How to Save on Texas Windstorm Insurance!

In 1970 Hurricane Celia caused about 930 million in Texas property damage. Adjusted for inflation that would be about 6 billion in 2012 dollars! After that most insurance company's became unwilling to insure property in the Texas coastal area for windstorm damage. As a result the Texas Windstorm Insurance Association (TWIA) was created by the state of Texas to provide windstorm insurance in certain coastal areas.
Unlike other insurance carriers TWIA is not intended to generate a profit. And they have the ability to charge other carriers an assessment to help pay for claims. In effect TWIA is subsidized and will generally be the least expensive place to get windstorm insurance in areas served by the association.
TWIA does not sell directly to the public and does not have agents. Agents properly licensed with the Texas department of insurance can assist consumers with obtaining coverage. Rates are set by the association so a policy should cost the same at any agency. However some agency's add an agency fee to the policy cost, so my first suggestion would be to deal with an agent that does not charge an agency fee. Some other suggestions for cost savings are listed below.
• Ask for rates with different deductibles. Options range from 1% to 5% and this will make a major difference in the premium you pay. Select the option that you feel is the best compromise of premium to deductible.
• Your agent can calculate your homes estimated replacement cost. If you under insure you are at risk if there is a total loss. Over insuring can cause you to pay a higher premium than necessary.
• If possible pay in full for your policy. Paying in installments will result in finance charges being added. That could add 18% or more to your cost.
• If your home does not meet TWIA guidelines it may be possible to get a policy with a "waiver". There is a charge for this so if possible you should try to remedy the issue rather than pay the waiver charge every year.
• You can save money by not taking the "wind driven rain" upgrade. However it is best to get the upgrade if your companion hazard policy is not covering wind driven rain.
• You will pay less if you elect to not take the "increased cost of construction" upgrade. Discuss the merits of that coverage with your agent.
• Some homes do not meet the requirements of the association. You may be able to get a policy from a private company at a significantly higher cost. In that case it could be a good idea to call TWIA and ask what would need to be done to meet their guidelines. In many cases it will be less expensive in the long term to pay for repairs or inspections, than to pay a high rate year after year.