Coastal Texas Home Insurance Rates

Rockport, TX: Texas coastal house on canal pre Hurricane Irma

If you own a home along the Texas coastline, understanding Coastal Texas home insurance rates is critical to protecting both your property and your financial future. As a professional home insurance agent, I always explain to coastal homeowners that insuring a home near the Gulf comes with unique risks — especially from hurricanes, tropical storms, wind, and hail. These risks directly impact your premiums, coverage structure, and sometimes even where you obtain your policy.

While windstorm insurance is not required by Texas law, it is often required by mortgage lenders if your home is located in designated coastal counties or high-risk wind zones. In many cases, your standard homeowners policy will exclude wind and hail coverage altogether, meaning you must secure a separate windstorm policy to fully protect your home. Without it, damage from hurricanes or severe wind events could leave you paying out of pocket for substantial repairs.

A windstorm policy specifically covers damage caused by wind and hail — two of the most common and costly perils for coastal Texas homes. However, it does not replace your homeowners insurance policy. You will still need a standard homeowners policy to cover other risks such as fire, theft, liability, and water damage not caused by storm surge or flooding. In coastal areas, it’s common for homeowners to carry multiple policies working together: homeowners insurance, windstorm coverage, and often a separate flood insurance policy.

Because of the frequency and severity of coastal storms, windstorm insurance premiums in Texas coastal counties tend to be significantly higher than inland rates. However, if your home is damaged or destroyed by a hurricane, having proper wind coverage can be the difference between a manageable deductible and a devastating financial loss. Coastal Texas home insurance rates are largely driven by your home’s proximity to the coast, construction type, roof age, elevation, mitigation features, and local claims history.

Windstorm coverage is available through private insurance companies as well as the Texas Windstorm Insurance Association (TWIA), which serves as the insurer of last resort for many designated coastal counties when coverage is not available in the private market. Depending on your home’s location and eligibility, TWIA may be your primary windstorm provider, while your homeowners policy is written through a separate carrier.

Here is everything you need to know about windstorm insurance in the Lone Star state:

High Risk Areas In Texas

The Texas Windstorm Insurance Association (TWIA) was established by the Texas Legislature in 1971 in response to Hurricane Celia. It provides wind and hail insurance to 14 coastal counties that are not properly served by private insurers. They are the insurer of last resort for specific coastal counties where it can be difficult to find coverage in the private insurance market.

The Texas coast is no stranger to severe weather, with hurricanes and tornadoes occurring on a fairly regular basis. One of the worst storms to hit the Lone Star state was Hurricane Harvey, which struck in 2017. Harvey caused roughly $125 billion in damage and ranks as the second most expensive hurricane to hit the United States.

Harvey impacted an estimated 13 million people and roughly 135,000 homes, were damaged or destroyed due to historic flooding.

Due to the major damage caused by hurricanes and the fact that the Texas coast gets hit on a pretty regular basis, many insurers no longer write policies in the area and the ones that do often exclude damage from wind and hail which means homeowners on the coast often need to carry a separate wind and hail policy.

If you are unsure if your currently policy offers wind and hail coverage, read over your current policy or contact us to review your coverage options. If it turns out that this type of damage is excluded you may need to check into a policy with the TWIA.

It should be noted that a standard homeowners policy nor a TWIA wind and hail policy will not cover flooding damage, which was a major factor in Harvey and other Texas hurricanes. In order to be fully protected you need to carry a flood insurance policy as well.

What does a Wind and Hail Policy Cover?

A windstorm insurance policy is designed to fill the gap that is left by homeowners policies that exclude coverage for wind and hail damage. While private market policies may include additional protection, TWIA policies only cover damage that is caused by wind or hail, all other damage is excluded by law so these policies do not cover fire, vandalism or any damage that is not caused by wind or hail. Like all homeowner policies, flood damage is never covered.

A wind and hail policy protects not only your home but your personal belongings as well. In addition, all outbuildings and other detached structures on your property will be covered. This includes sheds, outbuildings, garages and even swimming pools.

Remember, flood and storm surge damage is never covered by a standard private market policy or a TWIA policy. If there is any risk of flooding at your home you will need to carry a separate flood insurance policy. Flood insurance is available in both the private market and the National Flood Insurance Program (NFIP).

Wind and hail insurance is available in the private market in most areas of Texas but in specific coastal areas it can be difficult or impossible, making the TWIA a necessity.

TWIA Details

The Texas Windstorm Insurance Association is the state run insurance company, which offers windstorm insurance policies to homeowners who are unable to find coverage in the private market. The TWIA is overseen by the Texas Department of Insurance.

The TWIA does not employ its own agents, the policies are sold through standard agents who also offer private market insurance. The TWIA is considered the insurer of last resort in Texas but in some cases you may not qualify as there are requirements for a TWIA policy.

As with most insurance companies, once a named storm grows to a certain size or enters the Gulf of Mexico, you will not be able to buy a TWIA policy until after the storm has cleared the area so always get coverage in place before the hurricane season kicks off.

According to the TWIA, you must meet the following requirements to purchase a policy:

• Properties must be located in the area designated by the Commissioner of Insurance, which currently includes all 14 first-tier coastal counties (Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio and Willacy) and parts of Harris County east of Highway 146
• You must have been rejected by at least one other insurance company that issues windstorm policies in your area.
• If your home was built, altered, remodeled or enlarged after Aug. 31, 2009, and is located in a flood zone that starts with a V (the highest risk) you will have to show proof that you are carrying a flood insurance policy before you can purchase a TWIA policy.
• Your home will need to be certified by the TDI or TWIA as being compliant with their windstorm building code specifications. Once you apply for a policy your home will be inspected. If it passes you will be issued a certificate of compliance, either WPI-8 or WPI-8-C.
• The home must be maintained. If you have unrepaired damage you may not be eligible for a policy.

What Coverages are Offered by TWIA?

A policy issued by the TWIA only covers hail and wind damage, all other damages are excluded. Here are a few important details of TWIA policies:

• Dwelling Coverage: Dwelling coverage is what pays to repair or rebuild your home after it is damaged by wind or hail. It will also cover swimming pools, fences and any other structures on your property such as outbuildings, sheds and detached garages. These additional structures are protected at 10 percent of total dwelling coverage.
• Contents Coverage: This part of the policy pays to repair or replace your personal property, which includes items such as furniture, clothing, electronics and any other personal property in your home. Personal property coverage is capped at $374,000 with a TWUA policy.
• Additional Living Expenses: This coverage will cover expenses if you cannot live in your home because it has been severely damaged by hail or wind. This may include hotel bills, restaurants, dry cleaning and other approved expenses. This coverage is limited to 20 percent of your total dwelling coverage.
• Increased Cost of Construction (ICC): This part of the policy will cover any additional expenses related to the bringing your home up to current code if it has to be repaired or rebuilt.

• Debris Removal: This coverage pays to clean up the debris that is on your property due to wind and hail. As an example, if you have a tree come down due to wind, this will cover the cost to clean it up.

Deductibles and Rates With TWIA

While rates will vary dramatically depending on your personal factors and the home you are insuring, according to TWIA data, the average rate for a windstorm policy is $1,587 a year.

Like all insurance policies, a TWIA policy comes with a deductible. You can choose from a flat rate deductible, which will result in a higher premium or a percentage deductible, which will lower your premium. In the majority of coverage areas, you can choose from the following deductibles:

Flat Rate Deductible: $100 or $250

Percentage: 1, 1.5, 2, 2.5, 3, 4, or 5 percent

A percentage deductible means that you will pay a percentage of the total dwelling coverage as your deductible. As an example, if you are carrying $300,000 in coverage and have a 3 percent deductible, you will be forking up $9,000 before you insurance kicks in. The higher your deductible, the lower your premium but always choose a deductible that you can easily afford in case you have to make a claim.

We Help Texas Homeowners that Live Along the Coast

At GetHomeInsuranceQuotes.com, we help coastal Texas homeowners compare multiple insurance options to secure the right combination of homeowners, windstorm, and flood coverage — all at the most competitive rate available. If you live along the Texas coast, having the right coverage structure is just as important as finding the lowest premium. Let us help you find the right coverage!