February 24, 2025

Texans Are Facing Sharp Premium Increases For Windstorm Insurance

Windstorm insurance costs have risen sharply in the last few years.

As of early 2025, the average homeowner in Texas pays around $2,400 per year for windstorm insurance.

From rising repair costs to an increased risk of severe weather, windstorm damage is becoming more common – and insurers pass these higher costs onto consumers.

Find out everything you need to know about the average cost of windstorm insurance in Texas.

The Average Texas Homeowner Pays $2,403 Per Year for Windstorm Insurance

According to our research, the average homeowner in Texas, as of early 2025, pays around $2,403 per year ($200.25 per month) to protect their home from windstorm damage.

Windstorm insurance protects your home and possessions against windstorm damage – including hurricane damage, hailstone damage, tornado damage, and other damage caused directly by wind.

Most lenders in Texas require windstorm insurance. If you have a mortgage, you may need to carry windstorm insurance to protect the collateral of the loan – your house.

Factors that Impact the Cost of Windstorm Insurance

The cost of windstorm insurance varies widely based on location, home value, local risk factors, and insurance company. Some homeowners in Texas pay under $1,000 per year for windstorm insurance, while others pay $6,000 or more.

Some of the factors that impact windstorm insurance costs in Texas include:

Deductibles
Home location
Home value
Additional endorsements
Insurance company
Amount of coverage

Interestingly, the TWIA assigns the same rates for windstorm insurance throughout the 14 first-tier coastal counties in Texas. In these counties, you don’t pay higher or lower rates based on geographical features (like distance to the coast).

Windstorm insurance in Texas comes from the TWIA, and rates tend to be similar across insurers. However, it’s still important to shop around. Contact your insurer or an insurance agent to find the best price, and take advantage of any bundling opportunities, if possible.

Windstorm Insurance Premiums Are Expected to Rise

Windstorm insurance in Texas comes from an organization called, appropriately enough, the Texas Windstorm Insurance Association (TWIA).

The TWIA acts as the insurer of last resort. If an insurer is unwilling to insure a home against wind damage because of high risk, the homeowner can still buy insurance through the TWIA.

According to the TWIA, the average premium on a TWIA residential policy is around $2,300 as of June 30, 2024.

However, the TWIA believes rates need to be higher to accommodate higher risk. In fact, according to a 2024 actuarial analysis from the TWIA, the organization needs to increase rates:

38% for residential policies
45% for commercial policies

This is the amount windstorm insurance rates need to rise beyond $2,300 per year to meet actuarial guidelines (i.e. risk estimates) in most areas.

The TWIA raises rates by 5% per year, almost every year, to accommodate this higher risk:

The TWIA increased residential and commercial premiums by 5% per year from 2011 to 2016.
Between 2017 and 2021, the TWIA raised rates 5% total (a 5% rate hike in 2018 with 0% hikes every other year).
The TWIA raised rates 5% in 2022 and 0% in 2023.
The TWIA requested a 10% rate increase with the TDI in 2019 to accommodate higher risk. However, the TDI rejected the increase, and the TWIA withdrew the filing. Something similar occurred in 2021, when the TWIA requested a 5% rate increase and the request was rejected. Source: https://www.twia.org/rates/

Expect further rate increases as the TWIA aims to keep up with risk. According to our analysis, rates have already risen to around $2,403 per year by late 2025, but they likely need to rise even higher in the coming years.

How to Lower Windstorm Insurance Premiums

Wherever you live in Texas, windstorm insurance can be a substantial cost of home ownership. The average homeowner spends $150 to $300 per month on windstorm insurance alone.

Fortunately, there are ways to lower windstorm insurance premiums to save money, including:

Increase Deductibles: Oftentimes the best way to lower the cost of windstorm insurance is to increase your deductible. The higher your deductible is, the less you’ll pay for monthly insurance premiums (although you’ll pay more for your deductible if you ever make a claim). Windstorm insurance policies tend to have higher deductibles than ordinary homeowners insurance. You might pay a deductible of $5,000 to $10,000, for example. Or, you could choose a named storm deductible based on a certain value of your home (say, 2.5% to 10%).
Reduce Coverage: Some homeowners over-insure their homes and property. You could reduce coverage to save money. Consider the value of your home and possessions to determine if you can reduce coverage.
Adjust Coverages & Endorsements: Windstorm insurance could have extra coverages and endorsements. Consider removing these coverages to reduce your monthly premiums.
Choose Actual Cash Value or Replacement Cost Coverage: Your windstorm insurance policy should include either actual cash value or replacement cost coverage. Actual cash value policies are much cheaper: they compensate you based on the value of your items, minus depreciation. Replacement cost coverage, meanwhile, covers the cost of actually replacing your items.
Bundle: Some homeowners buy windstorm insurance through their own insurance provider. If you bundle windstorm insurance with home and auto insurance, you could save money (in most cases, however, windstorm insurance is separate from home and auto insurance and doesn’t qualify for bundling discounts).
Ask About Discounts: Some insurers provide a discount for new roofs. A new roof reduces the risk of windstorm damage. Ask your insurer if you qualify for new roof discounts and other available discounts.
Shop Around: Most homeowners in Texas buy windstorm insurance through the Texas Windstorm Insurance Association (TWIA). However, you don’t work directly with the TWIA to buy insurance; instead, you contact your ordinary insurance company or insurance agent. That means you can shop around, compare quotes, and check with different providers. The Texas Department of Insurance maintains a list of home and residential property insurance providers here. Generally, most homeowners buy windstorm insurance through their existing homeowners or auto insurance company, if possible.