Alternatives to Texas Windstorm Insurance: Top Picks & Tips

In the wake of the Texas Windstorm Insurance Association (TWIA) Board of Directors' decision to approve a 10 percent rate increase for all new and policy renewals for both residential and commercial properties, many homeowners and commercial property owners along the Gulf Coast are seeking alternatives to Texas windstorm insurance. This rate increase, set to impact policyholders starting January 1, has sparked a significant amount of concern among those who rely on TWIA for their windstorm insurance coverage. The Texas Department of Insurance must give its approval before the rate increase can be implemented, adding another layer of uncertainty for property owners in the region.

Insurance agent Ed Cantu has mentioned the possibility of an additional 4 percent increase for cost of living adjustments, although this is not currently being proposed by TWIA or considered by the Texas Department of Insurance (TDI). This potential increase further exacerbates the financial strain on Gulf Coast property owners, making the search for alternatives to Texas windstorm insurance even more pressing. Additionally, TWIA's decision to file for an increase to its maximum liability limits, as required annually by Texas law, does not directly affect policyholder premiums but does highlight the ongoing adjustments and changes within the windstorm insurance landscape in Texas.

Following Hurricane Harvey, TWIA received over 76,000 claims, with total paid losses estimated at $1.61 billion. This catastrophic event not only underscored the critical need for windstorm insurance in the region but also put a spotlight on the financial challenges faced by TWIA in meeting these claims. For the 2017 hurricane season, TWIA secured $4.9 billion in funding and utilized the total amount available in their Catastrophe Reserve Trust Fund for Harvey claims. The subsequent season saw TWIA securing $4.6 billion in funding, demonstrating the organization's efforts to prepare for future storms despite the financial pressures.

With the average residential policy with TWIA currently costing $1,500 annually, many are looking for alternatives to Texas windstorm insurance that offer more affordable rates without compromising on coverage. Alternative insurance companies such as Velocity, Weston Insurance, the Woodlands, and Maison Insurance have emerged as viable options, offering windstorm insurance at rates potentially 15 percent lower than TWIA's. These companies adjust rates based on location, potentially offering even lower rates for homes further from the Gulf, providing a glimmer of hope for those seeking more affordable windstorm insurance solutions.

It's important to note that TWIA serves as an insurer of last resort for those in coastal counties who cannot purchase insurance in the private market. This role underscores the importance of TWIA in the Texas insurance landscape, even as property owners explore alternatives to Texas windstorm insurance. For those navigating the complexities of windstorm insurance in the Gulf Coast region, resources such as http://www.smartwindstorminsurance.com/ offer valuable information and guidance. As the situation continues to evolve, staying informed and exploring all available options will be key for Gulf Coast property owners seeking to protect their properties against the devastating impact of hurricanes and other wind-related disasters.