Why Is Texas Windstorm Insurance Recommending No Rate Increase for 2027?
In a major piece of good news for Texas coastal homeowners, the Texas Windstorm Insurance Association has just recommended zero rate increases for 2027. Although the TWIA is required by law to create a recommended increase, this time around they made a different choice.
The Official Recommendation Is Fresh
This development is brand new. TWIA's Actuarial and Underwriting Committee met on June 30 and voted 4 to 1 to recommend that the association make a rate filing with the Texas Department of Insurance requesting no change in residential or commercial rates for 2027 policies. The full TWIA Board of Directors is expected to make a final decision at its August 4 meeting in Galveston — and the annual rate filing must be submitted to TDI by August 15.
Rates Are Finally Adequate — A Rare Milestone
The driving force behind the recommendation is a significant shift in TWIA's financial position. The 2026 Rate Adequacy Analysis found rates to be adequate by 9% for residential coverage and 4% for commercial coverage — a remarkable turnaround from just two years earlier, when TWIA's rates were found to be inadequate by 38% for residential coverage and 45% for commercial coverage. TWIA's chief actuary Jim Murphy confirmed that Texas windstorm rates are now adequate for the first time in years.
Landmark 2025 Legislation Deserves the Credit
The improvement did not happen on its own. Murphy attributed the improved financial position primarily to legislation filed by State Rep. Todd Hunter during the 2025 session, which reduced the minimum required funding TWIA must secure each year — translating directly into dramatically lower reinsurance costs for the association, with savings passed on to policyholders in the form of rate stability.
What It Means for Coastal Policyholders
Murphy acknowledged that windstorm insurance is expensive and a financial struggle for many coastal policyholders — and expressed that TWIA is very pleased to be able to keep rates stable from one year to the next. However, Murphy was also candid about the fragility of the situation — noting that a significant increase in losses, claims, or expenses could lead to a future rate increase recommendation, and that the outlook remains entirely dependent on what this hurricane season delivers.
