Key takeaways in this bulletin:
- Premiums on renewal offers will include the 5% rate increase on policies effective January 1, with renewal notices being mailed starting November 1.
- This is the first TWIA rate increase to go into effect since 2018.
- Agents can contact Agent Services with questions about premium and policy coverage changes.
Dear agent,
Beginning November 1, 2021, residential and commercial renewal offers will include a 5% increase in rates. The rate increase is effective for all new and renewal policies effective on and after January 1, 2022.
The rate increase was approved by the TWIA Board of Directors by a vote of 5 to 3 at its August meeting for the Association’s required annual rate filing with the Texas Department of Insurance (TDI). This is the first TWIA rate increase to go into effect since 2018.
Adjusted Building Cost (ABC) Endorsement: Other Premium Changes Policyholders May See
As we announced in May, automatic adjustments associated with the Adjusted Building Cost (ABC) endorsement (TWIA-220) reflect an increase of about 2% (varies by location). The ABC endorsement automatically increases the amount of coverage on each residential policy based on increases to local building costs. A policyholder may opt out of this automatic increase through you, their agent.
Maximum Liability Limits Increased for Manufactured Homes
TDI has approved TWIA’s filing for an increase in the maximum liability limits for manufactured homes. Maximum limits for manufactured homes will increase to $96,600 for policies effective on or after January 1, 2022.
Contact Us
Renewal offers are available for agents to review in Policy Center 60 days prior to the renewal date. If you have any questions or concerns about renewal offers or any other issue related to TWIA policies, our Agent Services team is here to help. Contact us by emailing agentservices@twia.org or calling (800) 788-8247.
Sincerely,
Texas Windstorm Insurance Association
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