Texas windstorm insurance: How it works and who needs it
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Windstorm insurance for Texas homeowners
If you live along the Gulf Coast of Texas, it’s likely that your home insurance policy does not include wind coverage. Without a separate Texas windstorm insurance policy, you would be on the hook for any wind, hail, tornado or hurricane damage. You can purchase wind insurance through a private insurance provider. However, if you’ve been denied, you can apply for TWIA insurance.
TWIA insurance is often required by lenders for homes that are located in Tier 1 counties, where windstorm risks are higher. If your home is in a Tier 2 county, your wind risk is slightly lower, but it is still possible that your lender will require you to carry a wind insurance policy.
| Tier 1 counties | Tier 2 counties |
|---|---|
| Aransas | Bee |
| Brazoria | Brooks |
| Calhoun | Fort Bend |
| Cameron | Goliad |
| Chambers | Hardin |
| Galveston | Harris |
| Harris (east of Highway 146) | Hidalgo |
| Jefferson | Jackson |
| Kenedy | Jim Wells |
| Kleberg | Liberty |
| Matagorda | Live Oak |
| Nueces | Orange |
| Refugio | Victoria |
| San Patricio | Wharton |
| Willacy |
TWIA application requirements
Not every Texas home qualifies for a TWIA insurance policy. Much like the Fair Access to Insurance Requirements Plan (or FAIR Plan), TWIA is an insurance option of last resort. To get a policy, you must:
- Live in a Tier 1 or Tier 2 county. These are counties along the Gulf Coast that have a lengthy history of hurricane damage.
- Get your home certified by the Texas Department of Insurance. Your home must have a TWIA Windstorm Certification of Compliance and be up to current building codes. You can check the Texas Department of Insurance’s Windstorm Search to see if your home already has a certificate or apply for a new one through the department.
- Carry a National Flood Insurance Program (NFIP) flood policy (if in a high-risk flood zone). The NFIP flood insurance requirement only applies to homes built after August 31, 2009, in flood zones V, VE or V1-30.
- Show proof of insurance denial. You’ll need to provide proof that you’ve been denied wind coverage from a private provider at least once.
Your home must also be in what the TWIA deems “insurable” condition. Per the TWIA website, this means that the home is in good shape. If your home is damaged or in need of major repairs, your TWIA wind insurance application could be denied.
Is a separate Texas windstorm insurance policy mandatory?
In Texas, there is no law that mandates homeowners must hold a separate windstorm insurance policy. However, some lenders may require you to maintain Texas windstorm insurance for the duration of your mortgage if you live in a Tier 1 or Tier 2 high-risk wind county.
Where to get windstorm insurance in Texas
TWIA insurance is sold through private providers, not directly through the TWIA. All licensed home insurance companies in Texas are required to be members of the TWIA. These insurers wrote and serviced the most TWIA policies in 2023:
The TWIA isn’t the only option Texas homeowners have for wind insurance; private wind insurance is also available. Remember, to apply for a TWIA policy, you must first demonstrate that you’ve been rejected by a private provider. These policies are underwritten by private companies, not the TWIA, and may have more policy flexibility and cheaper prices.
- Aegis Security Insurance Company
- Cypress Property & Casualty Insurance Company
- Ocean Harbor Casualty Insurance Company
- SafePoint Insurance
- Southern Vanguard Insurance Company
- Spinnaker Insurance Company
- Wellington Insurance Group
Comparing quotes from the TWIA and from private providers can help hone in on the best windstorm insurance in Texas for your needs.
What if I can’t get a policy through the TWIA or a private provider?
Homeowners unable to secure a wind insurance policy through the TWIA or a private provider may need to default to Texas FAIR Plan for coverage. Generally, FAIR Plans cover less and cost more.
What does TWIA insurance cover?
Texas Windstorm Insurance Association insurance exclusively helps with costs related to damage from wind, hail and some hurricanes. Other perils, like fire and theft, would be covered by your home insurance policy. Floods and storm surges would fall under your flood insurance policy. TWIA claims are paid out on an actual cash value basis, but replacement cost value can be added by endorsement.
| Coverage name | What's covered | Included or add-on |
|---|---|---|
| Dwelling | Helps with the cost of repairing your home’s physical structure if it is damaged by wind or hail | Included |
| Other structures | Helps with the cost of repairing detached structures, like a gazebo or garage, if they are damaged by wind or hail | Included |
| Personal property | Helps with the cost of repairing or replacing belongings like clothes and furniture if they are damaged by wind or hail | Included |
| Debris removal | Helps with costs of clearing tree branches and other debris that result from wind or hail | Included |
| Emergency repairs | Helps with the cost of temporary or emergency repairs to your property to help prevent further damage | Included |
| Additional living expenses | An optional coverage that can help with food, lodging and other costs if you are displaced from your home due to wind or hail damage | Optional add-on |
| Increased cost of construction (ICC) | Helps if construction costs for your home are higher than your policy’s limits | Optional add-on |
How much does windstorm insurance cost in Texas?
Windstorm insurance rates in Texas vary. The average TWIA policy costs about $2,300 per year, but the rate is based on your home’s construction type, deductible and coverage amount, including optional coverage endorsements.
In 2023, the Texas Windstorm Insurance Association did not submit a request to raise rates. But in 2024, it filed for a 10 percent raise that would go into effect on January 1, 2025. If the rate raise is approved by the Texas Insurance Commissioner, the average cost of a TWIA insurance policy would go from $2,300 per year to $2,530. The Texas Department of Insurance is holding public meetings throughout September 2024 to discuss the potential rate rise.
However, a 2024 actuarial analysis shows that TWIA should raise residential policy rates by 38 percent and commercial policies by 45 percent to remain adequate. While the most recent rate filing was for 10 percent, TWIA policyholders may want to prepare for more rate increases in the years to come.
TWIA deductibles
A key part that determines the cost of any insurance policy (TWIA included) is the deductible. Like your standard home insurance policy, a higher deductible will usually result in a lower premium. Deductibles from the TWIA are calculated as percentages of your total dwelling limit, as opposed to flat dollar amounts. Typically, these deductibles range from 1 to 5 percent. So, if you had a policy with a $300,000 dwelling limit and 2 percent deductible, you are financially responsible for $6,000 of a potential wind insurance claim.
Frequently asked questions
