Windstorm Insurance in Texas and the TWIA

Windstorm insurance isn't required by the state of Texas, but you may need to purchase coverage to qualify for a mortgage if you live in a high-risk county. Windstorm insurance is also a good consideration if you live near the coast, as most homeowners insurance policies exclude coverage from wind, hail and similar hurricane damages.

You can purchase windstorm insurance from private insurers or from the Texas Windstorm Insurance Association (TWIA) if you've been rejected from at least one other company. However, it's important that your house meets windstorm certification requirements, otherwise you may be rejected for coverage.

How does windstorm insurance work in Texas?

Windstorm insurance generally covers direct damage to your home and property that's caused by wind and hail. A wind insurance policy may also provide loss of use coverage, also called additional living expense coverage, if you can't reside in your home for a period of time due to wind or hail damage.

Wind and hail insurance policies have a deductible—the amount of money you'd pay out of pocket for damage before the insurer provides coverage. Your deductible may be either a flat dollar amount or a percentage of the policy's dwelling coverage limit. For example, if you have a 1% deductible and $100,000 of dwelling coverage, your deductible would be $1,000.

While windstorm insurance is sometimes referred to as hurricane insurance, certain hurricane damage may not be covered by a wind insurance policy. For example, windstorm insurance policies don't cover storm surge or flood damage, so you'll need a separate flood insurance policy to provide protection.

Some private insurers offer wind and hail insurance policies, but Texas residents also have access to TWIA coverage if they have been rejected by other insurers. The TWIA is essentially an "insurer of last resort" and is available to help ensure you can purchase coverage for your property and be financially protected, even if you live in a high-risk area.

Do you need windstorm insurance in Texas?

Windstorm insurance, also called wind and hail insurance, isn't required by the state of Texas, but it will likely be required by your mortgage lender if you live in a high-risk area. But even if it's not required, we recommend you consider windstorm insurance if your house is located in a high-risk region, as direct damage from wind, hail and hurricanes are likely excluded from your home insurance policy.

The Texas counties considered at risk for hurricanes and windstorms, and in which TWIA insurance is offered, are concentrated on the Gulf Coast and include:

If you live in a high-risk county and are considering windstorm insurance, we recommend obtaining coverage sooner rather than later. TWIA insurance policies can't be purchased or changed between the time a hurricane enters the Gulf of Mexico until it has made landfall and cleared the area.

TWIA insurance

The TWIA is a residual market property insurer that offers coverage to Texas homeowners who have been rejected for wind and hail insurance elsewhere. The organization is overseen by the Texas Department of Insurance (TDI).

While the TWIA doesn't have its own agents, you can generally purchase coverage through the insurer you use for homeowners insurance or another insurance agent in Texas. Though TWIA insurance is meant to ensure all homeowners have access to coverage, you may be rejected for a policy if your house doesn't meet certain windstorm certification requirements.

Who qualifies for TWIA insurance?

TWIA insurance is available to residents of high-risk counties for wind and hurricane damage, which are listed above. However, there are several other criteria you need to meet in order to qualify for Texas Windstorm Insurance Association coverage.

What does TWIA insurance cover?

TWIA windstorm insurance covers damage from wind and hail, but no other perils. A policy can provide coverage for your residence, personal property and certain items on your property, such as a fence or swimming pool. TWIA policies can include the following forms of coverage, depending on your needs:

Certain types of property are specifically excluded from TWIA policies, such as:

Some of these items can be insured, but they would need to be specifically added to your policy and meet certain requirements.

With TWIA insurance, you can either get an actual cash value or replacement value policy, and this option is available for both your dwelling and contents coverages. We recommend purchasing a replacement cost policy if possible, as you'll receive the full dollar amount needed to replace damaged property if you make a claim. An actual cash value policy, on the other hand, takes depreciation of the property into account, so your payout will be lower for the same damages.

If your dwelling coverage is at least 80% of the estimated cost to rebuild your house, TWIA considers the windstorm policy to be a replacement cost policy. But if your dwelling coverage is lower than 80% of the cost to build your home, depreciation will be taken into account if you file a claim.

TWIA wind insurance policies also come with a deductible, which you would pay out of pocket before the policy pays for repairs. If you select a larger deductible, your premiums will be lower, as you pay for a larger amount of the damage yourself. You can choose a TWIA insurance deductible of:

TWIA windstorm insurance rates

The average cost of windstorm insurance from the TWIA is $1,587 per year, but you may be eligible for lower rates depending on where your house is located, your home's building code compliance and the size of your deductible.

When requesting a windstorm insurance quote from any insurer, you should know if your house meets windstorm resistant construction standards or the higher International Residential Building Code standards. The standards have different categories, such as meeting the standard for Seaward properties or Inland I properties. If your home meets these qualifications, your wind insurance rates may be significantly lower.

Filing a TWIA insurance claim

If you have a TWIA policy and need to file a claim, then it's important to do so quickly after your property has been damaged. You have just one year from the time of wind or hail damage to file a windstorm coverage claim, and two years to file an ICC coverage claim. A TWIA claim can be filed online, by phone or by contacting your insurance agent. Make sure to have your windstorm insurance policy number, contact information, and details of the damage on hand in order to file the claim.

Here are some tips to keep in mind when your property's been damaged.

Once you've filed a claim, TWIA will call you to confirm and assign a representative to the claim. Then it has 60 days to reject the claim, accept partial coverage for the claim or accept full coverage for the claim. You can check the claim's status online, through TWIA's claims center, or by phone. If the claim is accepted, it will be paid in about 10 days. Should you want to dispute the claim assessment, you'll need to do so within two years.

TWIA windstorm certification: WPI-8 and WPI-8-C

To purchase TWIA insurance, you'll need a Texas windstorm certificate of compliance for your house—either a WPI-8 or WPI-8-C form. TDI determines and issues windstorm certification documents, confirming that your house meets the state's windstorm requirements.

Windstorm insurance inspections can only be made by TDI during construction, so if you're purchasing a home, you should ask the previous owners for a copy of their certificate. You may also be able to locate an existing certificate by contacting the TWIA or searching for a WPI-8 on the TDI's website.

If you're planning construction on your property, we recommend that you obtain a TDI windstorm certificate, as it gives you the flexibility of purchasing TWIA insurance if you need to do so. You would request an inspection by a TDI inspector or TDI-appointed engineer through your contractor for any of the following types of construction:

An inspection is free, and given that your house is ineligible for TWIA coverage if not certified, we strongly recommend you ensure all construction is compliant with TWIA requirements. Compliance certificates aren't necessarily required by other insurers, but the TWIA exists to provide coverage if you're rejected elsewhere at some point, so getting a certificate gives you more options as a homeowner.

Certification can improve the resale value of your house if you choose to sell in the future, as other owners would similarly be disqualified from TWIA coverage without a certificate.

Windstorm insurance companies in Texas

In addition to the TWIA, a number of companies in Texas offer windstorm insurance to coastal homeowners. If you're unable to get wind and hail insurance from your homeowners insurance company, you may want to compare quotes from some of the following insurers as alternatives to the TWIA.