Dear Agent,

Hurricane Harvey has been devastating to many communities. As you are well aware, the damage to both residential and commercial buildings is widespread. As policyholders begin rebuilding, we thought this would be 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 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, or that have missing shingles, siding or that have damage that allows weather elements to add additional damage are not insurable and should not be submitted for coverage.

In respect to TWIA policies that have incurred a loss during Hurricane Harvey, Underwriting will do everything possible 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 the insured 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 insured determines there are no coverages still applicable, you may cancel the policy effective the day after the loss. If you rewrite the policy at a later date, you will need to provide any applicable Certificates of Compliance for any structural repairs.

Additional guidelines related to builder’s risk policies on properties affected by Hurricane Harvey:

  1. If TWIA provided permanent coverage at the time of loss, coverage will continue to be provided under the permanent policy (a builder’s risk policy will not be necessary). Appropriate time will be allowed to provide any applicable Certificates of Compliance for any structural repairs.
  2. If the property sustained a total loss, and the insured chooses to rebuild, a builder’s risk policy may be written.
  3. If TWIA did not provide permanent coverage at the time of loss, and there are structural damages (not a total loss) a builder’s risk policy may not be written.

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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