TDI OKs Higher TWIA Liability Limits for Manufactured Homes

September 15, 2021

The Texas Department of Insurance (TDI) approved the Texas Windstorm Insurance Association’s (TWIA’s) petition to increase its maximum liability limits on manufactured homes, but regulators said the insurer of last resort for wind and hail for properties along the Texas coast must revise its liability limit proposals for other types of properties.

The proposed adjustments would apply to windstorm and hail insurance policies delivered, issued for delivery, or renewed on or after Jan. 1, 2022. The petitions do not affect TWIA rates.

TDI received TWIA’s annual filing to propose adjustments to its maximum liability limits on Aug. 6, 2021.

The insurer had proposed the following adjustments to the maximum liability limits:

  • An increase of 14.9%, from $1,773,000 to $2,037,000, for residential dwellings and individually owned townhouses and their contents.
  • An increase of 13.9%, from $374,000 to $426,000, for the contents of apartments, condominiums, or townhouses.
  • An increase of 11.4%, from $4,424,000 to $4,927,000, for commercial and governmental structures and their contents.
  • An increase of 15%, from $84,000 to $96,600, for manufactured homes.

TDI noted the maximum limit of liability for manufactured homes has remained at $84,000 since 1994.

According to TDI, TWIA’s cumulative adjustments to the maximum liability limits for residential dwellings, the contents of apartments, and commercial buildings have significantly exceeded the increases in the weighted average BOECKH Index factors.

As a result, TDI disapproved TWIA’s proposed increases to its current maximum liability limits for windstorm and hail insurance policies for dwellings and individually owned townhouses and their contents; contents of an apartment, condominium, or townhouse; and commercial and governmental structures and their contents, delivered, issued for delivery, or renewed on or after Jan. 1, 2022.

TDI is accepting written comments on TWIA’s proposals and will conduct a hearing on the liability limits at 3 p.m. Central time, Sept. 28, 2021.

Written comments must be submitted to ChiefClerk@tdi.texas.gov by 5 p.m. Central time, Sept. 24, 2021.

Source: TDI

Topics Manufacturing

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