TWIA

Limits of Liability Reminder

No Change to Maximum Limits of Liability in 2017

The TWIA Board of Directors voted to file for no change in its maximum liability limits at its August 2, 2016 meeting, based on slight decreases in construction costs. The Insurance Commissioner approved the filing on Monday, December 5.

The maximum limits for 2017 are:

Dwellings and individually owned townhouses	$1,773,000
Contents of an apartment, condominium, or townhouse	$374,000
Commercial structures and associated contents	$4,424,000

TWIA is required to propose inflation adjustments to the maximum liability limits under a windstorm and hail policy, as prescribed by Texas Insurance Code Subchapter K of Chapter 2210 (Sections 2210.501 – 2210.504).

TWIA 220 Endorsement Reminders

While there will not be a rate increase effective January 1, 2017, please keep in mind and communicate to your clients that there are other factors that may increase a policyholder’s premium, such as the TWIA 220 Endorsement (Automated Adjusted Building Cost).

The TWIA 220 Endorsement was put in place to provide an automated way for insured amounts to adjust for approximate increases in building costs. TWIA encourages you to review with your clients their policy limits regularly to ensure that their coverage is adequate to repair or replace the insured property. The process for determining the amount of adjustment uses construction cost indices produced by Marshall & Swift / Boeckh (MSB). For 2016, construction costs decreased in many areas. Policies in these areas may see an automatic adjustment of $1,000, the minimum increase under the endorsement.

‹ Back Home

COMMENTS (0)