TWIA policies can be cancelled and refunds issued under certain circumstances. Policyholders are encouraged to consult with their agents to understand the potential risks associated with early cancellation requests.
How to Request a Policy Cancellation
- For agents, all cancellation requests should be submitted through the TWIA Agent Portal. Use this step-by-step guide on Cancelling a Residential Policy.
- For policyholders, cancellation requests can be submitted by emailing agentservices@TWIA.org. Policyholders are encouraged to consult with their agents to understand the potential risks associated with early cancellation requests.
Policyholder Requested Cancellations and Premium Refunds
TWIA has updated its premium refund rules for policies cancelled by the policyholder, in compliance with House Bill 3208, enacted by the Texas Legislature in 2023 and documented in Insurance Code Chapter 2210.204.
Refunds cannot be issued and TWIA is required to retain the entire annual premium unless the cancellation is for one of the following reasons:
- Coverage purchased elsewhere (similar coverage in the private market)
- Death of the policyholder
- Total loss of the property
- Sale of the insured property
Agents submitting a policy cancellation must select the reason for cancellation and provide the requested cancellation effective date, including any required documentation.
Documentation Required
To cancel a TWIA policy and be eligible for a refund, the policy must be in force and active, and proof supporting the cancellation reason must be provided.
The listed documentation is not all-inclusive. Other documentation may be used to complete the cancellation process.
| Cancellation Reason | Documentation Required |
| Coverage Elsewhere | Proof of other coverage from another carrier. Must show wind and hail is covered. |
| Death of Policyholder | Death certificate of policyholder. |
| Policyholder (Insured) Request | N/A (Refer to manual below). |
| No Financial/Insurable Interest | Written statement indicating closing did not occur. |
| Policy Rewritten | Proof of other coverage from another carrier. Must show wind and hail is covered. |
| Sold | Sale of insured property, closing documents, etc. |
| Total Loss | Proof of total loss decision. |
In the Agent Portal, the refund method and estimated refund amount will display based on the cancellation reason, with the exception of a Policyholder (Insured) Request.
Important Things to Note
- If a policy is on TWIA 10 Pay (Auto Draft) and the cancellation does not qualify for a refund, any remaining unpaid premium will be due upon cancellation and drafted from the policyholder account.
- Coverage ends on the cancellation date, even if no refund is due.
- Each cancellation has its own refund guidelines. Please refer to the Cancellations section in the TWIA Instructions and Guidelines Manual.
For More Information
Visit our TWIA Agent Training Center for job aids, videos, and other training resources or contact our Policy Services team at agentservices@twia.org or (800) 788-8247.
