https://www.galvnews.com/news/proposed-state-windstorm-insurance-change-could-leave-many-galveston-residences-uninsurable/article_74db1af7-4b89-4ef1-ad19-842f0d9d1c71.html

What does this mean for other coastal communities with large numbers of secondary homes?

Well, first, it's not a done deal. It probably will be though, and the fact is there are more counties that still get coverage and those folks want cheaper rates which they will get with this plan. That's a good thing.

Second, other communities that aren't in the list won't be impacted right?

Insurance is a game of risk. You hope you need it so you get your money's worth, they hope you don't.

This proposal will mean that if you want to own a home in a high risk area, then you need to be prepared to self insure it. Even with many insurance carriers and roofing, this is a direction they are moving. I am roofing a lot of roofs for no other reason than the fact they are 10 years old, that's the cutoff for that paritcular carrier, and if they homeowner wants to keep their coverage, they will replace the roof on their own dime. Most do.

Folks everywhere are going to be self insuring their own roofing before long or paying through the nose if they want coverage.

Personally, I don't think this 'gap' in coverage will stick around long. The free market will prevail. As a business person myself, I can already envision owning an insurance company specializing in certain areas where no other options exist. It would be quite profitable as they will charge through the nose for coverage in order to adequately cover those losses in the event it happens. It makes sense.

The entire industry of insurance is drastically different than it was 5 years ago, and it's rapidly changing as we speak. The burden of ownership and insurance is going to be placed squarely on the owner in the near future, in my opinion.

I guess in the near future, it means your clients will be a higher caliber of person that has the means to own a second home and self insure it. It might also mean fewer houses are rebuilt after the next storm.

Id imagine this is going to impact the buying side. You would be dealing with cash deals if you can't get a mortgage because you can't get insurance.

For rentals, I'd imagine rents will go unsubstantially to offset self insuring.

Any number of things could happen i guess. But id say if no insurance availability, then mortgage eligibility is a problem, which means reduced buyers, less demand, lower property values….lots of cash deals I guess?

It's great to get the insight of a professional roofer. My main question is how the state determines which coastal communities are considered more at risk than others.

For example, Harvey actually made landfall near Port Aransas in 2017, and that remains its last direct hurricane hit. Meanwhile, Galveston has certainly been affected by storms since then, including Nicholas and Beryl. So what data or criteria justify drawing a line where one coastal community qualifies for coverage while another doesn't?

I understand that some areas may have statistically higher risk, but when you're talking about the Texas coast, it seems difficult to say that one community is meaningfully safe from a major hurricane while another is not. That's the part of this proposal I'm struggling with.

Ah....Well, I think it's simply a matter of the number of secondary homes that are insured under TWIA. The article said that 60% of the secondary homes they insure are in Galveston and Nueces counties. It's purely a cost savings measure, I guess.

There is some exposure info in this Q4 2025 Factbook...
https://www.twia.org/wp-content/uploads/Q4-2025-TWIA-Fact-Book.pdf



But, that chart shows Galveston and Nueces only making up 50% of the exposure, so I don't know where their numbers came from. Brazoria has more exposure than Nueces but that isn't singled out. Probably someone on the board has a second home in Brazoria. LOL.

But seriously, I don't know. Those numbers make it not quite add up, eh? Must be something more to it.

looks like it was removed from yesterday's agenda

https://www.twia.org/twia-committee-finalizes-recommendations-to-board-on-legislative-report-3/

Folks - poorly written article. There are already secondary markets writing just the peril of wind. I represent many but not all of them, some are domestic and some are not ie...Lloyds of London. There are other secondary markets that will take the wind as long as they find the fire risk acceptable, they want to insure more than one peril. It's not a TWIA or the highway deal. Property underwriting typically involves bldg age, construction, roof type, wind rating for windows and the roof. Older bldgs underwriters will want to know is there are any updates. Presently there seems to be more Insurance Carriers willing to take on commercial bldgs vs residential.

The hurdle maybe does your Insurance Agent has the acumen to work with more than TWIA. If you are in a TWIA tier one (think coastal county) find an independent insurance agent. There are several reputable agents from Beaumont to Brownsville.

Once you get a price then you decide to transfer the risk or self insure.