What Does TWIA Insurance Cost and What Does It Cover?

The average premium on a TWIA residential policy is approximately $2,000 (as of 6/30/2023).  To get the lowest rate your agent needs to check all factors and discounts like the WPI-8 certificate discount.

The Texas Windstorm Insurance Association (TWIA) was established in 1971 to provide windstorm and hail insurance for Texas Gulf Coast property owners in the event that private insurers withdrew or limited coverage in high-risk areas.

TWIA’s primary purpose was to ensure that those living in certain coastal areas could obtain insurance coverage against the perils of windstorm damage, especially in the wake of hurricanes.

Here’s what the TWIA covers:

1. Windstorm and Hail Damage: TWIA offers coverage for damages resulting from windstorms, such as hurricanes or tropical storms, and from hail events. This includes damage to buildings, personal property, and other structures on the insured property.
2. Structures Covered: This includes dwellings, associated structures (like garages), and business properties. It can also cover contents, depending on the policy specifics.
3. Additional Coverages: Depending on the policy, additional coverages may be provided for things like debris removal, increased cost of construction to meet current building codes, and reasonable expenses incurred to protect property from further damage after a windstorm event.
4. Exclusions: Like all insurance policies, the TWIA policy has exclusions. Some damages, even if they result from a windstorm, might not be covered. It’s essential to understand these exclusions when purchasing coverage.
5. TWIA and Flood Insurance: It’s crucial to note that TWIA does not provide flood insurance, even if the flood results from a storm surge associated with a hurricane. Property owners in flood-prone areas should consider purchasing a separate flood insurance policy, often available through the National Flood Insurance Program (NFIP).
6. Availability: TWIA insurance is available only for properties located in certain designated portions of the Texas Gulf Coast. This typically includes 14 coastal counties and parts of Harris County (Houston area).

The cost of TWIA coverage varies based on several factors, including the property’s location, its value, construction details (e.g., building materials, age), and the specific coverages and deductibles selected by the property owner.

Property owners interested in obtaining TWIA coverage or wanting to know the exact cost should reach out to a licensed insurance agent in Texas familiar with TWIA policies.