm Insurance Association.

"This is not the fault of the policy holder. They shouldn't have to pay extra cause their previous carrier abandoned them and kept last year's profits," said Lee Otis Zapp Jr. with the Galveston Windstorm Action Committee.

The insurance industry backs the rate hike. A decision will come before the end of November. But it's likely to eventually end up with the legislature.