Texas Windstorm Insurance Association (TWIA) policyholders will see a 5% increase in rates reflected on new and renewal windstorm policies effective January 1, 2022. Current TWIA policyholders will begin receiving renewal notices reflecting the new rates by mail on November 1, 2021. This is the first TWIA rate increase to go into effect since 2018.
The rate increase was approved by the TWIA Board of Directors in a 5 to 3 vote at its August meeting and applies to both residential and commercial policies. The vote followed the Board receiving a recommendation for a 5% increase from TWIA’s Actuarial & Underwriting Committee. The Board also heard public comments from stakeholders including elected officials and other coastal community members. TWIA’s 2021 Rate Adequacy Analysis, prepared by the Association’s actuarial staff, indicates that TWIA’s current rates are inadequate by 39 percent for residential coverage and 46 percent for commercial coverage.
In addition to the rate increase, individual policy premiums may change due to other factors including the amount of insurance coverage and deductible amount selected, changes made to the property since the last renewal, and any optional additional coverages. TWIA encourages policyholders to contact their agent and discuss coverage options that can affect premium.
Created by the Texas Legislature, TWIA is the insurer of last resort for wind and hail coverage in the 14 coastal counties of Texas (and part of Harris County). In order to be eligible for a TWIA policy, applicants and properties must have been denied coverage by at least one insurer in the private market and meet other eligibility criteria defined by statute.
