The Texas Windstorm Insurance Association’s board has voted to direct staff to file a rate increase of 5 percent for residential and commercial policies for coastal counties.
TWIA is the association that manages the state windstorm insurance pool. Policies are only available for coastal counties vulnerable to hurricane or tropical storm winds.
If approved by the Texas Department of Insurance, the new rates will go into effect Jan. 1, 2022, and mean an average increase for residential policyholders of around $85.
The TWIA board also approved seeking to raise liability limits for coverage for both residential and commercial policyholders.
The new ceilings, if approved, would increase dwellings and individually owned townhouses from a maximum liability of $1,773,000 to $2,0376,000, a 14.9 percent increase; would raise the top rate for manufactured homes from $84,000 to $96,600, an increase of 15 percent; would increase liability rates for contents of an apartment, townhouse or condominium from $374,000 to $426,000, an increase of 13.9 percent; and increase the ceiling on commercial structures and related content from $4,424,000 to $4,927,000, an 11.4 percent increase.
TWIA officials said its 2021 Rate Adequacy Analysis, prepared by the association’s actuarial staff, indicates TWIA’s current rates are inadequate by 39 percent for residential coverage and 46 percent for commercial coverage.
The filing with TDI by law must be made prior to Aug. 15.
TWIA policies are available to residents and businesses in 15 coastal Texas counties, from Jefferson in the north to Willacy and Cameron in the south.
