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What’s Up with the Wind (Hail and Hurricane) ?

Farmersw   By: Craig Slater

We are referring to the Wind, Hail and Hurricane protection normally included in your homeowner’s insurance policy. This valuable protection can be excluded on your home if it is located in a a county that abuts the coast, such as Brazoria and Galveston counties.

Some insurance providers are adjusting the way they address this risk. One way is by excluding this coverage from new  policies altogether.  This forces homeowners to seek protection for this risk through the Texas Windstorm Insurance Association (TWIA).

With this change in philosophy we wanted to address some of the most common questions we receive from homeowners and mortgage companies.  These questions and answers provide an overview of how to protect one of your most valuable assets should you find you are in need of  adequate windstorm protection.

Who is the TWIA?

The Texas Windstorm Insurance Association is a ‘pool’ of all property and casualty (P&C) insurance companies authorized to write coverage in Texas.

TWIA is neither a state organization, nor a for-profit company, and therefore does not seek to increase its market share.  They do not actively compete against private insurance providers. TWIA is the provider of “last resort.”

TWIA's purpose is to provide Texas citizens with adequate wind and hail coverage when it is not available in the insurance marketplace, and pay insured's claims when losses occur.

How do I secure coverage through the Texas Windstorm Insurance Association?

An application for windstorm and hail coverage through the Texas Windstorm Insurance Association must be submitted by a licensed property and casualty agent. The application must be on forms prescribed by the Association, and include premium payment, a current replacement cost estimate and certification document, WPI-8 (if required).  The dwelling must be insurable with regard to minimum acceptable maintenance standards, and as with all dwellings should reflect pride of ownership.

What is a WPI-8 and why do I need one?

A WPI-8 is a building code certificate of compliance that is issued by the Texas Department of Insurance.  It certifies that a structure has been erected, altered and/or repaired in accordance with building construction requirements for windstorm coverage in the TWIA.

What is the significance of 1988 as it relates to obtaining coverage in the TWIA?

Homes built prior to 1988 are covered by a grandfather clause and are not required to obtain a  WPI-8.  BUT, any modifications or alterations to the home, including a reroof have to be certified.

What do I need to know about building code credits on homes built after 1998?

Homes built after September 1, 1998 that meet or exceed the standards of the Wind Resistance Code (WRC) or the International Residential Code (IRC) qualify for superior construction discounts.  This can result in a premium savings of up to 26% on the dwelling and 20% on personal property.

NOTE!  Homes built to comply with the Southern Standard Building Code (SSBC) DO NOT qualify for these discounts.

Building code standards are reflected on the WPI-8.

How can I determine if my home or roof is certified?

If your home was constructed after 1988, or if you have had your roof replaced and would like to determine if the certification (WPI-8) is available, the information can be found on the Texas Department of Insurance website (www.tdi.state.tx.us).  Under the search column on the left side, select “Windstorm Certificates”, then type in your address and county.  If your home is certified, it will be reflected and you can print your certificate.

How would the Association  know if my roof has been changed?

The TWIA contracts independent inspectors to inspect the majority of the homes submitted for coverage. A trained inspector can identify a roof  that is less than 18 years old (2007 – 1988 = 19 years).  Coverage will be terminated unless the appropriate certification is obtained by an approved inspector.

Can any home inspector complete the certification requirements?

No.  The inspector has to be approved by the Texas Department of Insurance. A list of independent approved engineers is available on the TDI website.

Can I still obtain coverage through the TWIA if I do not have a WPI-8?

If your home was built after 1988, was altered, or the roof was replaced, and the changes were not certified, you may be eligible for the waiver program.  The waiver program, which was initiated in 2006, allows homeowners that do not have a required WPI-8 and have wind coverage in their existing homeowner’s policy that is now being excluded, to obtain coverage.  Effective March 1, 2007, the surcharge for this waiver will increase to 10%.

Are any providers offering a complete package?

Preferred carriers in our area are limiting or excluding this coverage in their standard homeowner’s policy.  In addition it has been noted that several carriers are excluding this protection when an existing policy is scheduled to renew,  and rewriting the wind, hail and hurricane protection in the TWIA.

We wish to stress the importance of obtaining a WPI-8 certificate should you have your roof replaced or significantly repair or alter your home.

Craig Slater is a FARMERS Insurance agent in Pearland.  He can be contacted at (281) 997-7575.

For all of your Pearland Real Estate needs, contact Danny Frank at 713-569-8102 or at www.danfrankrealty.com  

 

 

 

 

 

Posted: Tuesday, November 27, 2007 11:59 AM by Danny Frank

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