TWIA Votes To Increase Rates For 2019

The Texas Windstorm Insurance Association board voted to raise residential and commercial property insurance rates by 10 percent…

The Texas Windstorm Insurance Association (TWIA) board voted to raise residential and commercial property insurance rates by 10 percent. As residents along the Texas Coastal Region continue recovering from Hurricane Harvey the move comes despite pleas from area leaders to not move forward with the increase.

If approved by the Texas Department of Insurance, the new rates would go into effect Jan. 1. Premiums may change based on changes in coverage, such as the amount of insurance provided by the policy.

The average premium on a TWIA residential policy is approximately $1,600. A 10 percent increase in 2019 will represent an actual dollar increase of around $160 per year for this policy.

The Texas Windstorm Insurance Association (TWIA or Association) was established in 1971 by the Texas Legislature to provide wind and hail coverage to applicants unable to obtain insurance in the private market.

The Legislature’s action was a response to market constrictions along the Texas coast after several hurricanes. TWIA is governed by Chapter 2210 of the Texas Insurance Code (Chapter 2210); however, it is not a state agency and does not receive funds from the general revenue.

TWIA policies provide coverage for residential and commercial property located within the area designated by the Commissioner of Insurance. This area currently includes all 14 first tier coastal counties and parts of Harris County east of Highway 146.

The specific counties are Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio and Willacy.

When the property is located inside the city limits and east of Highway 146, the following portions of Harris County are also included: La Porte, Morgan’s Point, Pasadena, Seabrook, and Shore Acres.

This story originally published on Strategic Partnerships, Inc.