Insurance rates could climb for some Texas coastal homeowners, businesses

The Texas Windstorm Insurance Association, the state’s insurer of last resort for homes and businesses on the Gulf Coast, will consider raising rates as climate change increases the chances of more severe storms and damages become more costly.

The association’s board of directors is expected to vote on a 10% rate increase for residential and business policyholders at their Aug. 6 meeting. If approved, Texas Insurance Commissioner Cassie Brown must ultimately sign off on the increase.

Homeowners typically pay $2,300 a year for a TWIA policy. The proposed rate increase would bump their annual insurance premium by $230.

“Our board members are aware of the burden of insurance rates on our policyholders on the coast,” said Aaron Taylor, TWIA’s senior legislative and external affairs specialist. “They also want to make sure that we have the financial sustainability and the financial resources to pay those claims when our policyholders need us.”

Read more: https://www.texastribune.org/2024/07/29/coastal-texas-windstorm-insurance-rate-increase-beryl/