TDI Denies TWIA Request to Raise Max Liability Limits

The Texas Department of Insurance (TDI) has formally denied a request by the Texas Windstorm Insurance Association (TWIA) to increase maximum liability limits on windstorm and hail policies. TWIA requested a 4.2% increase for residential dwellings and townhouses; a 4.5% increase for contents of an apartment, condominium, or townhouse; and a 3.9% increase for commercial structures.

TDI issued a Commissioner’s Order on October 11, 2018, officially denying the request. Each year, TWIA files proposed inflation adjustments based on the Boeckh Index, which tracks the insurable value adequacy of residential construction in the United States. According to the order, the current maximum liability limits have “significantly exceeded” the increases in the Boeckh Index since 1997.

TDI conducted a public hearing on October 8, 2018, to discuss TWIA’s request. During the hearing, Jerry Fadden, TWIA’s Chief Financial Officer, presented the request, while Brian Ryder, Senior Actuary at TDI, presented the TDI staff’s analysis. There were no public comments.

The full text of the Commissioner’s Order can be viewed on the TDI website.