Texas Condo Insurance & TWIA Windstorm Rules

A Texas condominium association requires windstorm coverage through the Texas Windstorm Insurance Association (TWIA) only if the property sits in one of 14 designated coastal counties and private carriers decline to write wind protection. At The HOA Guide, we explain community association management, reserves, and master policy structures across state lines to help boards protect their balance sheets. For individual unit contents, TWIA sets a maximum coverage limit of $374,000 for policies issued or renewed on or after January 1, 2026, while the association charges a statewide average annual premium of approximately $2,877 across all policyholders as of March 2026.

Windstorm coverage through the state pool functions strictly as an insurer of last resort. It does not replace a standard master insurance policy, and it leaves flood, fire, theft, and liability completely unaddressed. Boards and owners along the Gulf Coast must coordinate multiple policies to avoid catastrophic financial exposures.

Where TWIA Operates Along the Gulf Coast

The Texas Windstorm Insurance Association (TWIA) provides wind and hail insurance exclusively within 14 designated coastal counties along the Texas Gulf Coast. Those 14 statutory counties include Aransas, Brazoria, Calhoun, Cameron, Galveston, Jefferson, Kennedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, Victoria, and Willacy.

Private carriers frequently decline to write standard windstorm protection along the coast. Severe tropical storms and hurricane exposures create high loss potential, prompting private underwriters to restrict their coastal books. The state created TWIA to serve as an insurer of last resort so condominium associations and unit owners could secure basic property coverage when private options disappear.

Florida operates a similar residual mechanism through Citizens Property Insurance Corporation, absorbing coastal risks rejected by private firms. You can review how other states structure residual property markets in our guide to Florida condo insurance. In Texas, TWIA operations remain subject to direct oversight by the Texas Department of Insurance (TDI). If your condominium sits outside those 14 counties, your association cannot purchase a TWIA policy under any circumstance.

What a TWIA Windstorm Policy Covers and Excludes

A TWIA policy covers physical damage caused directly by windstorm and hail, and it excludes all other property perils. The coverage does not extend to flood, storm surge, fire, theft, vandalism, or general liability. If a hurricane pushes coastal water into ground-floor units, TWIA denies the claim because water damage falls outside windstorm scope.

Condominium associations in coastal territory must maintain multiple independent policies. A complete risk plan requires a standard commercial property policy for fire and general perils, a TWIA policy for wind and hail, and flood coverage through the National Flood Insurance Program (NFIP) or a private flood carrier. For a comprehensive overview of master policy components, read our resource on what HOA insurance covers.

State regulations place strict caps on TWIA policy limits. For policies issued or renewed on or after January 1, 2026, TWIA establishes a maximum coverage limit of $374,000 for the contents of a single apartment or condominium unit. Statewide, TWIA policyholders paid an average annual premium of approximately $2,877 as of March 2026. That $2,877 number represents a broad statewide average across all covered property types, not a guaranteed quote for a multi-story condominium building.

How a Condominium Qualifies for State Windstorm Coverage

Qualifying for TWIA coverage requires proof of private market rejection and engineering verification of the property. The state insurer will not accept an application simply because a board prefers state-backed pricing.

To establish eligibility, an applicant must satisfy two mandatory conditions:

• Obtain a formal declination from at least one authorized insurer writing property insurance in the local market, proving private coverage was denied.
• Secure a Windstorm Inspection Certificate of Compliance (Form WPI-8) for any structure built or altered since 1988, confirming structural adherence to windstorm building codes.

The Form WPI-8 requirement often surprises condominium boards during reroofing or exterior siding replacements. If a contractor completes structural modifications without obtaining TDI windstorm inspections during construction, the property forfeits its compliance status. Without an active Form WPI-8 on file, TWIA will refuse coverage, leaving the association uninsured for wind events. Boards must ensure contractors pull appropriate municipal permits and schedule certified windstorm inspectors before commencing major capital repairs.

Secondary and Vacation Condominiums Retain TWIA Eligibility

Secondary residences and vacation condominiums remain eligible for TWIA coverage following a decisive administrative vote in early 2026. A TWIA governing committee voted 2 to 1 to reject a proposal that would have eliminated windstorm coverage for roughly 53,620 secondary and vacation properties in coastal regions.

The proposed exclusion would have severely affected resort communities in Galveston County and Nueces County. If approved, tens of thousands of vacation condominium owners would have lost their insurer of last resort, creating widespread non-compliance with secondary mortgage market guidelines. For now, secondary condominium properties retain access to TWIA underwriting, stabilizing coastal association coverage across the Gulf Coast.

Why Inland Texas Association Premiums Keep Escalating

Condominium master policy rates outside coastal counties have surged due to convective weather patterns, roof damage claims, and rising global reinsurance expenses. Property insurers in Texas filed average rate increases of approximately 22 percent in 2023 alone, with steady premium growth continuing through 2025 and 2026.

Inland associations do not face hurricane storm surge, but they encounter frequent tornadoes and severe hail events. The hail-prone corridors of North Texas, the Texas Hill Country, and the greater Houston area generate repeated claims for damaged roofing systems, broken windows, and ruined exterior trim. Carriers respond to these recurring losses by narrowing underwriting appetite and raising mandatory percentage-based wind and hail deductibles.

Rising global reinsurance rates also inflate Texas association bills. Reinsurance companies charge primary carriers more to backstop catastrophic losses, and insurers pass these expenses directly to policyholders. Consequently, many inland condominium boards find standard admitted carriers unwilling to renew their coverage. Communities increasingly rely on surplus-lines carriers to secure master policies. Surplus-lines insurers operate outside standard state rate filing restrictions, which exposes associations to unpredictable premiums and restrictive terms. For guidance on state governance statutes, review our guide to Texas HOA laws, and examine our national comparison of the best HOA insurance companies.

Master Policies Compared to Individual HO-6 Policies

A condominium master policy protects common elements and structural assets, while an individual HO-6 policy safeguards an owner’s personal property, interior improvements, and private liability. Confusion between these two coverage forms frequently leads to substantial uncovered losses following a severe storm.

The association’s master policy funds repairs to exterior roofs, exterior siding, shared hallways, and common amenities. It does not pay to replace an individual owner’s furniture, custom kitchen cabinets, floor coverings, or personal belongings. Condominium unit owners must purchase their own Homeowners 6 (HO-6) insurance policy to bridge this coverage gap. To learn more about how association coverage balances with individual policies, see our detailed guide on HOA insurance vs. homeowners insurance.

Coverage Element	Condominium Master Policy	Unit Owner HO-6 Policy
Building Exterior & Roof	Covered as common association property	Excluded from individual unit policy
Unit Interior Finishes	Excluded in standard bare-walls policies	Covered up to selected dwelling limits
Personal Belongings	Excluded entirely across all units	Covered up to selected contents limits
Shared Common Areas	Covered for property and liability	Excluded (handled by master policy)
Interior Unit Liability	Excluded (association covers common grounds)	Covered for personal accidents inside the home
Loss Assessment Protection	Excluded (association levies the assessment)	Covered up to specific policy endorsements

Situations Where Standard Coastal Guidance Shifts

This guidance does not fit an inland Texas condominium community located far from both the Gulf Coast and severe hail-prone corridors. Associations operating in low-risk inland pockets often secure standard admitted policies with moderate deductibles and face far less rate volatility than coastal or North Texas properties.

Our assessment would change if the Texas Legislature modifies the 14-county statutory territory for TWIA or alters the January 2026 contents coverage maximum of $374,000. Similarly, if lawmakers revisit the proposal to exclude secondary residences, vacation condominium boards would face an entirely different insurance environment. You can explore broader association financial planning through our insurance and reserves hub.

To safeguard your property, review your association declarations, audit your Form WPI-8 documentation, and request competitive renewal quotes through a licensed Texas insurance specialist well before your master policy expires.

General educational information, not licensed insurance or legal advice. Condominium boards should verify current TWIA eligibility criteria, Form WPI-8 compliance records, and policy premium quotes directly with a licensed Texas insurance agent.