Dear Agent,

Rebuilding the communities from the destruction that occurred with Hurricane Harvey is a long-term process. TWIA is committed to serving all agents and policyholders, present and future. As policyholders continue to rebuild, we believe this is a good time to send a reminder about the eligibility and insurability guidelines that apply to new business submissions to Texas Windstorm Insurance Association.

Eligibility Guidelines, both before and after the storm, remain the same:

  • Located in one of 14 first-tier coastal counties and parts of Harris county; 
  • A declination of coverage from an authorized insurer writing wind and hail insurance in the first-tier coastal counties; and
  • If applicable, flood insurance. 

Insurability Guidelines, both before and after the storm, remain the same and include:

  • The physical condition of the property, such as its construction, maintenance, or general deterioration;
  • The amount of insurance requested, together with other insurance, is within relationship to the reasonable value (ACV or Replacement Cost Value) of the property. 

This means that structures must be insurable and must meet reasonable underwriting standards confirming that any structural damages from Hurricane Harvey or other storms have been repaired. Structures that are tarped awaiting repair, have shingles or siding missing, or that have damage that allows weather elements to add additional damage are not insurable and should not be submitted for new coverage (these structures may be eligible for a Builders Risk policy in some circumstances - please contact underwriting to learn more).

In respect to existing TWIA policies (residential dwellings and commercial structures) that have incurred a loss during Hurricane Harvey, TWIA Underwriting will do everything permissible to work with you and the policyholder and make reasonable accommodations to provide continuous coverage while the structure is undergoing repairs.

Guidelines related to total losses on properties affected by Hurricane Harvey:

We encourage you to visit with your policyholders to review the coverages under their policy. The policy may remain in-force if it’s determined there are coverages under the policy that are still applicable. If the policyholder determines there are no coverages still applicable, the policy may be cancelled back to the day after the loss. If the policy is rewritten at a later date, you must provide all applicable Certificates of Compliance for structural repairs.

Additional guidelines related to Builders Risk policies on properties affected by Hurricane Harvey:

  1. If TWIA provided either residential or commercial coverage at the time of loss, coverage will continue to be provided under the existing policy or renewal (a Builders Risk policy will not be necessary). Appropriate time will be allowed to provide any applicable Certificates of Compliance for structural repairs.
  2. If the property sustained a total loss and the policyholder chooses to rebuild, a Builders Risk policy may be written.
  3. If TWIA did not provide coverage at the time of loss, and there were structural damages (not a total loss) a Builders Risk policy may be written; however, continuous improvement progress and ongoing construction must be demonstrated.   

Please share this information with your clients. If you have any questions or concerns, please contact Agent Services at agentservices@twia.org or 800-788-8247.

Sincerely,

Texas Windstorm Insurance Association

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