How does wind and hail insurance work for Texas apartment buildings?
Texas coastal properties must often buy wind coverage through the Texas Windstorm Insurance Association (TWIA), and all Texas properties face percentage-based hail deductibles driven by ISO endorsements.
Texas presents unique wind and hail challenges for apartment owners. Along the Gulf Coast, the 14 first-tier coastal counties and portions of Harris County are designated as the TWIA-eligible catastrophe area under Texas Insurance Code Chapter 2210. Many private insurers exclude wind and hail in these counties, forcing apartment owners to obtain coverage from the Texas Windstorm Insurance Association (TWIA), the state-created insurer of last resort.
TWIA requires a WPI-8 certificate confirming the building meets the Texas Department of Insurance windstorm building code standards before issuing coverage. Older buildings that cannot pass the WPI-8 inspection may be ineligible, leaving the owner to seek coverage in the surplus lines market at substantially higher premiums. TWIA deductibles are 2% of the insured value, with a 1% buy-down option available for an additional premium.
Inland Texas properties face a separate issue: rising hail deductibles. Following the ISO Commercial Property endorsement CP 03 40 (Windstorm or Hail Percentage Deductible), most Texas apartment policies now carry hail deductibles of 1% to 5% of the total insured value. The Texas Department of Insurance Bulletin B-0013-15 clarified that percentage wind/hail deductibles must be clearly disclosed to policyholders. Apartment owners in hail-prone corridors from San Antonio through Dallas should budget for these elevated deductibles and consider hail-resistant roofing materials (UL 2218 Class 4 rated) to reduce both damage frequency and premium costs.