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Owners of second homes along the Texas coast may want to closely follow an upcoming meeting of the Texas Windstorm Insurance Association (TWIA) Board of Directors, where a proposal affecting future windstorm insurance eligibility is scheduled for discussion.

The TWIA Legislative and External Affairs Committee will meet on Tuesday, September 1, at 1:30 p.m. One of the agenda items includes discussion of a potential legislative recommendation that would limit TWIA residential coverage to owner-occupied homesteads, effectively eliminating eligibility for many second homes if enacted by the Texas Legislature.

TWIA serves as the insurer of last resort for wind and hail coverage in designated coastal areas when coverage is not available through the private insurance market. According to committee materials, approximately 20 percent of TWIA’s residential policies insure secondary homes, representing roughly $19 billion in insured exposure statewide.

The report also notes that Galveston County has the largest concentration of secondary-home TWIA policies in Texas, with more than 18,000 such policies. Because of the county’s large number of vacation homes and investment properties, any future legislative changes could have a significant impact on coastal property owners, real estate markets, tourism, and local economies.

The committee materials explain that the proposal is intended to reduce TWIA’s overall insurance exposure and probable maximum loss following major hurricanes. However, no policy change has been adopted, and the committee itself cannot eliminate coverage. Any change to TWIA eligibility would require action by the Texas Legislature before becoming law.

Property owners who wish to provide public comments regarding the proposal may submit them to PublicComment@TWIA.org before the meeting.

The complete meeting agenda and supporting materials are available on the Texas Windstorm Insurance Association’s website at www.twia.org.

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