Texas Coastal Windstorm Insurance for Real Estate Investors

On the Texas coast, wind is often the biggest risk to a property and the hardest piece to insure. Investors buying or renovating near the coast should plan the wind coverage before closing, not after.

Wind is often excluded on the coast

In the designated Texas coastal counties, many property policies exclude wind and hail. The rest of the coverage - fire, theft, liability - stays on the main policy, and wind is written separately.

Where the wind coverage comes from

Wind coverage on the coast comes from the Texas Windstorm Insurance Association (TWIA), the state's insurer of last resort for wind, or from a private wind carrier where one will write the property. Either way it is a second policy with its own deductible and its own evidence.

Windstorm inspections and certificates

TWIA generally requires a certificate of compliance showing that construction or repairs meet the windstorm building code, which means inspections during the work. Plan for this on any renovation near the coast: work that was not inspected can be hard to certify later.

What lenders want

Lenders want wind covered and evidenced, not just the main policy. Expect them to ask for the wind policy's evidence with their mortgagee clause and loan number, and to check the wind deductible against their cap. Flood is separate again.

Plan ahead

Ask about wind before you make an offer on a coastal property, and before a renovation starts. Knowing whether the building can be certified, and what the wind deductible will be, avoids a surprise at closing.

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