WINDSTORM INSURANCE TO INCREASE 8.2% FEBRUARY 1, 2008!
According to the Texas Department of Insurance, Texas Insurance Commissioner, Mike Geeslin has approved a residential rate increase of 8.2%. This will add $84.00 to the $1,023.00 average annual premium for homeowners in 14 coastal counties and a portion of Harris County.
Questions to ask about Windstorm Insurance:
1. Is Windstorm Insurance mandatory?
For the most part, yes. Mortgage companies typically require that you purchase Windstorm Insurance. In the event you decide to sell your home, the Certificate of Compliance (WPI-8) is an excellent selling point which provides code compliance and provides eligibility for Windstorm Insurance.
2. Are all counties affected by Windstorm requirements?
Just the counties that border the Gulf of Mexico (First Tier Counties). Chambers, Jefferson, Galveston, Brazoria, Matagorda, Calhoun, Refugio, San Patricio, Aransas, Nueces, Kleberg, Kenedy, Willacy and Cameron. And portions of the following cities east of SH 146 in Harris County - Pasadena, Shoreacres, Morgan's Point and Seabrook.
3. How do I qualify for Windstorm and Hail Insurance coverage through TWIA (Texas Windstorm Insurance Association)?
To qualify for Windstorm and Hail Insurance coverage through TWIA, new structures, alterations, additions, or repairs to existing structures, including re-roofs or roof repairs, located in the designated catastrophe areas must be constructed and inspected according to the building specifications adopted by TDI (Texas Department of Insurance).
4. I am buying a new home and do not know if the house was ever inspected and certified by TDI, how do I find out?
Contact your insurance agent to see if there is a WPI-8 on file. If so, it can be downloaded from the website of the Texas Department of Insurance. (or you can go to the site and re-print the certificate). www.tdi.state.tx.us
5. What if the house does not pass inspection? What is my alternative/next step?
Completed structures can be certified by appointed Engineers once deficiencies are corrected and code compliance met. Contact your Insurance Agent for more information.
6. Can structures built prior to January 1, 1988 obtain insurance through TWIA?
Structures built prior to January 1, 1988 are eligible through TWIA under certain conditions. Contact your Insurance Agent for eligibility requirements.
7. Can I still obtain Windstorm and Hail Insurance through TWIA if the home does not have a Certificate of Compliance (WPI-8)?
Yes, if your home was built after 1988, was altered, had structural changes, or the roof was replaced, and the changes were not certified. You may be eligible for the Waiver Program. Certain restrictions will apply.
8. I understand that Insurance credits are available from the TWIA if my home is built to superior construction standards?
Windstorm and Hail Insurance discounts are available for new homes that are constructed in accordance with the IRC (International Residential Code) and IBC (International Building Code). To learn more, contact your Insurance Agent.
TWIA - who are we?
The Texas Windstorm Insurance Association was established by legislative mandate to provide Wind and Hail Insurance for Texas Gulf Coast property owners in the event of a catastrophic loss. Our company's purpose is to provide "basic" coverage unavailable in traditional insurance markets for homeowners who might otherwise be left uninsured.
The Association was established in 1971 when Hurricane Celia struck the Texas coast on August 3, 1970, many insurance companies ceased to write business in this region. To protect homeowners, the State stepped in and created the Texas Catastrophe Property Insurance Association (now called the TWIA).
***Information provided by the Texas Windstorm Insurance Association***
For further information on this article and other insurance related questions, please contact Cindy Martinez or John LeBlanc with Farmers Insurance at 713-436-7929.
As always, if you or someone you know is interested in buying or selling, please call me!
Kathye Warfield
www.PearlandHomes.com
281-485-1946
