Guides
TWIA and the Texas FAIR Plan: what each covers and when you need them
TWIA sells wind and hail coverage on the Texas coast and the Texas FAIR Plan covers other perils statewide. Learn eligibility, limits, deductibles and funding.
Texas has two state-created insurers of last resort, and they do different jobs. The Texas Windstorm Insurance Association (TWIA) sells wind and hail coverage only, in 14 coastal counties and part of Harris County. The Texas FAIR Plan Association (TFPA) sells basic property coverage for other perils, including fire, on homes in the state that cannot get it from a private insurer. A coastal homeowner who has been dropped often needs both, plus a separate flood policy.
Both are profiled together at Texas FAIR Plan and Texas Windstorm Insurance Association, and the state picture is in Texas and texas homeowners insurance: hail, wind and rates. This guide covers how they work, how they differ and what to do if you land in one.
What each plan covers
| TWIA | Texas FAIR Plan (TFPA) | |
|---|---|---|
| Perils | Wind and hail only | Fire and other basic perils; wind and hail as a deductible-based add-on |
| Where | 14 first-tier coastal counties plus Harris County east of Highway 146 | Statewide |
| Typical use | Pair with a private policy that excludes wind and hail | Home that private insurers will not write or renew |
| Flood | Not covered | Not covered |
TWIA does not pay for flood or storm surge, and neither does the FAIR Plan. Hurricane water damage is a flood policy question; see NFIP flood insurance explained and does homeowners insurance cover flooding?.
Who can get a TWIA policy
According to TWIA (read October 2026), the property must be in the designated area, which is all 14 first-tier counties (Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio and Willacy) and the Harris County cities of La Porte, Morgan's Point, Pasadena, Seabrook and Shore Acres. Other conditions:
- You must have been turned down for wind and hail coverage by at least one authorized insurer actively writing it in your area. Your agent submits the declination.
- The building must be certified as built to the windstorm code, through a TDI WPI-8 certificate or TWIA's own WPI-8-C, with limited exceptions. Older homes without a certificate are the usual snag.
- A building in flood zone V, VE or V1-30 that was built or substantially altered on or after September 1, 2009 must show proof of flood insurance where NFIP coverage is available.
- The property must be in insurable condition.
TWIA stops accepting new applications and changes when a storm threatens, so a binding moratorium can arrive just as people start shopping. Do not wait for a named storm.
Limits and deductibles
TWIA's Instructions and Guidelines Manual, effective April 18, 2022, sets maximums of $1,773,000 for a dwelling and its contents and $374,000 for contents in an owner-occupied condo, apartment or townhouse unit. TWIA's 2026 annual report lists a submission to the Commissioner to adjust the maximums, so confirm the current figure with TWIA before relying on it for a high-value house.
Under the Texas Department of Insurance's October 2026 overview, TWIA residential deductibles are $100, $250 or 1% of the covered amount, with optional 1.5%, 2%, 2.5%, 3%, 4% or 5%. TWIA does not offer 10%. Texas has no hurricane-specific deductible; the wind/hail deductible applies to any windstorm or hail loss. Say your insured amount is $300,000 and you choose 2%: the first $6,000 of a wind loss is yours. Try numbers in the hurricane and percentage deductible calculator, and see wind and hail deductibles explained.
On the FAIR Plan side, TFPA's notice says that on or after July 1, 2026 wind/hail deductible choices are 2%, 3%, 4% and 5%, with 1% eliminated, and existing 1% policies move to 2% at renewal. Other perils run 1% to 5%. TFPA's published dwelling maximum is $1,000,000, according to its summary of coverages.
How TWIA is funded, and why it affects you
TWIA is not paid from the general state budget. It collects premiums, builds a reserve, buys reinsurance and catastrophe bonds, and has a legislated order for paying losses beyond that.
Texas House Bill 3689 took effect September 1, 2025. For losses incurred after December 31, 2025, it replaced the old public-securities structure with state financing arrangements of up to $1 billion, repaid through a catastrophe surcharge on policies across the property market. It also lowered the funding target from a 1-in-100 to a 1-in-50-year storm. Beyond that, member insurers can be assessed up to $1 billion and cannot recoup it through a premium surcharge or tax credit, according to TWIA. On June 1, 2026 TWIA said it had secured access to $4.3 billion for the 2026 hurricane season. TWIA's FAQ page still describes the older bond system, which governs pre-2026 catastrophe years.
The practical meaning: a big storm can lead to a surcharge on Texas property policies, which is why legislators keep revisiting the structure. TWIA reported about 288,676 policies and $128.3 billion of exposure in the second quarter of 2026.
Claims rules specific to TWIA
TWIA claims follow their own statute. You must file within one year of the damage, and TWIA may ask for missing information within 30 days of the claim. If TWIA denies coverage, a suit has to be filed within two years of the denial notice, and after notice of intent to sue TWIA may require mediation or a moderated settlement conference under Insurance Code section 2210.575. TDI's coastal outreach team helps with TWIA claim problems at 855-352-6278. For ordinary policies the clocks differ; see how long insurers have to pay a home claim.
If you are dropped or cannot find coverage
- Get the nonrenewal notice in writing. Texas requires 60 days' notice of nonrenewal for policies bought or renewed since 2024, and the insurer must give a reason on request (Insurance Code section 551.105). The nonrenewal action plan walks through the first week.
- Ask whether the carrier is dropping only wind and hail. Some insurers keep fire and liability and exclude wind on the coast. That pairs naturally with TWIA. See windstorm exclusions and wind-only policies.
- Order the windstorm certificate early. If your home needs a WPI-8 inspection or repairs to qualify, that is the longest lead item.
- Compare the combined cost. A private policy plus TWIA wind plus flood can exceed a single private policy, but the single policy may not exist. Include the TFPA option for fire if the private market has turned you away.
- Check surplus lines. Non-admitted carriers sometimes offer one policy that includes wind, without guaranty fund protection. See surplus lines home insurance when standard carriers say no.
- Keep your lender informed. A mortgage servicer wants proof of every policy. Send declarations pages for each; a gap in wind coverage can trigger force-placed insurance.
Key takeaways
- TWIA covers wind and hail only on the Texas coast; the Texas FAIR Plan covers other basic perils statewide. Neither covers flood.
- TWIA needs a declination from an admitted insurer and a windstorm certificate for the building, and it closes to new business when a storm approaches.
- TWIA deductibles run from $100 or 1% up to 5%; the FAIR Plan dropped its 1% wind/hail option from July 1, 2026.
- Since the 2025 reform, TWIA losses beyond reserves draw on state financing repaid by a statewide surcharge, then insurer assessments.
- TWIA claims have a one-year filing deadline and a two-year deadline to sue after a denial.