Inside a Policy - Texas Windstorm Insurance Association (2024)
What is a TWIA policy? A TWIA policy, linked to the right, is a contract between the policyholder and TWIA.The policy provides wind and hail coverage when insurance companies exclude it from homeowners and other property policies sold to coastal residents.
What does a TWIA policy cover? TWIA policies provide coverage only for windstorm and hail damages to property covered by the policy. By law, no other perils (such as fire or theft) are covered by TWIA policies. TWIA policies do not cover flood damage. Flood coverage can be obtained through the National Flood Insurance Program (NFIP).
How much does a TWIA policy cost?There are several factors that affect your premium (how much you pay for a policy). The deductible is chosen by a policyholder and has the biggest impact on how much premium a policyholder pays. The average residential policy premium is approximately $1,700 per year.
How do I know what my policy deductible is? The policy declarations page, sample linked to the right below the policy, is at the front of every TWIA policy. It customizes the policy to the policyholder’s specific coverage needs and shows the deductible (in #6 below), as well as other important information.
The following identify the corresponding sections in the sample declarations page linked to the right below the policy.
1. Your policy number, coverage period and agent 2. Mortgage company or other third party who may receive payment in the event of a loss 3. Messages and any customized coverage forms attached to your policy 4. Coverage A/B: A indicates coverage on a structure and B indicates personal property
Property Description covers the property type and location
Underwriting Details: indicates details of the construction and/or occupancy of the property
5. Policy coverages, forms, credits and surcharges 6. Coinsurance Requirement: the amount of coverage you must carry in relation to your home’s value. There are two kinds of home value:
Cash Value is the replacement value minus depreciation
Replacement Value is the amount it would cost to replace your home (not the market value)
Your agent should help you determine the amount of coverage needed to meet your coinsurance requirements
Per Item/Per Occ Deductible: the deductible that applies to each item listed on the declaration page per loss
7. Form Number: form reference numbers on policy
Limit of Liability: amount of insurance for the policy
Premium: amount you pay, including credits and/or surcharges
8. Total limit of liability, premium, and surcharges for the policy
By law, no other perils (such as fire or theft) are covered by TWIA policies. TWIA policies do not cover flood damage. Flood coverage can be obtained through the National Flood Insurance Program (NFIP).
TWIA wind insurance policies also come with a deductible, which you would pay out of pocket before the policy pays for repairs. A higher deductible means lower premiums, because you'd pay for a larger amount of the damage yourself. You can choose a TWIA insurance deductible of: $100.
The specific counties are Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio and Willacy.
We cover loss to the dwelling and personal property caused by wind-driven rain whether or not an opening is made in the dwelling by the direct force of wind or hail.
The cost of wind and hail insurance is influenced by a variety of factors including geographic location, home value, rebuilding costs, age and condition of the home, and the homeowner's choice of deductibles, with high-risk areas facing higher premiums and potentially separate deductibles for wind and hail damage.
TWIA is required to make a decision on your claim within 60 days of receiving your claim and all information that has been requested from you. We make decisions as quickly as possible and you may see a result in less than 30 days. TWIA Claims Decision Letter.
Earthquake, flood, mold, earth movement, and “wear and tear” are some of the perils that are usually excluded. When an insurer writes your homeowners coverage, the insurer is legally obligated to offer you earthquake coverage for an additional premium.
Flood coverage does not apply to damage from sewer backups, earth movement, mildew or mold damage (except for some instances where it can be linked to a flood event), and damage from a flood that originates from inside of the home, such as a burst kitchen sink pipe or overfilled bathtub.
Typical examples of excluded perils under a homeowners policy are flood, earthquake, and nuclear radiation. A typical example of an excluded loss under an automobile policy is damage due to wear and tear.
Some perils (causes of damage) that other insurers may cover, but TFPA does not, include falling trees or limbs; backed up sewer or drains; frozen pipes; damage from the weight of snow, ice, or sleet; and more. Learn more about our policies and coverage types on our dedicated webpage.
Introduction: My name is Horacio Brakus JD, I am a lively, splendid, jolly, vivacious, vast, cheerful, agreeable person who loves writing and wants to share my knowledge and understanding with you.
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