The Texas Windstorm Insurance Association (TWIA) Legislative and External Affairs Committee is meeting virtually on September 1, 2026, at 1:30 p.m. The agenda includes a high-profile topic: potentially restricting residential property insurance eligibility exclusively to owner-occupied homesteads.
The proposal would seek to modify Chapter 2210 of the Texas Insurance Code to strip secondary homes and non-primary properties of TWIA eligibility. The objective is to significantly reduce overall exposure and probable maximum loss (PML).
According to committee background data, secondary homes make up a substantial footprint for the association:
- Exposure: As of March 31, 2026, nearly 20% of TWIA’s residential policies—amounting to $19 billion in exposure—are secondary homes.
- Geographic Concentration: Nearly 60% of these secondary properties are concentrated in Galveston and Nueces Counties.
- PML Reduction: Excluding secondary home policies would drop the projected PML to $3.395 billion, marking a 21% reduction from the $4.305 billion funding need determined by the Board for the storm season.
- Reinsurance Savings: Staff estimates based on 2026 reinsurance costs indicate net reinsurance expenses would drop from $197 million to roughly $135–$140 million, translating to a savings of about $60 million (30%).
While the committee will discuss the proposal, any absolute change to eligibility rules would require legislative action by the Texas State Legislature.
The agenda does not say whether the committee will take a separate vote on the secondary-home proposal. It does say the committee may take action on any agenda item. [Meeting Materials]
Interested members of the public can listen to the live discussion by registering via Zoom through TWIA’s official Board Meetings page.
