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 Homeowners Insurance Requirements
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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D
Test Your Knowledge
What does TWIA provide coverage for?
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B
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D