Average Cost of Windstorm Insurance in Texas
In Texas, especially along the Gulf Coast, windstorm insurance is often required by lenders and typically isn't included in standard homeowners policies. A major provider, the Texas Windstorm Insurance Association (TWIA), reports that the average annual premium for residential windstorm insurance is around $2,400, with other sources citing figures closer to $1,600–$2,000 depending on coverage specifics.
Why Premiums Vary
Premiums depend on multiple factors:
- Location: Coastal areas face higher rates due to increased hurricane and windstorm exposure.
- Construction quality: Homes built to recent wind-resistant codes (e.g., IRC standards) can earn up to 26% discounts.
- Deductibles chosen: Windstorm policies, including those from TWIA, typically have percentage-based deductibles (1–5% of dwelling coverage), with the deductible level directly affecting the premium.
Comparison with Standard Home Insurance
Windstorm insurance is separate from standard homeowners coverage and only protects against wind and hail damage. Across Texas, homeowners insurance costs average $4,700–$6,400 annually in major metro areas, but windstorm premiums alone typically range from $1,600 to $2,400.
Private Alternatives vs. TWIA
If property owners are denied wind coverage privately, TWIA provides a safety net but often at higher rates, averaging around $2,387 as of March 2025. Private insurers may offer lower premiums, particularly for properties already compliant with wind-resistant standards.
Market Pressures and Premium Trends
TWIA's funding needs are affected by catastrophe exposure and reinsurance costs. A recent rate adequacy report showed a modest 3% residential premium underpricing, prompting scrutiny and potential rate adjustments. Inflation, climate-driven disaster frequency, and a reinsurance storm have driven up both homeowners and windstorm rates across Texas—which have already seen double-digit annual increases.
Ways to Reduce Windstorm Premiums
Homeowners can reduce premiums by:
- Building or retrofitting to code: Homes certified under wind-resistant codes qualify for discounted rates of up to 26% off.
- Choosing higher deductibles: Opting for a 2–5% windstorm deductible can significantly lower annual costs.
- Shopping multiple providers: Comparing private insurers and TWIA offerings based on location, coverage, and construction standards.
Conclusion
Texans, especially those in coastal or high-wind areas, should expect to pay $1,600 to $2,400 per year for windstorm insurance. Premiums vary widely based on location, construction standards, and deductible levels. Investing in wind-resistant upgrades and comparing policies can help homeowners manage costs and maximize coverage.