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TWIA rates determine the amount of premium charged to each TWIA policyholder. Adequate rates help ensure TWIA can meet its financial obligations. Rates are set by the TWIA Board of Directors and subject to review by the Texas Department of Insurance (TDI).

Information on Recommended Rate Change for 2025 TWIA Policies

TWIA’s Actuarial & Underwriting Committee has recommended that the TWIA Board of Directors approve a rate filing to increase rates by 10% for 2025 TWIA policies.

At its August 6 meeting, the TWIA Board will consider the Committee’s recommendation, the rate adequacy analysis, and stakeholder feedback when voting to decide the content of the Association’s annual required rate filing with the Texas Department of Insurance (TDI).

  • More information on TWIA’s annual rate filing consideration process can be found here.
  • More information on TWIA’s 2024 Rate Adequacy Analysis can be found here.
  • More information on the Actuarial & Underwriting Committee’s recommendation can be found here.
  • More information on the August 6 TWIA Board of Directors meeting can be found here.

How Premiums Are Calculated

Premiums are calculated based on standard rating factors, including amount of insurance, type of construction, deductible amount, and any optional additional coverages. Decisions policyholders make when personalizing their policy will affect their premium payment amount. This can include making changes to their coverage (ex: adding endorsements), adjusting the deductible amount, and adjusting the policy limit amount. 

TWIA does not use credit scoring or territorial rating. Premium credits are available for items certified as being built to recent windstorm building codes. 

Premiums may change based on changes in coverage, such as the amount of insurance provided by the policy. The average premium on a TWIA residential policy is approximately $2,300 (as of 6/30/2024). 

Statutory Requirements

Texas Insurance Code Chapter 2210 requires that TWIA make an annual rate filing with the Texas Department of Insurance on or before August 15 of each year. Rate filings are not required to propose a specific amount of change and may include no change to current rates. TWIA can also make rate filings at other times. Rate filings are subject to review and approval by the Commissioner of Insurance.

Chapter 2210 requires that TWIA rates be reasonable, adequate, and not unfairly discriminatory. TWIA’s rates include factors for actual and modeled windstorm losses, operational expenses, repayment of any outstanding bonds, and a reasonable provision for contribution to the Catastrophe Reserve Trust Fund.

Rate Adequacy

Based on a?2024 actuarial analysis, TWIA rates would need to increase by 38% for residential policies and 45% for commercial policies in order to be actuarially adequate. Current TWIA rates are uniform throughout the 14 first tier coastal counties. Because rates do not vary based on any geographical factors, such as distance from the coast, rates may be actuarially adequate in some areas. 

Recent Rate Changes

TWIA’s Board is mindful of insurance costs on policyholders and has chosen to propose a series of smaller rate changes over the years to achieve rate adequacy. The following table outlines the rate changes approved by the Board and implemented by TWIA since 2011.

Effective Date201120122013201420152016201720182019*20202021**20222023
Residential5%5%5%5%5%5%0%5%0%0%0%5%0%
Commercial5%5%5%5%5%5%0%5%0%0%0%5%0%

*TWIA filed a 10% rate increase with TDI. The governor suspended TDI’s consideration of the rate filing, and TWIA subsequently withdrew the filing.
**TWIA filed a 5% rate increase with TDI, which rejected the rate filing on procedural grounds.

The ongoing global outage is affecting some TWIA systems and we are working with our vendors to restore full service.

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