A spokesman for Citizens, Rocky Scott, said the attorneys for citizens became concerned at that point because they could not find statutory authority to provide the coverage, so the insurer's board voted to end the program.

Mr. Gallagher, in his letter last Friday to board Chairman G. Bruce Douglas, said by removing the coverage, "many projects would be jeopardized and the impact to local communities and businesses could be devastating." The board decision today, he said, means workers can stay on the job "and our economy can continue to grow."

Citizens carries about 6,000 builder's risk policies that cover some $4.5 billion in property under construction.

Mr. Scott said that in addition to a unanimous decision to extend the coverage to Dec. 31, the board has decided "there will be increases in premiums for new and expiring policies.

He noted that builders have been able to get all-perils coverage, but the windstorm protection was only available through surplus lines insurers that take the risk at huge cost. Mr. Scott mentioned that for one project the premium price quoted was $400,000.

The partnership announced by New York-based specialty insurer Praetorian Financial Group, and broker Britt Paulk of Carrolton, Ga., will provide windstorm coverage, according to spokesman Ansi Valens, and will involve careful underwriting to limit the coverage to good risks, quality builders and superior construction.

Ultimately, Praetorian said, the new program will cover both commercial and large residential construction projects nationally, except in Hawaii.

Mike Pilla, chief underwriting officer at Britt Paulk, said Praetorian is an "ideal partner" because of its excellent financial strength and underwriting experience.

Praetorian, which has over $2 Billion in annual premium revenue, is a member of the Hannover Re Group.