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Texas Hurricane Insurance Laws

Texas homeowners face unique challenges when it comes to protecting their properties from hurricane damage. The state’s coastal regions are at significant risk of tropical storms and hurricanes, which can have far-reaching consequences for its residents.

The financial impact of hurricanes on Texas homeowners can be severe. According to the Texas Department of Insurance, Hurricane Harvey in 2017 resulted in over $19 billion in insurance claims, with an average residential property claim of $68,000. 

State law includes specific provisions for insurance policies to address the area’s high risk of tropical storms and hurricane-related damage. Familiarity with these laws can lead to more informed decisions about coverage, a clearer understanding of the claims process, and better awareness of homeowners’ rights.

What types of insurance protect a Texas home from hurricane damage?

Texas homeowners typically need two types of insurance for comprehensive hurricane protection:

Homeowners Insurance: Covers damage from wind, including hurricane winds.

Flood Insurance: A separate policy that covers damage from rising water, including storm surge.

  • Standard homeowners policies in Texas typically cover wind damage from hurricanes.
  • Flood damage requires a separate flood insurance policy.
  • Coastal areas may need additional windstorm coverage through the Texas Windstorm Insurance Association (TWIA).

What is the Texas Windstorm Insurance Association (TWIA)?

  • The Texas Windstorm Insurance Association (TWIA) provides essential coverage for coastal homeowners:
  • TWIA offers windstorm and hail insurance in 14 coastal counties and parts of Harris County.
  • The Texas Legislature established TWIA in 1971 to provide coverage where private insurers do not.
  • TWIA policies are separate from standard homeowners insurance.
  • Properties must meet specific building code requirements for TWIA eligibility.
  • TWIA serves as a last-resort insurer for wind and hail coverage in designated coastal areas.

What are the time limits for filing a hurricane damage claim in Texas?

Texas law sets specific deadlines for property damage claims:

  • Homeowners have two years from the date of loss to file a lawsuit for most property damage claims.
  • Insurance policies often require claim filing within a much shorter timeframe, typically 30-60 days after the damage occurs.
  • Generally, House Bill 1774 (2017) requires a 60-day notice to insurers before filing a weather-related lawsuit.

Always check your specific policy for exact deadlines and requirements. It’s best to consult with an experienced hurricane lawyer for legal advice.

How does Texas law protect homeowners from unfair insurance practices?

Texas law includes several protections for insurance policyholders:

Prompt Payment of Claims Act: Sets timelines for insurers to acknowledge, investigate, and pay claims.

Prohibition of Unfair Claim Settlement Practices: Prevents insurers from using deceptive or unfair methods in claim settlements.

Policyholders may receive additional compensation if insurers violate these laws.

What insurance coverage level does a Texas home need?

Adequate insurance coverage is crucial for Texas homeowners:
  • Many experts recommend insuring homes for 100% of their replacement cost.
  • Underinsurance can result in insufficient funds to rebuild after a total loss.
  • Some policies reduce payouts for partial losses on underinsured homes.
Review and update your coverage annually to match current construction costs and home values.

How should Texas homeowners prepare for potential hurricane insurance claims?

Effective preparation can streamline the claims process:

Document Your Property

  • Create a detailed inventory of your belongings.
  • Take photos and videos of your property.
  • Store documentation in a secure, off-site location or cloud storage.

Review Your Policy

  • Understand your coverage limits and deductibles.
  • Identify covered and excluded perils.
  • Consider additional coverage for high-value items.

Maintain Your Property

  • Keep up with regular maintenance.
  • Promptly repair any existing damage.

Develop an Emergency Plan

  • Create a system for safeguarding important documents.
  • Familiarize yourself with evacuation routes and shelter locations.

What recent changes affect Texas hurricane insurance laws?

What recent changes affect Texas hurricane insurance laws?

House Bill 1774 (2017)

  • Requires 60-day notice before filing weather-related lawsuits against insurers
  • Modifies the interest rate for delayed payments in certain cases

Senate Bill 615 (2019)

  • Enhances regulation of public insurance adjusters.
  • Aims to reduce fraudulent practices in the insurance industry.

House Bill 2102 (2021)

These changes balance consumer protection with insurance industry stability. Homeowners should be aware of new notice requirements and potential changes in claim procedures.

What rights do Texas homeowners have if insurers non-renew policies after hurricane claims?

Texas law provides specific protections regarding policy non-renewals:
  • Insurers must give 30 days’ notice before non-renewing a policy.
  • A single claim cannot be the sole reason for non-renewal.
  • For policies in force for three years or more, insurers cannot non-renew based on claims from natural causes or claims filed but not paid.
If you suspect unfair non-renewal:
  • File a complaint with the Texas Department of Insurance.
  • Consult a legal professional to understand your options.

How do Texas laws address hurricane deductibles?

Texas law permits insurers to use specific deductibles for wind and hail damage, including hurricanes:
  • Hurricane or windstorm deductibles often range from 1% to 5% of a home’s insured value.
  • These percentage-based deductibles typically exceed standard flat-dollar deductibles.
  • Insurance policies must clearly state these deductibles.
Important steps for homeowners:
  • Carefully review your policy to understand your hurricane deductible.
  • Plan for potentially significant out-of-pocket expenses in case of a claim.
  • Ask your insurer about options for lower deductibles, which may involve higher premiums.

What rights do Texas homeowners have if insurers non-renew policies after hurricane claims?

Texas law provides specific protections regarding policy non-renewals:
  • Insurers must give 30 days’ notice before non-renewing a policy.
  • A single claim cannot be the sole reason for non-renewal.
  • For policies in force for three years or more, insurers cannot non-renew based on claims from natural causes or claims filed but not paid.
If you suspect unfair non-renewal:
  • File a complaint with the Texas Department of Insurance.
  • Consult a legal professional to understand your options.

What options exist for disputing hurricane damage claim decisions?

Texas homeowners have several avenues to dispute claim decisions:

Request a review through your insurer’s appeals process, providing additional supporting documentation.
For disputes about loss amounts, policies may allow an appraisal process involving independent appraisers and an umpire.
The Texas Department of Insurance offers voluntary mediation for certain property damage claims.

File a complaint with the Texas Department of Insurance (TDI) for suspected violations of insurance laws.

Consider legal action as a last resort, observing the 60-day notice requirement from House Bill 1774 (2017).
Review your policy and consult a qualified attorney to understand your specific rights and options.

What should Texas homeowners know about flood insurance and hurricanes?

Flood insurance is a critical component of hurricane protection in Texas:

  • Standard homeowners and windstorm policies do not cover flood damage.
  • Separate flood insurance is available through the National Flood Insurance Program (NFIP) or some private insurers.
  • New flood insurance policies typically have a 30-day waiting period before coverage begins.

Important considerations:

  • FEMA reports that over 20% of flood claims come from properties outside high-risk flood zones.
  • Federal disaster assistance is not a substitute for flood insurance and often involves repayable loans.
  • Use FEMA’s flood maps to assess your risk, but remember they don’t show all potential flood hazards.

Remember, insurance laws evolve. Consult a qualified attorney for current legal advice on your specific situation.

Do you need expert guidance on your hurricane insurance claim? Contact

Texas Hurricane Lawyer at (855) 589-5320 or send us a message on our secure online form for a free consultation. Our team will work to protect your rights and pursue fair compensation for your hurricane-related damages.

Texashurricane.lawyer is sponsored by Callender Bowlin – Advocates for fair hurricane compensation in Texas.

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