2.1 Texas Homeowners Insurance Requirements
Key Takeaways
- Texas uses the HO-A (basic), HO-B (broad), and HO-C (special) policy forms unique to the state
- The Texas FAIR Plan (TWIA for coastal areas, TFPA for other areas) provides coverage for high-risk properties
- Texas requires 30 days notice for cancellation and 60 days for non-renewal of homeowners policies
- Named storm deductibles are common and can be 1-5% of dwelling coverage
- Texas law prohibits unfair discrimination in property insurance underwriting
Last updated: January 2026
Texas has specific property insurance regulations and unique policy forms that producers must understand.
Texas Homeowners Policy Forms
Texas uses unique policy forms different from ISO national forms:
Texas Policy Forms
| Form | Coverage Type | Dwelling | Personal Property |
|---|---|---|---|
| HO-A | Basic | Named perils | Named perils |
| HO-B | Broad | Named perils (more) | Named perils |
| HO-C | Special | Open perils | Named perils |
Exam Tip: Texas HO-A, HO-B, HO-C differ from national ISO forms. HO-C is most similar to the ISO HO-3.
Key Differences from ISO Forms
- Texas forms are developed by the Texas Department of Insurance
- Different peril lists than ISO
- Texas-specific endorsements available
- Must use Texas-approved forms
Texas Residual Markets
Texas has two primary residual market mechanisms:
Texas Windstorm Insurance Association (TWIA)
TWIA provides wind and hail coverage for 14 coastal counties:
| Feature | Details |
|---|---|
| Coverage | Wind and hail only |
| Territory | 14 coastal counties + parts of Harris County |
| Eligibility | Must be declined by voluntary market |
| Building Code | Must meet WPI-8 standards |
| Deductible | 1%, 2%, or higher of coverage |
Texas FAIR Plan Association (TFPA)
TFPA provides coverage for properties unable to obtain voluntary market coverage:
| Feature | Details |
|---|---|
| Coverage | Fire and allied lines |
| Territory | All of Texas |
| Eligibility | Declined by voluntary market |
| Coverage Limits | Up to $3 million |
Cancellation and Non-Renewal Requirements
Texas has strict requirements for canceling or non-renewing property insurance:
Cancellation Notice Requirements
| Reason for Cancellation | Notice Required |
|---|---|
| Non-payment of premium | 10 days |
| Fraud or misrepresentation | 30 days |
| Increase in hazard | 30 days |
| Policy in effect < 60 days | 30 days |
Non-Renewal Notice Requirements
| Timeframe | Requirement |
|---|---|
| Standard Non-Renewal | 60 days before expiration |
| Reason Required | Must provide reason upon request |
| After Claim | Cannot non-renew solely due to one claim |
Texas Consumer Protections
- Cannot cancel/non-renew for filing one claim in 3 years
- Must provide specific reason for non-renewal
- Right to appeal to TDI
Named Storm Deductibles
Texas allows separate deductibles for named storms:
Deductible Options
| Type | Amount |
|---|---|
| Percentage Deductible | 1%, 2%, 5% of dwelling coverage |
| Dollar Deductible | Fixed amount |
| Application | Hurricanes and named tropical storms |
Disclosure Requirements
- Must clearly disclose hurricane/windstorm deductible
- Separate from standard deductible
- Consumer must acknowledge in writing
Flood Insurance
- Standard property policies exclude flood damage
- National Flood Insurance Program (NFIP) available
- Private flood insurance growing in Texas market
- Agents must disclose flood exclusion
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Test Your Knowledge
How many days notice must a Texas insurer provide for non-renewal of a homeowners policy?
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B
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D
Test Your Knowledge
What does TWIA provide coverage for?
A
B
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D