Posted on May 19, 2014
Hurricanes, storm surges, hail and tropical storms are just part and parcel of living on the Texas coastline. So when residents and business owners look to protect their property, windstorm insurance is an absolute must. Unfortunately, many insurance carriers do not provide coverage for windstorm damage in homeowner or commercial property policies. When that happens, property owners must look to the carrier of last resort, the Texas Windstorm Insurance Association (TWIA).
The Texas state legislature established the non-profit TWIA so that gulf coast property owners would have wind and hail insurance coverage for catastrophic losses. The coverage offered is basic protection designed to provide insurance when no other options are available. Windstorm coverage is offered by the TWIA for 14 counties on the coast as well as part of Harris County east of Hwy 146.
Whether provided by private insurance carrier or the Texas Windstorm Insurance Association, windstorm coverage must be purchased well in advance of any hurricane activity. Businesses in the southern part of the state should evaluate existing commercial property policies to learn whether wind, hail or hurricane is a provided protection, and if not, immediately obtain a hurricane or windstorm policy to protect business property and assets.
Also, companies with existing windstorm insurance should review the coverage amount to make sure that it still adequately meets their needs. If property values have increased or additional assets have been added to the business, then it may be necessary to increase wind insurance policy limits. In the event of a catastrophic loss, business owners will want to make sure there is enough insurance to cover repair and replacement of business buildings, equipment and other assets.