What’s Up with the Wind (Hail and Hurricane)?

We are referring to the Wind, Hail and Hurricane protection normally included in your homeowner’s insurance policy. This valuable protection can be excluded on your home if it is located in a county that abuts the coast, such as Brazoria and Galveston counties.

Some insurance providers are adjusting the way they address this risk. One way is by excluding this coverage from new policies altogether.  Another is by dropping windstorm coverage when a policy renews.  This forces the homeowner to then seek protection for this risk through the Texas Windstorm Insurance Association (TWIA).

With this change in philosophy, we wanted to address some of the most common questions we receive from homeowners and mortgage companies.  These questions and answers provide an overview of how to protect one of your most valuable assets should you find you are in need of adequate windstorm protection.

Who is the TWIA?

The Texas Windstorm Insurance Association is a ‘pool’ of all property and casualty (P&C) insurance companies authorized to write coverage in Texas.

TWIA is neither a state organization, nor a for-profit company, and therefore does not seek to increase its market share.  They do not actively compete against private insurance providers. TWIA is the provider of “last resort.”

TWIA's purpose is to provide Texas citizens with adequate wind and hail coverage when it is not available in the insurance marketplace, and pay insured's claims when losses occur.

How do I secure coverage through Texas Windstorm Insurance Association?
An application for windstorm and hail coverage through Texas Windstorm Insurance Association must be submitted by a licensed property and casualty agent. The application must be on forms prescribed by the Association, and include premium payment, a current replacement cost estimate, and certification document WPI-8 (if required).  The dwelling must be insurable with regard to minimum acceptable maintenance standards, and as with all dwellings should reflect pride of ownership.

What is the significance of 1988 as it relates to obtaining coverage in the TWIA?

Homes built prior to 1988 are covered by a grandfather clause and are not required to obtain a WPI-8.   BUT, any modifications or alterations to the home, including a re-roof must be certified.

What is the significance of 1998 as it applies to building code credits? Homes built after 1998 that were constructed to or exceeding the standards of the Windstorm Resistant Construction (WRC) or International Residential Code (IRC) as modified by the Texas Department of Insurance shall qualify for Superior construction discounts. This can result is a premium savings of 26 percent on the dwelling and 20 percent on the personal property.  Note regarding homes built to Southern Standard Building Code (SSBC), these homes DO NOT qualify for this discount. The building standard is included on the WPI-8.

How can I determine if my home or roof is certified?

If your home was constructed after 1988 or if you have had your roof replaced and would like to determine if the certification (WPI-8) is available, the information can be found on the Texas Department of Insurance website (www.tdi.state.tx.us). Under the search column on the left side, select “Windstorm certificates”, then type in your address and county. If your home is certified it will be reflected and you can reprint your certificate.  

How would the Association know if my roof has been changed?

The TWIA contracts independent inspectors to inspect the majority of the homes submitted for coverage. A trained inspector can identify if a roof is less than 19 years old (2007 – 1988 = 19 years) Coverage will be terminated unless the appropriate certification is obtained by an approved inspector.

Can any home inspector complete the certification requirements?

No.   The inspector must be approved by the Texas Department of Insurance. A list of independent approved engineers is available on the TWIA website (www.TWIA.org).

Are any providers offering a complete package?

Preferred carriers in our area are limiting this coverage as part of their standard homeowner's policy.  FARMERS Insurance is writing wind, hail and hurricane in their Texas Family Home policy in the Northern Tier of Brazoria County on homes built after 1998 that have a WPI-8 certification, specifically zip codes: 77463, 77486, 77578, 77581, 77583, 77584 and 77588.

Article provided by Craig Slater, FARMERS Insurance agent in Pearland.  

He can be contacted at (281) 997-7575.