Windstorm Insurance in Texas and the TWIA

Windstorm insurance isn't required by the State of Texas, but you may need coverage to qualify for a mortgage if you live in a high-risk county. For example, you should consider it if you live near the coast, as most homeowners insurance policies exclude wind, hail and similar hurricane damage.

You can purchase windstorm insurance from private companies or 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, or coverage may be denied.

How does windstorm insurance work in Texas?

Windstorm insurance generally covers direct damage to your home and property caused by wind or hail. It may also provide loss-of-use coverage, also called additional-living-expenses coverage. This helps cover expenses if you can't live in your home for a period of time, due to wind or hail damage.

Wind and hail insurance policies have a deductible — the amount you'll pay for damage before the company provides coverage. Your deductible may be either a flat dollar amount or a percentage of the policy's dwelling coverage limit. While windstorm insurance is sometimes referred to as hurricane insurance, certain hurricane damage may not be covered by a wind policy. For example, windstorm insurance doesn't cover storm surge or flood damage, so you'll need a separate flood insurance policy for protection.

Some private insurance companies offer wind and hail insurance policies, but Texas residents who've been rejected by at least one other company also have access to TWIA coverage. The TWIA is essentially a last resort and available to help ensure you can buy 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 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 mandatory, consider it if your house is in a high-risk region, as direct damage from wind, hail and hurricanes is likely excluded from your home insurance policy.

The Texas counties considered at risk for hurricanes and windstorms — and where TWIA coverage is offered — are concentrated on the Gulf Coast and include:

If you live in a high-risk county and are considering windstorm insurance, you should get coverage sooner rather than later. TWIA insurance policies can't be bought or changed once a hurricane enters the Gulf of Mexico.

TWIA insurance

The TWIA offers residual market property 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).

The TWIA doesn't have its own agents, but you can generally buy coverage from the company 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 windstorm certification requirements.

Who qualifies for TWIA insurance?

TWIA insurance is available to residents of high-risk counties (currently the 15 listed above) for wind and hurricane damage. However, there are several other criteria you need to meet ito 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 cover 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 added to your policy and meet certain requirements.

With TWIA insurance, you can get either an actual cash value or replacement value policy, for both your dwelling and contents. Buy a replacement value policy, if possible, as you'll receive the full amount needed to replace damaged property if you make a claim. An actual cash value policy, on the other hand, takes depreciation 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, the TWIA considers the windstorm policy to be a replacement cost policy. But if your dwelling coverage is lower than 80%, 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. A higher deductible means lower premiums, because you'd 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 location, building code compliance and deductible.

When requesting a windstorm insurance quote from any company, you should know if your house meets windstorm resistant construction standards or the higher International Residential Code (IRC) standards. The standards have different categories, such as for seaward properties or inland properties. If your home meets these qualifications, your wind insurance rates may be much lower.

Filing a TWIA insurance claim

If you have a TWIA policy and need to file a claim, 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 through your insurance agent. Make sure to have your windstorm insurance policy number, your contact information, and details of the damage on hand when filing the claim.

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

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

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

You'll need a Texas windstorm certificate of compliance — WPI-8 or WPI-8-C — to buy TWIA insurance for your house. The TDI determines and issues documents certifying your house meets the state's windstorm requirements.

Windstorm insurance inspections can only be made by the 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, you should obtain a TDI windstorm certificate, as it gives you the flexibility of buying TWIA insurance if necessary. You would need to request an inspection by a TDI inspector or TDI-appointed engineer through your contractor for the following types of construction:

The inspection is free, and given that your house is ineligible for TWIA coverage if it's not certified, you should make sure all construction is compliant with TWIA requirements. Compliance certificates aren't necessarily required by other insurance companies, but the TWIA exists to provide coverage if you're rejected elsewhere, so getting a certificate gives you more options.

Certification can also improve the resale value of your house, as future 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. Some of those companies include: